GlobeNewswire Inc | Jan 27, 2022 08:00AM EST

January 27, 2022

MUNCIE, Ind., Jan. 27, 2022 (GLOBE NEWSWIRE) -- First Merchants Corporation (NASDAQ - FRME) has reported fourth quarter 2021 net income of $47.7 million compared to $45.1 million during the same period in 2020. Earnings per share for the period totaled $.89 per share compared to the fourth quarter 2020 result of $.83 per share. Net income for the year ended December 31, 2021 totaled $205.5 million, compared to $148.6 million during the same period in 2020. Year-to-date earnings per share totaled $3.81 compared to $2.74 in 2020.

Total assets equaled $15.5 billion as of year-end and loans totaled $9.3 billion. The Corporation experienced organic loan growth of $566 million, or 6.6 percent, during 2021. This was offset by the forgiveness of Paycheck Protection Program (PPP) loans of $560 million, resulting in net loan growth of $6 million. Investments increased $1.4 billion, or 43.8 percent, during the year and now total $4.5 billion. Total deposits equaled $12.7 billion as of year-end and increased by $1.4 billion, or 12.1 percent, during 2021.

The Corporations Allowance for Credit Losses Loans (ACL) totaled $195.4 million as of year-end, or 2.11 percent of total loans. Net charge-offs for the quarter totaled $4.6 million and no provision expense was recorded during the quarter or during the year ended 2021. Provision expense taken during the three and twelve months ended December 31, 2020 of $4.5 million and $58.7 million, respectively, reflected our view of increased credit risk in 2020 related to the COVID-19 pandemic. An increase of $74.1 million in the ACL was also recorded on January 1, 2021 reflecting the adoption of the current expected credit losses (CECL) model. Non-accrual loans totaled $43.1 million as of year-end.

Mark Hardwick, Chief Executive Officer, stated, 2021 proved to be a record year on many levels, including total assets, loans, deposits, net income and earnings per share. Our employees, customers and communities showed an incredible amount of toughness, determination, teamwork and compassion for one another during a difficult year. First Merchants future is bright because of this special combination of heart and grit. Hardwick also added, Its an honor to lead this First Merchants team and to be part of the dynamic markets that we serve.

Net-interest income totaled $410.7 million for the year, an increase of $28.6 million or 7.5 percent, in the face of a net-interest margin decline of 11 basis points to 3.18 percent, reflecting an asset sensitive balance sheet. Yield on earning assets declined by 40 basis points totaling 3.44 percent offset by a decline of 29 basis points in the cost of supporting liabilities, which totaled 26 basis points for the year-ended 2021. Yield on earning assets for the fourth quarter totaled 3.29 percent with cost of supporting liabilities totaling 25 basis points, resulting in a margin of 3.04 percent. PPP loans contributed 8 basis points to margin during the fourth quarter of 2021, which was a decline of 9 basis points from the third quarter 2021 and a decline of 8 basis points from the fourth quarter of 2020, as the pace of PPP loan forgiveness slowed.

Non-interest income totaled $109.3 million for the year, a $0.6 million decline from 2020. Customer-related line items accounted for an increase of $2.6 million, or 3 percent, and was offset by a decline of $6.2 million on the gains on sales of securities. Fiduciary and wealth management fees hit a record high of $28.4 million for 2021, which included an increase of $1 million from the acquisition of Hoosier Trust Company. This was offset by the headwinds of the full year impact of the Durbin Amendment adoption on card payment fees which was effective July of 2020.

Non-interest expense totaled $279.2 million for the year ended 2021, a $15.8 million increase from 2020. The increase is primarily due to higher salaries, incentives, and employee benefits costs.

The Corporations loan to deposit ratio now totals 73 percent and loan to asset ratio totals 60 percent. Additionally, the Corporations total risk-based capital ratio equaled 13.92 percent, common equity tier 1 capital ratio equaled 11.68 percent, and the tangible common equity ratio totaled 9.01 percent. These ratios continue to reflect the Corporations strong liquidity and capital positions.

