FRME First Merchants Corporation

NASDAQ
$40.83

First Merchants Corporation Announces Third Quarter 2026 Results

Wednesday, October 21, 2026 · 4:05 PM ET GlobeNewswire

MUNCIE, Ind., Oct. 21, 2026 (GLOBE NEWSWIRE) -- First Merchants Corporation (NASDAQ - FRME) (the "Corporation" or "First Merchants")

Third Quarter 2026 Highlights:

  • Net income available to common stockholders was $67.8 million, or $1.09 per diluted common share, compared with $43.5 million, or $0.70 per diluted common share, in the second quarter of 2026 and $56.3 million, or $0.98 per diluted common share in the third quarter of 2025.
  • Adjusted pre-tax, pre-provision income1 of $83.7 million, compared to $84.6 million in the prior quarter and $70.5 million in the third quarter of 2025.
  • Net interest margin on a fully taxable equivalent basis1 of 3.44%, up 6 basis points from the prior quarter and up 20 basis points from the third quarter of 2025.
  • Loan growth of $70.2 million, or 1.8% annualized, on a linked quarter basis.
  • Deposit growth of $175.6 million, or 4.2% annualized, on a linked quarter basis.
  • Robust capital position with Common Equity Tier 1 Capital Ratio of 11.22%.
  • Completed $100 million subordinated debt issuance in late September.
  • Repurchased 1,264,062 shares of common stock totaling $50.3 million year-to-date, including 287,431 shares totaling $12.0 million in the third quarter.
  • Nonperforming assets to total assets were 57 basis points compared to 56 basis points on a linked quarter basis.
  • Efficiency ratio1 totaled 54.55% for the quarter.
  • Announced the planned CEO transition: President Mike Stewart will succeed Mark Hardwick as Chief Executive Officer upon Mr. Hardwick’s retirement at year-end 2026.

"First Merchants delivered strong third quarter results. Earnings per diluted share were $1.09, up 11 percent from the third quarter of last year, fully taxable equivalent net interest margin1 rose 6 basis points to 3.44 percent, and deposit growth was solid," said Mark Hardwick, Chief Executive Officer. "We made meaningful progress resolving the two commercial credits identified last quarter, and nonperforming assets remained stable. Our capital position remains very strong and we continue to return capital to shareholders through dividends and share repurchases."

"As I approach my retirement at year-end, I am grateful to our 2,200 teammates for their dedication and to our clients and shareholders for the trust they have placed in us during my 29 years with First Merchants. I have great confidence in Mike Stewart and our leadership team, and I believe First Merchants is well positioned for continued success as they build on our Midwestern strength, deepen our client relationships and continue helping the communities we serve prosper."

Third Quarter Financial Results:

The Corporation reported net income available to common stockholders of $67.8 million for the third quarter of 2026, compared with $56.3 million in the third quarter of 2025. Diluted earnings per common share were $1.09, compared with $0.98 a year earlier. Current quarter results included acquisition-related costs of $0.9 million that consisted primarily of equipment and professional fees. Excluding these non-core charges, adjusted earnings per diluted common share1 for the third quarter of 2026 totaled $1.10 compared to $0.99 in the prior-year period.

For the nine months ended September 30, 2026, net income available to common stockholders totaled $139.0 million, or $2.24 per diluted common share, compared with $167.5 million, or $2.90 per diluted common share in the prior-year period. Adjusted net income available to common stockholders1 was $178.0 million, or $2.87 per diluted common share, compared with $168.2 million, or $2.91 per diluted common share, a year earlier. Nine-month adjusted earnings exclude $21.7 million of acquisition-related expenses and the $29.8 million negative valuation adjustment recorded in the first quarter on $271.1 million of mortgage loans sold, resulting in total adjustments of $51.4 million before tax and $39.0 million after tax.

Total assets of the Corporation equaled $21.1 billion as of quarter-end and loans totaled $15.6 billion. Loans increased $2.0 billion during the last twelve months and $70.2 million on a linked quarter basis. Excluding loans acquired through First Savings Financial Group, Inc. (“First Savings”) and the impact of mortgage loan sale activity in the first quarter of 2026, the Corporation generated organic loan growth of $473.7 million, or 3.5% during the past twelve months.

Investment securities, totaling $3.1 billion, decreased $257.9 million, or 7.6% during the last twelve months and decreased $167.6 million on a linked quarter basis. Investment securities declined during the quarter due to principal paydowns and maturities, and a decline in the securities portfolio valuation due to increases in interest rates.

Total deposits equaled $16.9 billion as of quarter-end and increased by $2.1 billion over the past twelve months. The acquisition of First Savings contributed $1.7 billion in deposits. Total deposits increased $175.6 million, or 4.2% annualized, on a linked quarter basis. The loan-to-deposit ratio remained relatively stable at 92.2% at period end, compared to 92.7% in the prior quarter.

The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $215.5 million as of quarter-end, or 1.38% of loans, a decrease of $26.1 million from the prior quarter. Net charge-offs totaled $29.4 million driven by two non-performing credits for which specific reserves were established in the prior quarter. Provision for credit losses of $3.3 million was recorded during the quarter. Nonperforming assets to total assets remained relatively stable at 0.57%, compared to 0.56% in the prior quarter. Related credit costs for new nonaccrual loans were recognized in prior quarters. Reserves for unfunded commitments totaling $18.5 million remained unchanged from the previous quarter.

Net interest income, totaling $161.1 million for the quarter, increased $2.1 million, or 1.3%, compared to prior quarter and increased $27.4 million, or 20.5%, compared to the third quarter of 2025. Fully taxable equivalent net interest margin1 was 3.44%, an increase of 6 basis points from the linked quarter and an increase of 20 basis points compared to the third quarter of 2025.

