First Merchants Corporation Announces Third Quarter 2026 Results

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