CONFERENCE CALL

First Merchants Corporation will conduct a fourth quarter earnings conference call and web cast at 2:30 p.m. (ET) on Thursday, January 27, 2022.

To participate, dial (Toll Free) 877-806-2932 and reference Conference ID 2169777. International callers please call +1 478-219-0639.

In order to view the webcast and presentation slides, please go to https://edge.media-server.com/mmc/p/i8985qq2during the time of the call. A replay of the webcast will be available until January 27, 2023.

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 Corporations 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 companys 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 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 statements include statements of First Merchants goals, intentions and expectations; statements regarding the First Merchants business plan and growth strategies; statements regarding the asset quality of First Merchants loan and investment portfolios; and estimates of First Merchants risks and future costs and benefits. 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: 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, credit and interest rate risks associated with the First Merchants business; and other risks and factors identified in each of First Merchants filings with the Securities and Exchange Commission. First Merchants does not undertake any obligation to update any forward-looking statement, whether written or oral, relating to the matters discussed in this press release. In addition, First Merchants past results of operations do not necessarily indicate its anticipated future results.

SOURCE: First Merchants Corporation, Muncie, Indiana

For more information, contact:Nicole M. Weaver, Vice President and Director of Corporate Administration765-521-7619 http://www.firstmerchants.com

CONSOLIDATED BALANCE SHEETS (Dollars In Thousands) December 31, 2021 2020 ASSETS Cash and cash equivalents $ 167,146 $ 192,896 Interest-bearing deposits 474,154 392,305 Investment securities, net of allowance 4,524,353 3,146,787 for credit losses of $245,000 and $0Loans held for sale 11,187 3,966 Loans 9,241,861 9,243,174 Less: Allowance for credit losses (195,397 ) (130,648 )- loans Net loans 9,046,464 9,112,526 Premises and equipment 105,655 111,062 Federal Home Loan Bank stock 28,736 28,736 Interest receivable 57,187 53,948 Goodwill and other intangibles 570,860 572,893 Cash surrender value of life insurance 291,041 292,745 Other real estate owned 558 940 Tax asset, deferred and receivable 35,641 12,340 Other assets 140,167 146,066 TOTAL ASSETS $ 15,453,149 $ 14,067,210 LIABILITIES Deposits: Noninterest-bearing $ 2,709,646 $ 2,298,138 Interest-bearing 10,022,931 9,063,472 Total Deposits 12,732,577 11,361,610 Borrowings: Securities sold under repurchase 181,577 177,102 agreements Federal Home Loan Bank advances 334,055 389,430 Subordinated debentures and other 118,618 118,380 borrowings Total Borrowings 634,250 684,912 Interest payable 2,762 3,287 Other liabilities 170,989 141,756 Total Liabilities 13,540,578 12,191,565 STOCKHOLDERS' EQUITY Cumulative Preferred Stock, $1,000 par value, $1,000 liquidation value: Authorized -- 600 shares Issued and outstanding - 125 shares 125 125 Common Stock, $.125 stated value: Authorized -- 100,000,000 shares Issued and outstanding - 53,410,411 and 6,676 6,740 53,922,359 sharesAdditional paid-in capital 985,818 1,005,366 Retained earnings 864,839 788,578 Accumulated other comprehensive income 55,113 74,836 Total Stockholders' Equity 1,912,571 1,875,645 TOTAL LIABILITIES AND $ 15,453,149 $ 14,067,210 STOCKHOLDERS' EQUITY