Noninterest income totaled $38.0 million for the quarter, an increase of $0.8 million, compared to the prior quarter and an increase of $5.5 million compared to the third quarter of 2025. The linked-quarter increase primarily reflects higher deposit service charges and an increase in income from CRA investments recorded through Other Income.

Noninterest expense totaled $116.3 million for the quarter, an increase of $0.9 million from the prior quarter and an increase of $19.7 million from the third quarter of 2025. Acquisition-related costs totaling $0.9 million were incurred during the quarter and $3.8 million were recorded in the prior quarter. Excluding acquisition costs, noninterest expense increased $3.9 million linked quarter, primarily driven by a $1.4 million increase in marketing expense, a $0.7 million increase in employee health insurance costs, and a $0.6 million increase in premises expense that included a $0.5 million building lease impairment charge.

The Corporation’s total risk-based capital ratio equaled 13.58%, the common equity tier 1 capital ratio equaled 11.22%, and the tangible common equity ratio totaled 8.83%. 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, October 22, 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/BIb6ca7718e42d48c3b903034aad19eef4)

To view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/izzbnu6m) during the time of the call. A replay of the webcast will be available until October 22, 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 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)September 30,
  2026   2025 
ASSETS   
Cash and due from banks$86,594  $88,079 
Interest-bearing deposits 262,503   168,706 
Investment securities available for sale 1,251,540   1,386,903 
Investment securities held to maturity, net of allowance for credit losses of $245 in 2026 and 2025 1,872,951   1,995,488 
Loans held for sale 87,300   23,190 
Loans 15,600,974   13,591,174 
Less: Allowance for credit losses - loans (215,526)  (194,468)
Net loans 15,385,448   13,396,706 
Premises and equipment 145,030   121,771 
Federal Home Loan Bank stock 70,794   47,264 
Interest receivable 99,280   89,102 
Goodwill 788,186   712,002 
Other intangibles 36,320   15,298 
Cash surrender value of life insurance 374,974   306,583 
Other real estate owned 1,605   1,270 
Tax asset, deferred and receivable 136,258   89,758 
Other assets 457,939   369,509 
TOTAL ASSETS$21,056,722  $18,811,629 
LIABILITIES   
Deposits:   
Noninterest-bearing$3,752,990  $2,100,570 
Interest-bearing 13,175,942   12,769,409 
Total Deposits 16,928,932   14,869,979 
Borrowings:   
Federal funds purchased —   199,370 
Securities sold under repurchase agreements 99,638   122,226 
Federal Home Loan Bank advances 903,941   798,626 
Subordinated debentures and other borrowings 184,505   57,632 
Total Borrowings 1,188,084   1,177,854 
Interest payable 17,095   18,240 
Other liabilities 286,230   333,154 
Total Liabilities 18,420,341   16,399,227 
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 - 62,210,134 and 57,192,497 shares 7,754   7,149 
Additional paid-in capital 1,347,943   1,158,026 
Retained earnings 1,483,496   1,377,966 
Accumulated other comprehensive loss (227,937)  (155,864)
Total Stockholders' Equity 2,636,381   2,412,402 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$21,056,722  $18,811,629 
        


CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollars In Thousands, Except Per Share Amounts)Three Months Ended Nine Months Ended
 September 30, September 30,
  2026  2025  2026   2025 
INTEREST INCOME       
Loans:       
Taxable$230,072 $200,406 $670,230  $583,307 
Tax-exempt 11,379  11,173  34,791   32,510 
Investment securities:       
Taxable 7,331  8,288  22,233   24,926 
Tax-exempt 12,279  12,460  37,334   37,493 
Deposits with financial institutions 1,308  1,676  3,699   5,940 
Federal Home Loan Bank stock 1,578  1,092  5,068   3,172 
Total Interest Income 263,947  235,095  773,355   687,348 
INTEREST EXPENSE       
Deposits 91,313  90,821  261,660   255,609 
Federal funds purchased 225  224  1,532   2,001 
Securities sold under repurchase agreements 378  654  1,129   2,059 
Federal Home Loan Bank advances 9,537  8,638  33,775   27,716 
Subordinated debentures and other borrowings 1,426  1,093  3,947   3,014 
Total Interest Expense 102,879  101,430  302,043   290,399 
NET INTEREST INCOME 161,068  133,665  471,312   396,949 
Provision for credit losses 3,300  4,300  41,200   14,100 
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 157,768  129,365  430,112   382,849 
NONINTEREST INCOME       
Service charges on deposit accounts 9,775  8,921  28,184   25,559 
Fiduciary and wealth management fees 9,786  8,842  29,192   26,317 
Card payment fees 5,606  5,007  16,386   14,465 
Net gains and fees on sales of loans 7,428  4,983  21,681   15,854 
Derivative hedge fees 1,082  1,097  2,763   2,332 
Other customer fees 584  414  2,057   1,230 
Earnings on bank-owned life insurance 2,353  1,667  8,124   5,759 
Net realized losses on sales of available for sale securities —  —  —   (8)
Net loss on mortgage loans reclassified to held for sale —  —  (29,755)  — 
Other income 1,391  1,546  2,358   2,320 
Total Noninterest Income 38,005  32,477  80,990   93,828 
NONINTEREST EXPENSE       
Salaries and employee benefits 66,339  57,317  201,556   166,826 
Net occupancy 8,807  7,057  25,335   21,118 
Equipment 8,061  6,998  24,482   20,933 
Marketing 3,630  2,120  7,601   5,470 
Outside data processing fees 7,883  6,943  23,118   19,979 
Printing and office supplies 481  311  1,349   930 
Intangible asset amortization 2,652  1,499  7,660   4,530 
FDIC assessments 4,381  3,526  12,664   10,726 
Other real estate owned and foreclosure expenses 1,594  121  3,746   750 
Professional and other outside services 4,665  3,718  24,237   10,720 
Other expenses 7,761  6,951  24,998   21,079 
Total Noninterest Expense 116,254  96,561  356,746   283,061 
Income Before Income Taxes 79,519  65,281  154,356   193,616 
Income tax expense 11,204  8,516  13,905   24,680 
NET INCOME 68,315  56,765  140,451   168,936 
Preferred stock dividends 468  468  1,406   1,406 
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$67,847 $56,297 $139,045  $167,530 
PER SHARE DATA:       
Basic Net Income Available to Common Stockholders$1.09 $0.98 $2.25  $2.91 
Diluted Net Income Available to Common Stockholders$1.09 $0.98 $2.24  $2.90 
Cash Dividends Paid to Common Stockholders$0.37 $0.36 $1.10  $1.07 
Tangible Common Book Value Per Share(1)$28.86 $29.08 $28.86  $29.08 
Average Diluted Common Shares Outstanding (in thousands) 62,411  57,448  62,003   57,817 

