Earnings release
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First Merchants Corporation Announces Third Quarter 2026 Results October 21, 2026 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 income 1 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 basis 1 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
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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.
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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
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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
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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%
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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
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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:
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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
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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.
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(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.
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(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
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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,
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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
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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