CONSOLIDATED STATEMENTS OF Three Months Ended Twelve Months EndedINCOME(Dollars In Thousands, Except December 31, December 31,Per Share Amounts) 2021 2020 2021 2020INTEREST INCOME Loans receivable: Taxable $ 80,583 $ 90,138 $ 338,009 $ 358,264 Tax-exempt 5,635 5,414 22,110 21,483Investment securities: Taxable 8,028 5,263 29,951 24,440 Tax-exempt 15,411 12,056 55,331 42,341Deposits with financial 173 139 634 938institutionsFederal Home Loan Bank stock 163 214 597 1,042 Total Interest Income 109,993 113,224 446,632 448,508INTEREST EXPENSE Deposits 5,589 7,509 23,319 51,740Federal funds purchased 1 2 5 120Securities sold under 75 77 314 604repurchase agreementsFederal Home Loan Bank advances 1,389 1,656 5,672 6,973Subordinated debentures and 1,666 1,669 6,642 6,944other borrowings Total Interest 8,720 10,913 35,952 66,381ExpenseNET INTEREST INCOME 101,273 102,311 410,680 382,127Provision for credit losses - ? 4,482 ? 58,673loansNET INTEREST INCOME AFTER 101,273 97,829 410,680 323,454PROVISION FOR CREDIT LOSSESOTHER INCOME Service charges on deposit 6,462 5,508 23,571 20,999accountsFiduciary and wealth management 7,078 6,251 28,362 23,747feesCard payment fees 3,937 3,502 16,619 19,502Net gains and fees on sales of 3,423 5,393 19,689 18,271loansDerivative hedge fees 1,562 2,281 3,850 6,977Other customer fees 361 394 1,490 1,497Earnings on cash surrender 2,051 1,283 7,060 5,140value of life insuranceNet realized gains on sales of 358 2,398 5,674 11,895available for sale securitiesOther income 615 473 3,008 1,898 Total Other Income 25,847 27,483 109,323 109,926OTHER EXPENSES Salaries and employee benefits 42,432 41,809 166,995 155,937Net occupancy 5,644 9,653 23,326 26,756Equipment 4,994 5,555 19,401 19,344Marketing 1,840 1,763 5,762 6,609Outside data processing fees 4,581 3,839 18,317 14,432Printing and office supplies 356 307 1,217 1,304Intangible asset amortization 1,463 1,476 5,747 5,987FDIC assessments 1,862 1,560 6,243 5,804Other real estate owned and 171 (1,576 ) 992 330foreclosure expensesProfessional and other outside 3,627 2,836 11,913 8,901servicesOther expenses 5,466 5,314 19,300 18,001 Total Other Expenses 72,436 72,536 279,213 263,405INCOME BEFORE INCOME TAX 54,684 52,776 240,790 169,975Income tax expense 6,951 7,641 35,259 21,375NET INCOME AVAILABLE TO COMMON $ 47,733 $ 45,135 $ 205,531 $ 148,600STOCKHOLDERSPer Share Data: Basic Net Income Available to $ 0.89 $ 0.83 $ 3.82 $ 2.75Common StockholdersDiluted Net Income Available to $ 0.89 $ 0.83 $ 3.81 $ 2.74Common StockholdersCash Dividends Paid $ 0.29 $ 0.26 $ 1.13 $ 1.04Average Diluted Shares 53,660 54,050 53,984 54,220Outstanding (in thousands)

FINANCIAL HIGHLIGHTS(Dollars in Three Months Ended Twelve Months Endedthousands) December 31, December 31, 2021 2020 2021 2020 NET $ 4,575 $ 560 $ 9,306 $ 8,309 CHARGE-OFFS AVERAGE BALANCES:Total Assets $ 15,298,655 $ 13,968,047 $ 14,830,397 $ 13,466,269 Total Loans 9,076,652 9,240,304 9,170,650 9,051,155 Total Earning 14,053,310 12,663,803 13,579,113 12,123,317 AssetsTotal 12,647,737 11,283,040 12,176,231 10,728,106 DepositsTotalStockholders' 1,890,229 1,856,896 1,866,632 1,825,135 Equity FINANCIAL RATIOS:Return onAverage 1.25 % 1.29 % 1.39 % 1.10 %AssetsReturn onAverage 10.10 9.72 11.01 8.14 Stockholders'EquityReturn onAverageCommon 10.10 9.72 11.01 8.14 Stockholders'EquityAverageEarningAssets to 91.86 90.66 91.56 90.03 AverageAssetsAllowance forCredit Losses- Loans as % 2.11 1.41 2.11 1.41 of TotalLoansNetCharge-offsas % of 0.20 0.02 0.10 0.09 Average Loans(Annualized)AverageStockholders'Equity to 12.36 13.29 12.59 13.55 AverageAssetsTaxEquivalentYield on 3.29 3.72 3.44 3.84 AverageEarningAssetsInterestExpense/Average 0.25 0.34 0.26 0.55 EarningAssetsNet InterestMargin (FTE)on Average 3.04 3.38 3.18 3.29 EarningAssetsEfficiency 53.49 55.01 50.94 51.71 RatioTangibleCommon Book $ 25.21 $ 24.27 $ 25.21 $ 24.27 Value PerShare