(1) See "Non-GAAP Financial Information" for reconciliation


FINANCIAL HIGHLIGHTS
(Dollars In Thousands)Three Months Ended Nine Months Ended
 September 30, September 30,
  2026   2025   2026   2025 
NET CHARGE-OFFS$        29,389          $        5,148          $        43,550          $        12,389         
        
AVERAGE BALANCES:       
Assets$        21,065,760          $        18,637,581          $        20,911,229          $        18,497,118         
Loans         15,608,069                   13,376,214                   15,321,286                   13,162,668         
Earning Assets         19,432,368                   17,282,901                   19,288,344                   17,135,301         
Deposits         16,885,365                   14,907,861                   16,537,651                   14,654,894         
Stockholders' Equity         2,695,943                   2,367,971                   2,684,796                   2,349,718         
        
FINANCIAL RATIOS:       
Return on Average Assets         1.30        %          1.22        %          0.90        %          1.22        %
Return on Average Stockholders' Equity         10.07                   9.51                   6.91                   9.51         
Return on Tangible Common Stockholders' Equity(1)         15.09                   14.21                   10.43                   14.27         
Average Earning Assets to Average Assets         92.25                   92.73                   92.24                   92.64         
Allowance for Credit Losses - Loans as % of Loans         1.38                   1.43                   1.38                   1.43         
Net Charge-offs as % of Average Loans (Annualized)         0.75                   0.15                   0.38                   0.13         
Average Stockholders' Equity to Average Assets         12.80                   12.71                   12.84                   12.70         
Fully Taxable Equivalent ("FTE") Yield on Average Earning Assets         5.56                   5.58                   5.48                   5.49         
Interest Expense/Average Earning Assets         2.12                   2.34                   2.09                   2.26         
Net Interest Margin FTE(1)         3.44                   3.24                   3.39                   3.23         
Efficiency Ratio(1)         54.55                   55.09                   60.44                   54.54         

(1) See "Non-GAAP Financial Information" for reconciliation


ASSET QUALITY
(Dollars In Thousands)September 30, June 30, March 31, December 31, September 30,
  2026   2026   2026   2025   2025 
Nonaccrual Loans$117,415  $118,203  $89,592  $71,773  $65,740 
Other Real Estate Owned and Repossessions 1,605   1,562   1,264   658   1,270 
Nonperforming Assets (NPA) 119,020   119,765   90,856   72,431   67,010 
Accruing Loans 90+ Days Delinquent 12,672   9,738   4,078   2,042   1,925 
NPAs & 90+ Days Delinquent$131,692  $129,503  $94,934  $74,473  $68,935 
          
Allowance for Credit Losses - Loans$215,526  $241,615  $212,520  $195,597  $194,468 
Quarterly Net Charge-offs 29,389   3,905   10,256   6,021   5,148 
NPAs / Assets % 0.57%  0.56%  0.43%  0.38%  0.36%
NPAs & 90+ Days / Assets % 0.63%  0.61%  0.45%  0.39%  0.37%
NPAs / Loans and OREO % 0.76%  0.77%  0.60%  0.52%  0.49%
Allowance for Credit Losses - Loans as % of Loans 1.38%  1.56%  1.39%  1.42%  1.43%
Quarterly Net Charge-offs as % of Average Loans (Annualized) 0.75%  0.10%  0.27%  0.18%  0.15%
                    


CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars In Thousands, Except Per Share Amounts)September 30, June 30, March 31, December 31, September 30,
  2026   2026   2026   2025   2025 
ASSETS         
Cash and due from banks$86,594  $86,665  $98,083  $84,158  $88,079 
Interest-bearing deposits 262,503   529,432   175,354   196,300   168,706 
Investment securities available for sale 1,251,540   1,384,392   1,372,417   1,407,102   1,386,903 
Investment securities held to maturity, net of allowance for credit losses 1,872,951   1,907,684   1,937,485   1,971,539   1,995,488 
Loans held for sale 87,300   77,880   401,839   20,079   23,190 
Loans 15,600,974   15,530,737   15,261,889   13,791,707   13,591,174 
Less: Allowance for credit losses - loans (215,526)  (241,615)  (212,520)  (195,597)  (194,468)
Net loans 15,385,448   15,289,122   15,049,369   13,596,110   13,396,706 
Premises and equipment 145,030   148,164   146,013   121,058   121,771 
Federal Home Loan Bank stock 70,794   70,818   70,835   47,245   47,264 
Interest receivable 99,280   101,927   97,026   93,374   89,102 
Goodwill 788,186   788,186   782,789   712,002   712,002 
Other intangibles 36,320   38,972   41,678   13,800   15,298 
Cash surrender value of life insurance 374,974   373,242   371,238   308,438   306,583 
Other real estate owned 1,605   1,562   1,264   658   1,270 
Tax asset, deferred and receivable 136,258   113,975   116,814   78,664   89,758 
Other assets 457,939   436,744   410,317   374,574   369,509 
TOTAL ASSETS$21,056,722  $21,348,765  $21,072,521  $19,025,101  $18,811,629 
LIABILITIES         
Deposits:         
Noninterest-bearing$3,752,990  $3,831,836  $3,748,279  $2,137,262  $2,100,570 
Interest-bearing 13,175,942   12,921,545   12,737,338   13,157,593   12,769,409 
Total Deposits 16,928,932   16,753,381   16,485,617   15,294,855   14,869,979 
Borrowings:         
Federal funds purchased —   —   170,000   40,000   199,370 
Securities sold under repurchase agreements 99,638   103,340   89,458   103,755   122,226 
Federal Home Loan Bank advances 903,941   1,414,059   1,299,192   798,549   798,626 
Subordinated debentures and other borrowings 184,505   86,350   86,345   57,630   57,632 
Total Borrowings 1,188,084   1,603,749   1,644,995   999,934   1,177,854 
Interest payable 17,095   17,491   18,890   18,235   18,240 
Other liabilities 286,230   276,967   250,454   245,410   333,154 
Total Liabilities 18,420,341   18,651,588   18,399,956   16,558,434   16,399,227 
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 7,754   7,776   7,813   7,119   7,149 
Additional paid-in capital 1,347,943   1,358,975   1,369,879   1,150,816   1,158,026 
Retained earnings 1,483,496   1,438,894   1,418,609   1,413,742   1,377,966 
Accumulated other comprehensive loss (227,937)  (133,593)  (148,861)  (130,135)  (155,864)
Total Stockholders' Equity 2,636,381   2,697,177   2,672,565   2,466,667   2,412,402 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$21,056,722  $21,348,765  $21,072,521  $19,025,101  $18,811,629 
                    


CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollars In Thousands, Except Per Share Amounts)September 30, June 30, March 31, December 31, September 30,
  2026   2026   2026   2025   2025 
INTEREST INCOME         
Loans:         
Taxable$230,072  $226,531  $213,627  $203,120  $200,406 
Tax-exempt 11,379   11,823   11,589   10,905   11,173 
Investment securities:         
Taxable 7,331   7,355   7,547   7,736   8,288 
Tax-exempt 12,279   12,458   12,597   12,459   12,460 
Deposits with financial institutions 1,308   1,147   1,244   2,187   1,676 
Federal Home Loan Bank stock 1,578   1,525   1,965   1,037   1,092 
Total Interest Income 263,947   260,839   248,569   237,444   235,095 
INTEREST EXPENSE         
Deposits 91,313   86,254   84,093   88,670   90,821 
Federal funds purchased 225   717   590   218   224 
Securities sold under repurchase agreements 378   419   332   405   654 
Federal Home Loan Bank advances 9,537   13,190   11,048   8,047   8,638 
Subordinated debentures and other borrowings 1,426   1,318   1,203   1,040   1,093 
Total Interest Expense 102,879   101,898   97,266   98,380   101,430 
NET INTEREST INCOME 161,068   158,941   151,303   139,064   133,665 
Provision for credit losses 3,300   33,000   4,900   7,150   4,300 
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 157,768   125,941   146,403   131,914   129,365 
NONINTEREST INCOME         
Service charges on deposit accounts 9,775   9,372   9,037   8,704   8,921 
Fiduciary and wealth management fees 9,786   9,638   9,768   9,175   8,842 
Card payment fees 5,606   5,505   5,275   5,325   5,007 
Net gains and fees on sales of loans 7,428   7,742   6,511   5,421   4,983 
Derivative hedge fees 1,082   1,117   564   1,053   1,097 
Other customer fees 584   880   593   315   414 
Earnings on bank-owned life insurance 2,353   2,325   3,446   1,854   1,667 
Net loss on mortgage loans reclassified to held for sale —   —   (29,755)  —   — 
Other income 1,391   577   390   1,259   1,546 
Total Noninterest Income 38,005   37,156   5,829   33,106   32,477 
NONINTEREST EXPENSE         
Salaries and employee benefits 66,339   65,774   69,443   58,254   57,317 
Net occupancy 8,807   8,227   8,301   7,283   7,057 
Equipment 8,061   8,603   7,818   7,681   6,998 
Marketing 3,630   2,370   1,601   2,324   2,120 
Outside data processing fees 7,883   8,045   7,190   7,509   6,943 
Printing and office supplies 481   491   377   450   311 
Intangible asset amortization 2,652   2,706   2,302   1,498   1,499 
FDIC assessments 4,381   4,390   3,893   2,684   3,526 
Other real estate owned and foreclosure expenses 1,594   1,052   1,100   775   121 
Professional and other outside services 4,665   4,979   14,593   3,774   3,718 
Other expenses 7,761   8,710   8,527   7,290   6,951 
Total Noninterest Expense 116,254   115,347   125,145   99,522   96,561 
Income Before Income Taxes 79,519   47,750   27,087   65,498   65,281 
Income tax expense (benefit) 11,204   3,770   (1,069)  8,433   8,516 
NET INCOME 68,315   43,980   28,156   57,065   56,765 
Preferred stock dividends 468   469   469   469   468 
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$67,847  $43,511  $27,687  $56,596  $56,297 
PER SHARE DATA:         
Basic Net Income Available to Common Stockholders$1.09  $0.70  $0.46  $0.99  $0.98 
Diluted Net Income Available to Common Stockholders$1.09  $0.70  $0.45  $0.99  $0.98 
Cash Dividends Paid to Common Stockholders$0.37  $0.37  $0.36  $0.36  $0.36 
Tangible Common Book Value Per Share(1)$28.86  $29.80  $29.34  $30.18  $29.08 
Average Diluted Common Shares Outstanding (in thousands) 62,411   62,574   61,008   57,442   57,448 
FINANCIAL RATIOS:         
Return on Average Assets 1.30%  0.83%  0.55%  1.20%  1.22%
Return on Average Stockholders' Equity 10.07   6.44   4.17   9.23   9.51 
Return on Tangible Common Stockholders' Equity(1) 15.09   9.80   6.39   13.57   14.21 
Average Earning Assets to Average Assets 92.25   92.14   92.33   92.69   92.73 
Allowance for Credit Losses - Loans as % of Loans 1.38   1.56   1.39   1.42   1.43 
Net Charge-offs as % of Average Loans (Annualized) 0.75   0.10   0.27   0.18   0.15 
Average Stockholders' Equity to Average Assets 12.80   12.71   13.01   12.88   12.71 
Fully Taxable Equivalent (FTE) Yield on Average Earning Assets 5.56   5.46   5.41   5.52   5.58 
Interest Expense/Average Earning Assets 2.12   2.08   2.06   2.23   2.34 
Net Interest Margin FTE(1) 3.44   3.38   3.35   3.29   3.24 
Efficiency Ratio(1) 54.55   55.11   74.45   54.52   55.09 