NON-PERFORMING ASSETS(Dollars In December 31, September 30, June 30, March 31, December 31,Thousands) 2021 2021 2021 2021 2020 Non-Accrual $ 43,062 $ 51,502 $ 57,556 $ 57,923 $ 61,471 LoansRenegotiated 329 439 629 655 3,240 LoansNon-Performing 43,391 51,941 58,185 58,578 64,711 Loans (NPL)Other RealEstate Owned 558 698 601 604 940 andRepossessionsNon-Performing 43,949 52,639 58,786 59,182 65,651 Assets (NPA)90+ Days 963 157 183 1,093 746 DelinquentNPAs & 90 Day $ 44,912 $ 52,796 $ 58,969 $ 60,275 $ 66,397 Delinquent Allowance forCredit Losses $ 195,397 $ 199,972 $ 199,775 $ 201,082 $ 130,648 - LoansQuarterly Net 4,575 (197 ) 1,307 3,621 560 Charge-offsNPAs / Actual 0.28 % 0.35 % 0.39 % 0.40 % 0.47 %Assets %NPAs & 90 Day/ Actual 0.29 % 0.35 % 0.40 % 0.41 % 0.47 %Assets %NPAs / ActualLoans and OREO 0.47 % 0.58 % 0.64 % 0.63 % 0.71 %%Allowance forCredit Losses- Loans / 2.11 % 2.21 % 2.19 % 2.16 % 1.41 %Actual Loans(%)NetCharge-offs as% of Average 0.20 % (0.01 )% 0.06 % 0.16 % 0.02 %Loans(Annualized)

CONSOLIDATED BALANCE SHEETS(Dollars In December 31, September 30, June 30, March 31, December 31,Thousands) 2021 2021 2021 2021 2020 ASSETS Cash and cash $ 167,146 $ 169,261 $ 167,596 $ 187,901 $ 192,896 equivalentsInterest-bearing 474,154 369,447 438,863 392,806 392,305 depositsInvestmentsecurities, net of 4,524,353 4,445,516 4,148,314 3,700,857 3,146,787 allowance forcredit lossesLoans held for sale 11,187 5,990 18,582 4,430 3,966 Loans 9,241,861 9,041,576 9,121,250 9,318,228 9,243,174 Less:Allowance for (195,397 ) (199,972 ) (199,775 ) (201,082 ) (130,648 )credit losses -loans Net 9,046,464 8,841,604 8,921,475 9,117,146 9,112,526 loansPremises and 105,655 104,814 103,822 109,432 111,062 equipmentFederal Home Loan 28,736 28,736 28,736 28,736 28,736 Bank stockInterest receivable 57,187 53,079 54,173 54,662 53,948 Goodwill and other 570,860 572,323 573,786 571,536 572,893 intangiblesCash surrendervalue of life 291,041 291,825 294,462 293,766 292,745 insuranceOther real estate 558 698 601 604 940 ownedTax asset, deferred 35,641 39,504 36,924 40,163 12,340 and receivableOther assets 140,167 137,928 135,763 127,027 146,066 TOTAL $ 15,453,149 $ 15,060,725 $ 14,923,097 $ 14,629,066 $ 14,067,210 ASSETSLIABILITIES Deposits: Noninterest-bearing $ 2,709,646 $ 2,554,323 $ 2,479,853 $ 2,494,891 $ 2,298,138 Interest-bearing 10,022,931 9,794,366 9,723,547 9,456,889 9,063,472 Total 12,732,577 12,348,689 12,203,400 11,951,780 11,361,610 DepositsBorrowings: Securities soldunder repurchase 181,577 183,589 146,904 185,721 177,102 agreementsFederal Home Loan 334,055 334,149 334,243 359,337 389,430 Bank advancesSubordinateddebentures and 118,618 118,558 118,498 118,439 118,380 other borrowings Total 634,250 636,296 599,645 663,497 684,912 BorrowingsInterest payable 2,762 3,736 2,929 4,020 3,287 Other liabilities 170,989 203,914 245,323 203,913 141,756 Total 13,540,578 13,192,635 13,051,297 12,823,210 12,191,565 LiabilitiesSTOCKHOLDERS' EQUITYCumulativePreferred Stock,$1,000 par value, $1,000 liquidationvalue: Authorized -- 600 shares Issued and 125 125 125 125 125 outstandingCommon Stock, $.125 stated value: Authorized -- 100,000,000 shares Issued and 6,676 6,689 6,747 6,744 6,740 outstandingAdditional paid-in 985,818 988,659 1,009,182 1,007,300 1,005,366 capitalRetained earnings 864,839 832,728 795,666 755,877 788,578 Accumulated othercomprehensive 55,113 39,889 60,080 35,810 74,836 income TotalStockholders' 1,912,571 1,868,090 1,871,800 1,805,856 1,875,645 Equity TOTALLIABILITIES AND $ 15,453,149 $ 15,060,725 $ 14,923,097 $ 14,629,066 $ 14,067,210 STOCKHOLDERS'EQUITY

CONSOLIDATEDSTATEMENTS OF INCOME(Dollars InThousands, December September DecemberExcept Per 31, 30, June 30, March 31, 31,ShareAmounts) 2021 2021 2021 2021 2020 INTEREST INCOMELoans receivable: Taxable $ 80,583 $ 85,319 $ 87,002 $ 85,105 $ 90,138 5,635 5,591 5,545 5,339 5,414 Tax-exemptInvestment securities: Taxable 8,028 7,788 7,440 6,695 5,263 15,411 14,464 13,071 12,385 12,056 Tax-exemptDeposits withfinancial 173 218 129 114 139 institutionsFederal HomeLoan Bank 163 168 88 178 214 stock Total 109,993 113,548 113,275 109,816 113,224 InterestIncomeINTEREST EXPENSEDeposits 5,589 5,707 5,823 6,200 7,509 Federal funds 1 ? 2 2 2 purchasedSecuritiessold under 75 77 75 87 77 repurchaseagreementsFederal HomeLoan Bank 1,389 1,389 1,452 1,442 1,656 advancesSubordinateddebentures 1,666 1,660 1,659 1,657 1,669 and otherborrowings Total 8,720 8,833 9,011 9,388 10,913 InterestExpenseNET INTEREST 101,273 104,715 104,264 100,428 102,311 INCOMEProvision forcredit losses ? ? ? ? 4,482 - loansNET INTERESTINCOME AFTER 101,273 104,715 104,264 100,428 97,829 PROVISION FORCREDIT LOSSESOTHER INCOME Servicecharges on 6,462 6,249 5,596 5,264 5,508 depositaccountsFiduciary andwealth 7,078 7,352 7,510 6,422 6,251 managementfeesCard payment 3,937 4,156 4,159 4,367 3,502 feesNet gains andfees on sales 3,423 3,955 8,325 3,986 5,393 of loansDerivative 1,562 1,028 943 317 2,281 hedge feesOther 361 393 368 368 394 customer feesEarnings oncashsurrender 2,051 2,468 1,205 1,336 1,283 value of lifeinsuranceNet realizedgains onsales of 358 1,756 1,761 1,799 2,398 available forsalesecuritiesOther income 615 1,144 1,017 232 473 Total Other 25,847 28,501 30,884 24,091 27,483 IncomeOTHER EXPENSESSalaries andemployee 42,432 43,314 42,438 38,811 41,809 benefitsNet occupancy 5,644 5,576 5,615 6,491 9,653 Equipment 4,994 4,529 4,848 5,030 5,555 Marketing 1,840 1,676 1,122 1,124 1,763 Outside dataprocessing 4,581 4,794 4,698 4,244 3,839 feesPrinting andoffice 356 265 313 283 307 suppliesIntangibleasset 1,463 1,463 1,464 1,357 1,476 amortizationFDIC 1,862 1,552 1,461 1,368 1,560 assessmentsOther realestate ownedand 171 (91 ) 178 734 (1,576 )foreclosureexpensesProfessionaland other 3,627 2,767 2,976 2,543 2,836 outsideservicesOther 5,466 5,539 4,182 4,113 5,314 expenses Total Other 72,436 71,384 69,295 66,098 72,536 ExpensesINCOME BEFORE 54,684 61,832 65,853 58,421 52,776 INCOME TAXIncome tax 6,951 9,062 10,294 8,952 7,641 expenseNET INCOMEAVAILABLE TO $ 47,733 $ 52,770 $ 55,559 $ 49,469 $ 45,135 COMMONSTOCKHOLDERS Per Share Data:Basic NetIncomeAvailable to $ 0.89 $ 0.98 $ 1.03 $ 0.92 $ 0.83 CommonStockholdersDiluted NetIncomeAvailable to $ 0.89 $ 0.98 $ 1.03 $ 0.91 $ 0.83 CommonStockholdersCashDividends $ 0.29 $ 0.29 $ 0.29 $ 0.26 $ 0.26 PaidAverageDilutedShares 53,660 53,960 54,184 54,134 54,050 Outstanding(inthousands)FINANCIAL RATIOS:Return onAverage 1.25 % 1.41 % 1.51 % 1.39 % 1.29 %AssetsReturn onAverage 10.10 11.17 12.04 10.75 9.72 Stockholders'EquityReturn onAverageCommon 10.10 11.17 12.04 10.75 9.72 Stockholders'EquityAverageEarningAssets to 91.86 91.57 91.87 91.43 90.66 AverageAssetsAllowance forCredit Losses- Loans as % 2.11 2.21 2.19 2.16 1.41 of TotalLoansNetCharge-offsas % of 0.20 (0.01 ) 0.06 0.16 0.02 Average Loans(Annualized)AverageStockholders'Equity to 12.36 12.59 12.51 12.92 13.29 AverageAssetsTaxEquivalentYield on 3.29 3.46 3.49 3.52 3.72 AverageEarningAssetsInterestExpense/Average 0.25 0.26 0.27 0.29 0.34 EarningAssetsNet InterestMargin (FTE)on Average 3.04 3.20 3.22 3.23 3.38 EarningAssetsEfficiency 53.49 51.18 48.91 50.23 55.01 RatioTangibleCommon Book $ 25.21 $ 24.31 $ 24.15 $ 22.98 $ 24.27 Value PerShare