(1) See "Non-GAAP Financial Information" for reconciliation


LOANS         
(Dollars In Thousands)September 30, June 30, March 31, December 31, September 30,
  2026   2026   2026   2025   2025 
Commercial and industrial loans$4,578,572  $4,720,441  $4,611,596  $4,478,282  $4,604,895 
Agricultural land, production and other loans to farmers 339,723   323,348   310,788   283,125   275,817 
Real estate loans:         
Construction 959,483   874,419   899,895   804,775   789,021 
Commercial real estate, non-owner occupied 3,208,902   3,271,620   3,192,337   2,338,666   2,304,889 
Commercial real estate, owner occupied 1,440,264   1,368,627   1,334,959   1,237,100   1,232,117 
Residential 2,419,376   2,361,480   2,273,860   2,420,310   2,412,783 
Home equity 1,139,040   1,118,662   1,104,739   710,980   687,021 
Individuals' loans for household and other personal expenditures 157,939   149,878   153,283   155,436   138,703 
Public finance and other commercial loans 1,357,675   1,342,262   1,380,432   1,363,033   1,145,928 
Loans 15,600,974   15,530,737   15,261,889   13,791,707   13,591,174 
Allowance for credit losses - loans (215,526)  (241,615)  (212,520)  (195,597)  (194,468)
NET LOANS$15,385,448  $15,289,122  $15,049,369  $13,596,110  $13,396,706 


DEPOSITS         
(Dollars In Thousands)September 30, June 30, March 31, December 31, September 30,
  2026  2026  2026  2025  2025
Interest-Bearing Deposits:         
Checking deposits$4,768,669 $4,738,680 $4,261,269 $5,633,210 $5,545,127
Money market deposits 4,780,359  4,632,564  4,761,930  4,219,226  3,908,199
Savings deposits 1,380,813  1,410,997  1,442,596  1,262,560  1,256,508
Certificates and other time deposits 2,246,101  2,139,304  2,271,543  2,042,597  2,059,575
Total Interest-Bearing Deposits(1) 13,175,942  12,921,545  12,737,338  13,157,593  12,769,409
Noninterest-bearing deposits 3,752,990  3,831,836  3,748,279  2,137,262  2,100,570
TOTAL DEPOSITS$16,928,932 $16,753,381 $16,485,617 $15,294,855 $14,869,979

(1) Total Interest-Bearing Deposits contain brokered deposits of $1.4 billion, which includes brokered CDs of $409.8 million at September 30, 2026.


CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars In Thousands)           
 Three Months Ended
 September 30, 2026 September 30, 2025
 Average Balance Interest
Income /
Expense		 Average
Rate		 Average Balance Interest
Income /
Expense		 Average
Rate
ASSETS           
Interest-bearing deposits$234,715 $1,308 2.23% $229,271 $1,676 2.92%
Federal Home Loan Bank stock 70,805  1,578 8.91   47,278  1,092 9.24 
Investment Securities:(1)           
Taxable 1,434,474  7,331 2.04   1,567,594  8,288 2.11 
Tax-exempt(2) 2,005,985  15,543 3.10   2,036,379  15,772 3.10 
Total Investment Securities 3,440,459  22,874 2.66   3,603,973  24,060 2.67 
Loans held for sale 78,320  1,600 8.17   26,165  401 6.13 
Loans:(3)           
Commercial 10,915,052  177,309 6.50   9,165,241  158,469 6.92 
Real estate mortgage 2,215,960  27,989 5.05   2,217,524  25,676 4.63 
HELOC and installment 1,317,354  23,174 7.04   851,239  15,860 7.45 
Tax-exempt(2) 1,159,703  14,375 4.96   1,142,210  14,070 4.93 
Total Loans, including loans held for sale 15,686,389  244,447 6.23   13,402,379  214,476 6.40 
Total Earning Assets 19,432,368  270,207 5.56%  17,282,901  241,304 5.58%
Total Non-Earning Assets 1,633,392      1,354,680    
TOTAL ASSETS$21,065,760     $18,637,581    
LIABILITIES           
Interest-Bearing Deposits:           
Checking deposits$4,774,656 $35,524 2.98% $5,600,373 $37,463 2.68%
Money market deposits 4,702,730  33,686 2.87   3,843,537  31,709 3.30 
Savings deposits 1,396,706  2,311 0.66   1,269,539  2,605 0.82 
Certificates and other time deposits 2,249,894  19,792 3.52   2,036,704  19,044 3.74 
Total Interest-Bearing Deposits 13,123,986  91,313 2.78   12,750,153  90,821 2.85 
Borrowings 1,191,522  11,566 3.88   1,072,145  10,609 3.96 
Total Interest-Bearing Liabilities 14,315,508  102,879 2.87   13,822,298  101,430 2.94 
Noninterest-bearing deposits 3,761,379      2,157,708    
Other liabilities 292,930      289,604    
Total Liabilities 18,369,817      16,269,610    
STOCKHOLDERS' EQUITY 2,695,943      2,367,971    
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$21,065,760     $18,637,581    
    Net Interest Income (FTE)  $167,328     $139,874  
    Net Interest Spread (FTE)(4)    2.69%     2.64%
            
Net Interest Margin (FTE):           
Interest Income (FTE) / Average Earning Assets    5.56%     5.58%
Interest Expense / Average Earning Assets    2.12%     2.34%
    Net Interest Margin (FTE)(5)    3.44%     3.24%
            
(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 $6.3 million and $6.2 million for the three months ended September 30, 2026 and 2025, respectively. See "Non-GAAP Financial Information" for reconciliation.
(3) Nonaccrual 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. See "Non-GAAP Financial Information" for reconciliation.
(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. See "Non-GAAP Financial Information" for reconciliation.
 


            
CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars In Thousands)           
 Nine Months Ended
 September 30, 2026 September 30, 2025
 Average Balance Interest
Income /
Expense		 Average
Rate		 Average Balance Interest
Income /
Expense		 Average
Rate
ASSETS           
Interest-bearing deposits$225,198 $3,699 2.19% $258,396 $5,940 3.07%
Federal Home Loan Bank stock 68,147  5,068 9.92   45,964  3,172 9.20 
Investment Securities:(1)           
Taxable 1,467,054  22,233 2.02   1,602,343  24,926 2.07 
Tax-exempt(2) 2,030,587  47,258 3.10   2,041,755  47,459 3.10 
Total Investment Securities 3,497,641  69,491 2.65   3,644,098  72,385 2.65 
Loans held for sale 176,072  7,568 5.73   24,175  1,109 6.12 
Loans:(3)           
Commercial 10,655,628  514,636 6.44   8,982,171  460,349 6.83 
Real estate mortgage 2,239,083  82,763 4.93   2,203,263  75,184 4.55 
HELOC and installment 1,241,618  65,263 7.01   838,420  46,665 7.42 
Tax-exempt(2) 1,184,957  43,912 4.94   1,138,814  41,079 4.81 
Total Loans, including loans held for sale 15,497,358  714,142 6.14   13,186,843  624,386 6.31 
Total Earning Assets 19,288,344  792,400 5.48%  17,135,301  705,883 5.49%
Total Non-Earning Assets 1,622,885      1,361,817    
TOTAL ASSETS$20,911,229     $18,497,118    
LIABILITIES           
Interest-Bearing Deposits:           
Checking deposits$4,904,249 $96,544 2.62% $5,556,274 $107,372 2.58%
Money market deposits 4,667,252  99,003 2.83   3,633,314  86,375 3.17 
Savings deposits 1,397,781  6,823 0.65   1,283,856  7,563 0.79 
Certificates and other time deposits 2,245,010  59,290 3.52   1,996,406  54,299 3.63 
Total Interest-Bearing Deposits 13,214,292  261,660 2.64   12,469,850  255,609 2.73 
Borrowings 1,412,602  40,383 3.81   1,194,498  34,790 3.88 
Total Interest-Bearing Liabilities 14,626,894  302,043 2.76   13,664,348  290,399 2.83 
Noninterest-bearing deposits 3,323,359      2,185,044    
Other liabilities 276,180      298,008    
Total Liabilities 18,226,433      16,147,400    
STOCKHOLDERS' EQUITY 2,684,796      2,349,718    
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$20,911,229     $18,497,118    
    Net Interest Income (FTE)  $490,357     $415,484  
    Net Interest Spread (FTE)(4)    2.72%     2.66%
            
Net Interest Margin (FTE):           
Interest Income (FTE) / Average Earning Assets    5.48%     5.49%
Interest Expense / Average Earning Assets    2.09%     2.26%
    Net Interest Margin (FTE)(5)    3.39%     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 $19.0 million and $18.5 million for the nine months ended September 30, 2026 and 2025, respectively. See "Non-GAAP Financial Information" for reconciliation.
(3) Nonaccrual 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. See "Non-GAAP Financial Information" for reconciliation.
(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. See "Non-GAAP Financial Information" for reconciliation.
 


ADJUSTED NET INCOME AND DILUTED EARNINGS PER COMMON SHARE (NON-GAAP)
(Dollars In Thousands, Except Per Share Amounts)Three Months Ended Nine Months Ended
 September 30, June 30, March 31, December 31, September 30, September 30, September 30,
  2026   2026   2026   2025   2025   2026   2025 
Net Income Available to Common Stockholders (GAAP)$67,847  $43,511  $27,687  $56,596  $56,297  $139,045  $167,530 
Adjustments:             
Net realized losses on sales of available for sale securities —   —   —   —   —   —   8 
Net loss on mortgage loans reclassified to held for sale —   —   29,755   —   —   29,755   — 
Acquisition-related expenses 862   3,830   16,968   524   276   21,660   276 
Non-core expenses(1)(2) —   —   —   (743)  633   —   633 
Tax on adjustments (208)  (925)  (11,279)  53   (220)  (12,412)  (222)
Adjusted Net Income Available to Common Stockholders (non-GAAP)$68,501  $46,416  $63,131  $56,430  $56,986  $178,048  $168,225 
              
Average Diluted Common Shares Outstanding (in thousands) 62,411   62,574   61,008   57,442   57,448   62,003   57,817 
              