LOANS (Dollars In December 31, September 30, June 30, March 31, December 31,Thousands) 2021 2021 2021 2021 2020 Commercialand $ 2,714,565 $ 2,573,615 $ 2,671,076 $ 2,876,212 $ 2,776,699 industrialloansAgriculturalland,production 246,442 240,686 235,020 245,631 281,884 and otherloans tofarmersReal estate loans:Construction 523,066 521,889 491,200 541,224 484,723 Commercialreal estate, 2,135,459 2,150,387 2,263,497 2,178,832 2,220,949 non-owneroccupiedCommercialreal estate, 986,720 952,441 953,501 950,038 958,501 owneroccupiedResidential 1,159,127 1,154,373 1,127,442 1,239,925 1,234,741 Home equity 523,754 531,307 489,997 482,229 508,259 Individuals'loans forhousehold 146,092 135,093 130,819 126,387 129,479 and otherpersonalexpendituresPublicfinance andother 806,636 781,785 758,698 677,750 647,939 commercialloansLoans 9,241,861 9,041,576 9,121,250 9,318,228 9,243,174 Allowancefor credit (195,397 ) (199,972 ) (199,775 ) (201,082 ) (130,648 )losses -loans NET $ 9,046,464 $ 8,841,604 $ 8,921,475 $ 9,117,146 $ 9,112,526 LOANS