Diluted Earnings Per Common Share (GAAP)$1.09  $0.70  $0.45  $0.99  $0.98  $2.24  $2.90 
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 0.01   0.06   0.28   —   —   0.35   — 
Non-core expenses(1)(2) —   —   —   (0.01)  0.01   —   0.01 
Tax on adjustments —   (0.02)  (0.19)  —   —   (0.20)  — 
Adjusted Diluted Earnings Per Common Share (non-GAAP)$1.10  $0.74  $1.03  $0.98  $0.99  $2.87  $2.91 

(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 and Nine 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 Nine Months Ended
 September 30, June 30, March 31, December 31, September 30, September 30, September 30,
  2026   2026   2026   2025   2025   2026   2025 
Net Interest Income (GAAP)$161,068  $158,941  $151,303  $139,064  $133,665  $471,312  $396,949 
Noninterest Income (GAAP) 38,005   37,156   5,829   33,106   32,477   80,990   93,828 
Total Revenue 199,073   196,097   157,132   172,170   166,142   552,302   490,777 
Noninterest Expense (GAAP) 116,254   115,347   125,145   99,522   96,561   356,746   283,061 
Pre-Tax, Pre-Provision Earnings (non-GAAP) 82,819   80,750   31,987   72,648   69,581   195,556   207,716 
Provision for Credit Losses (GAAP) 3,300   33,000   4,900   7,150   4,300   41,200   14,100 
Income Tax Expense (Benefit) (GAAP) 11,204   3,770   (1,069)  8,433   8,516   13,905   24,680 
Net Income (GAAP)$68,315  $43,980  $28,156  $57,065  $56,765  $140,451  $168,936 
              
Pre-Tax, Pre-Provision Earnings (non-GAAP) 82,819   80,750   31,987   72,648   69,581   195,556   207,716 
Net realized losses on sales of available for sale securities —   —   —   —   —   —   8 
Net loss on mortgage loans reclassified to held for sale —   —   29,755   —   —   29,755   — 
Acquisition-related expenses 862   3,830   16,968   524   276   21,660   276 
Non-core expenses(1)(2)(non-GAAP) —   —   —   (743)  633   —   633 
Adjusted Pre-Tax, Pre-Provision ("Adjusted PTPP") Earnings (non-GAAP)$83,681  $84,580  $78,710  $72,429  $70,490  $246,971  $208,633 
              
Average Assets (GAAP)$21,065,760  $21,253,171  $20,407,523  $19,039,989  $18,637,581  $20,911,229  $18,497,118 
Average Equity (GAAP)$2,695,943  $2,702,249  $2,655,756  $2,452,005  $2,367,971  $2,684,796  $2,349,718 
              
Adjusted PTPP / Average Assets (Adjusted PTPP ROA) 1.59%  1.59%  1.54%  1.52%  1.51%  1.57%  1.50%
Adjusted PTPP / Average Equity (Adjusted PTPP ROE) 12.42%  12.52%  11.86%  11.82%  11.91%  12.27%  11.84%

(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 and Nine Months Ended September 30, 2025 included $0.6 million of severance costs


NET INTEREST SPREAD AND MARGIN (FTE ADJUSTED) (NON-GAAP)        
(Dollars in Thousands)        
 Three Months Ended Nine Months Ended
 September 30, June 30, March 31, December 31, September 30, September 30, September 30,
  2026   2026   2026   2025   2025   2026   2025 
Interest income (GAAP)$263,947  $260,839  $248,569  $237,444  $235,095  $773,355  $687,348 
FTE adjustment 6,260   6,391   6,394   6,185   6,209   19,045   18,535 
Interest Income (FTE) (non-GAAP) 270,207   267,230   254,963   243,629   241,304   792,400   705,883 
Interest Expense (GAAP) 102,879   101,898   97,266   98,380   101,430   302,043   290,399 
Net Interest Income (FTE) (non-GAAP)$167,328  $165,332  $157,697  $145,249  $139,874  $490,357  $415,484 
              
Average Earning Assets (GAAP)$19,432,368  $19,583,204  $18,842,984  $17,648,233  $17,282,901  $19,288,344  $17,135,301 
Average Interest-Bearing Liabilities (GAAP)$14,315,508  $14,553,001  $15,019,911  $14,109,091  $13,822,298  $14,626,894  $13,664,348 
              
Net Interest Spread (GAAP) 2.56%  2.53%  2.69%  2.59%  2.50%  2.59%  2.51%
FTE adjustment 0.13%  0.13%  0.13%  0.14%  0.14%  0.13%  0.15%
Net Interest Spread (FTE) (non-GAAP) 2.69%  2.66%  2.82%  2.73%  2.64%  2.72%  2.66%
              
Net Interest Margin (GAAP) 3.32%  3.25%  3.21%  3.15%  3.09%  3.26%  3.09%
FTE adjustment 0.12%  0.13%  0.14%  0.14%  0.15%  0.13%  0.14%
Net Interest Margin (FTE) (non-GAAP) 3.44%  3.38%  3.35%  3.29%  3.24%  3.39%  3.23%
                            


EFFICIENCY RATIO (NON-GAAP)             
(Dollars In Thousands)Three Months Ended Nine Months Ended
 September 30, June 30, March 31, December 31, September 30, September 30, September 30,
  2026   2026   2026   2025   2025   2026   2025 
Noninterest Expense (GAAP)$116,254  $115,347  $125,145  $99,522  $96,561  $356,746  $283,061 
Less: Intangible asset amortization (2,652)  (2,706)  (2,302)  (1,498)  (1,499)  (7,660)  (4,530)
Less: OREO and foreclosure expenses (1,594)  (1,052)  (1,100)  (775)  (121)  (3,746)  (750)
Adjusted Noninterest Expense (non-GAAP)$112,008  $111,589  $121,743  $97,249  $94,941  $345,340  $277,781 
              