DEPOSITS (Dollars In December 31, September 30, June 30, March 31, December 31,Thousands) 2021 2021 2021 2021 2020Demand $ 7,704,190 $ 7,317,399 $ 7,261,603 $ 7,245,850 $ 6,821,152depositsSavings 4,334,802 4,301,483 4,157,552 3,857,624 3,661,713depositsCertificatesand othertime 273,379 283,396 304,394 332,745 346,194deposits of$100,000 ormoreOthercertificates 389,752 404,010 423,922 449,655 459,168and timedepositsBrokered 30,454 42,401 55,929 65,906 73,383deposits TOTAL $ 12,732,577 $ 12,348,689 $ 12,203,400 $ 11,951,780 $ 11,361,610DEPOSITS

CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS(Dollars in Thousands) For the Three Months Ended December 31, 2021 December 31, 2020 Average Interest Average Average Interest Average Balance Income / Rate Balance Income / Rate Expense ExpenseAssets: Interest-bearing $ 558,677 $ 173 0.12 % $ 437,766 $ 139 0.13 %depositsFederal Home Loan 28,736 163 2.27 28,736 214 2.98 Bank stockInvestment Securities: ^(1)Taxable 1,936,519 8,028 1.66 1,222,916 5,263 1.72 Tax-Exempt ^(2) 2,452,726 19,508 3.18 1,734,081 15,261 3.52 TotalInvestment 4,389,245 27,536 2.51 2,956,997 20,524 2.78 SecuritiesLoans held for sale 20,688 196 3.79 19,103 200 4.19 Loans: ^(3) Commercial 6,703,241 65,867 3.93 6,925,491 73,530 4.25 Real Estate 889,571 7,866 3.54 911,042 9,482 4.16 MortgageInstallment 711,309 6,654 3.74 698,619 6,925 3.96 Tax-Exempt ^(2) 751,843 7,133 3.79 686,049 6,854 4.00 Total Loans 9,076,652 87,716 3.87 9,240,304 96,991 4.20 Total 14,053,310 115,588 3.29 % 12,663,803 117,868 3.72 %Earning Assets Total 1,245,345 1,304,244 Non-Earning Assets Total $ 15,298,655 $ 13,968,047 AssetsLiabilities: Interest-bearing deposits:Interest-bearing $ 4,912,556 $ 3,637 0.30 % $ 4,393,991 $ 3,888 0.35 %depositsMoney market 2,518,612 809 0.13 2,051,985 1,164 0.23 depositsSavingsdeposits 1,828,631 461 0.10 1,613,886 634 0.16 Certificates and 706,617 682 0.39 961,187 1,823 0.76 other time deposits TotalInterest-bearing 9,966,416 5,589 0.22 9,021,049 7,509 0.33 DepositsBorrowings 620,398 3,131 2.02 683,068 3,404 1.99 TotalInterest-bearing 10,586,814 8,720 0.33 9,704,117 10,913 0.45 LiabilitiesNoninterest-bearing 2,681,321 2,261,991 depositsOther liabilities 140,291 145,043 Total 13,408,426 12,111,151 LiabilitiesStockholders' 1,890,229 1,856,896 EquityTotal Liabilitiesand Stockholders' $ 15,298,655 8,720 $ 13,968,047 10,913 Equity NetInterest Income $ 106,868 $ 106,955 (FTE) NetInterest Spread 2.96 % 3.27 %(FTE) ^(4) Net Interest Margin (FTE):Interest Income(FTE) / Average 3.29 % 3.72 %Earning AssetsInterest Expense /Average Earning 0.25 % 0.34 %Assets NetInterest Margin 3.04 % 3.38 %(FTE) ^(5) ^(1) Average balance of securities is computed based on the average of thehistorical amortized cost balances without the effects of the fair valueadjustments. Annualized amounts are computed using a 30/360 day basis.^(2) Tax-exempt securities and loans are presented on a fully taxableequivalent basis, using a marginal tax rate of 21 percent for 2021 and 2020.These totals equal $5,595 and $4,644 for the three months ended December 31,2021 and 2020, respectively.^(3)Non accruing loans have been included in the average balances.^(4) Net Interest Spread (FTE) is interest income expressed as a percentage ofaverage earning assets minus interest expense expressed as a percentage ofaverage interest-bearing liabilities.^(5) Net Interest Margin (FTE) is interest income expressed as a percentage ofaverage earning assets minus interest expense expressed as a percentage ofaverage earning assets.

CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS(Dollars in Thousands) For the Twelve Months Ended December 31, 2021 December 31, 2020 Average Interest Average Average Interest Average Balance Income / Rate Balance Income / Rate Expense ExpenseAssets: Interest-bearing $ 521,637 $ 634 0.12 % $ 319,686 $ 938 0.29 %depositsFederal Home Loan 28,736 597 2.08 28,736 1,042 3.63 Bank stockInvestment Securities: ^(1)Taxable 1,751,910 29,951 1.71 1,282,827 24,440 1.91 Tax-Exempt ^(2) 2,106,180 70,039 3.33 1,440,913 53,596 3.72 TotalInvestment 3,858,090 99,990 2.59 2,723,740 78,036 2.87 SecuritiesLoans held for sale 19,190 747 3.89 18,559 781 4.21 Loans: ^(3) Commercial 6,818,968 276,368 4.05 6,755,215 286,773 4.25 Real Estate 916,314 34,783 3.80 889,083 40,002 4.50 MortgageInstallment 683,925 26,111 3.82 718,815 30,708 4.27 Tax-Exempt ^(2) 732,253 27,987 3.82 669,483 27,194 4.06 Total Loans 9,170,650 365,996 3.99 9,051,155 385,458 4.26 Total 13,579,113 467,217 3.44 % 12,123,317 465,474 3.84 %Earning Assets Total 1,251,284 1,342,952 Non-Earning Assets Total $ 14,830,397 $ 13,466,269 AssetsLiabilities: Interest-bearing deposits:Interest-bearing $ 4,769,482 $ 14,512 0.30 % $ 4,009,566 $ 20,239 0.50 %depositsMoney market 2,351,803 3,203 0.14 1,769,478 7,810 0.44 depositsSavingsdeposits 1,754,972 1,886 0.11 1,534,069 3,641 0.24 Certificates and 783,733 3,718 0.47 1,346,967 20,050 1.49 other time deposits TotalInterest-bearing 9,659,990 23,319 0.24 8,660,080 51,740 0.60 DepositsBorrowings 639,791 12,633 1.97 768,238 14,641 1.91 TotalInterest-bearing 10,299,781 35,952 0.35 9,428,318 66,381 0.70 LiabilitiesNoninterest-bearing 2,516,241 2,068,026 depositsOther liabilities 147,743 144,790 Total 12,963,765 11,641,134 LiabilitiesStockholders' 1,866,632 1,825,135 EquityTotal Liabilitiesand Stockholders' $ 14,830,397 35,952 $ 13,466,269 66,381 Equity NetInterest Income $ 431,265 $ 399,093 (FTE) NetInterest Spread 3.09 % 3.14 %(FTE) ^(4) Net Interest Margin (FTE):Interest Income(FTE) / Average 3.44 % 3.84 %Earning AssetsInterest Expense /Average Earning 0.26 % 0.55 %Assets NetInterest Margin 3.18 % 3.29 %(FTE) ^(5) ^(1) Average balance of securities is computed based on the average of thehistorical amortized cost balances without the effects of the fair valueadjustments. Annualized amounts are computed using a 30/360 day basis.^(2) Tax-exempt securities and loans are presented on a fully taxableequivalent basis, using a marginal tax rate of 21 percent for 2021 and 2020.These totals equal $20,585 and $16,966 for the twelve months ended December 31,2021 and 2020, respectively.^(3) Non accruingloans have been included in theaverage balances.^(4) Net Interest Spread (FTE) is interest income expressed as a percentage ofaverage earning assets minus interest expense expressed as a percentage ofaverage interest-bearing liabilities.^(5) Net Interest Margin (FTE) is interest income expressed as a percentage ofaverage earning assets minus interest expense expressed as a percentage ofaverage earning assets.