Net Interest Income (GAAP)$161,068  $158,941  $151,303  $139,064  $133,665  $471,312  $396,949 
Plus: Fully taxable equivalent adjustment 6,260   6,391   6,394   6,185   6,209   19,045   18,535 
Net Interest Income on a Fully Taxable Equivalent Basis (non-GAAP)$167,328  $165,332  $157,697  $145,249  $139,874  $490,357  $415,484 
              
Noninterest Income (GAAP)$38,005  $37,156  $5,829  $33,106  $32,477  $80,990  $93,828 
Less: Investment securities (gains) losses —   —   —   —   —   —   8 
Adjusted Noninterest Income (non-GAAP)$38,005  $37,156  $5,829  $33,106  $32,477  $80,990  $93,836 
Adjusted Revenue (non-GAAP)$205,333  $202,488  $163,526  $178,355  $172,351  $571,347  $509,320 
Efficiency Ratio (non-GAAP) 54.55%  55.11%  74.45%  54.52%  55.09%  60.44%  54.54%
              
Adjusted Noninterest Expense (non-GAAP)$112,008  $111,589  $121,743  $97,249  $94,941  $345,340  $277,781 
Less: Acquisition-related expenses (862)  (3,830)  (16,968)  (524)  (276)  (21,660)  (276)
Less: Non-core expenses(1)(2) —   —   —   743   (633)  —   (633)
Adjusted Noninterest Expense Excluding Non-core Expenses (non-GAAP)$111,146  $107,759  $104,775  $97,468  $94,032  $323,680  $276,872 
              
Adjusted Revenue (non-GAAP)$205,333  $202,488  $163,526  $178,355  $172,351  $571,347  $509,320 
Add: Net loss on mortgage loans reclassified to held for sale —   —   29,755   —   —   29,755   — 
Adjusted Revenue Excluding Net loss on mortgage loans reclassified to held for sale (non-GAAP)$205,333  $202,488  $193,281  $178,355  $172,351  $601,102  $509,320 
Adjusted Efficiency Ratio (non-GAAP) 54.13%  53.22%  54.21%  54.65%  54.56%  53.85%  54.36%

(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 and Nine Months Ended September 30, 2025 included $0.6 million of severance costs


TANGIBLE COMMON EQUITY (NON-GAAP)        
(Dollars In Thousands)September 30, June 30, March 31, December 31, September 30,
  2026   2026   2026   2025   2025 
Total Stockholders' Equity (GAAP)$2,636,381  $2,697,177  $2,672,565  $2,466,667  $2,412,402 
Less: Preferred stock (25,125)  (25,125)  (25,125)  (25,125)  (25,125)
Less: Intangible assets (824,506)  (827,158)  (824,467)  (725,802)  (727,300)
Tangible Common Equity (non-GAAP)$1,786,750  $1,844,894  $1,822,973  $1,715,740  $1,659,977 
          
Total Assets (GAAP)$21,056,722  $21,348,765  $21,072,521  $19,025,101  $18,811,629 
Less: Intangible assets (824,506)  (827,158)  (824,467)  (725,802)  (727,300)
Tangible Assets (non-GAAP)$20,232,216  $20,521,607  $20,248,054  $18,299,299  $18,084,329 
          
Tangible Common Equity Ratio (non-GAAP) 8.83%  8.99%  9.00%  9.38%  9.18%


TANGIBLE COMMON EQUITY PER COMMON SHARE (NON-GAAP)      
(Dollars In Thousands, Except Per Share Amounts)September 30, June 30, March 31, December 31, September 30,
  2026   2026   2026   2025   2025 
Total Stockholders' Equity (GAAP)$2,636,381  $2,697,177  $2,672,565  $2,466,667  $2,412,402 
Less: Preferred stock (25,125)  (25,125)  (25,125)  (25,125)  (25,125)
Less: Intangible assets (824,506)  (827,158)  (824,467)  (725,802)  (727,300)
Plus: Tax benefit 8,470   9,084   11,069   2,966   3,290 
Tangible Common Equity, Net of Tax (non-GAAP)$1,795,220  $1,853,978  $1,834,042  $1,718,706  $1,663,267 
          
Common Shares Outstanding 62,210,134   62,205,528   62,508,055   56,951,939   57,192,497 
          
Tangible Common Equity per Share, Net of Tax (non-GAAP)$28.86  $29.80  $29.34  $30.18  $29.08 


RETURN ON TANGIBLE COMMON EQUITY (NON-GAAP)
(Dollars In Thousands)Three Months Ended Nine Months Ended
 September 30, June 30, March 31, December 31, September 30, September 30, September 30,
  2026   2026   2026   2025   2025   2026   2025 
Total Average Stockholders' Equity (GAAP)$2,695,943  $2,702,249  $2,655,756  $2,452,005  $2,367,971  $2,684,796  $2,349,718 
Less: Average preferred stock (25,125)  (25,125)  (25,125)  (25,125)  (25,125)  (25,125)  (25,125)
Less: Average intangible assets, net of tax (817,139)  (813,608)  (784,490)  (723,466)  (724,619)  (805,198)  (725,775)
Average Tangible Common Equity, Net of Tax (non-GAAP)$1,853,679  $1,863,516  $1,846,141  $1,703,414  $1,618,227  $1,854,473  $1,598,818 
              
Net Income Available to Common Stockholders (GAAP)$67,847  $43,511  $27,687  $56,596  $56,297  $139,045  $167,530 
Plus: Intangible asset amortization, net of tax 2,095   2,137   1,819   1,183   1,185   6,051   3,579 
Tangible Net Income (non-GAAP)$69,942  $45,648  $29,506  $57,779  $57,482  $145,096  $171,109 
              
Return on Tangible Common Equity (non-GAAP) 15.09%  9.80%  6.39%  13.57%  14.21%  10.43%  14.27%
                            


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


Primary Logo

Source: First Merchants Corporation
← Back to FRME news