First Merchants Corporation (NASDAQ: FRME) has reported first quarter 2015 net income of $16.2 million, compared to $13.6 million during the same period in 2014. Earnings per share for the period totaled $.43 per share, an increase of $.05 per share, or 13.2 percent over the first quarter of 2014.
Total assets equaled $5.9 billion as of quarter-end and loans were $4.0 billion. The Corporation’s loan portfolio increased $349 million during the past twelve months. Of the increase, $204 million, or 5.6 percent, was the result of organic growth and $145 million resulted from the acquisition of Community Bank of Noblesville in November 2014.
Michael C. Rechin, President and Chief Executive Officer, stated, “First quarter 2015 results continue to represent effective execution of our core banking strategy. We are focused on growing organically while maintaining an emphasis on efficiency and expense control in this low interest rate environment.” Rechin also added, “Management was pleased to close our acquisition of Cooper State Bank on April 17th and confident about completing our integration of Community Bank of Noblesville this coming weekend.”
Net-interest income totaled $47 million for the quarter, and net-interest margin remained strong during the quarter totaling 3.78 percent, as yields on earning assets totaled 4.24 percent and the cost of supporting liabilities totaled .46 percent. When adjusted down for fair value accretion, net-interest margin totaled 3.61 percent for the quarter, 22 basis points less than the first quarter of 2014 total of 3.83 percent.
Non-interest income totaled $16.2 million for the quarter, an increase from first quarter of 2014 total of $15.4 million. Gains on sale of mortgage loans increased during the quarter by $766,000 reflecting lower rates. Non-interest expense totaled $41.2 million for the quarter, a decline of $1.9 million from the prior year. Of the decline in non-interest expense, salary and benefit expense accounted for $760,000 and other real estate owned and foreclosure expense accounted for $528,000.
The Corporation did not expense a provision for loan losses during the quarter despite net charge-offs of $1.2 million due to improvements in non-performing loans of $5.1 million, which now total $45.6 million. The allowance for loan losses totaled $62.8 million, or 1.58 percent of total loans and 1.87 percent of non-purchased loans. Non-performing assets declined by $5.4 million from year-end and now total $64.7 million.
As of March 31, 2015, the Corporation’s total risk-based capital ratio equaled 15.12 percent, common equity tier 1 capital ratio equaled 11.37 percent, and tangible common equity ratio totaled 9.31 percent.
CONFERENCE CALL
First Merchants Corporation will conduct a 1st quarter earnings conference call and web cast at 2:30 p.m. (ET) on Thursday, April 23, 2015.
To participate, dial (Toll Free) 877-507-0578 and reference First Merchants Corporation's first quarter earnings release. International callers please call +1 412-317-1073. A replay of the call will be available until May 24, 2015. To access a replay of the call, US participants should dial (Toll Free) 877-344-7529 or for International participants, dial +1 412-317-0088. The replay passcode is 10062979.
In order to view the web cast and presentation slides, please go to http://services.choruscall.com/links/frme150423.html during the time of the call. A replay of the web cast will be available until April 23, 2016.
During the call, Forward-Looking Statements about the relative business outlook may be made. These Forward-Looking Statements and all other statements made during the call that do not concern historical facts, are subject to risks and uncertainties that may materially affect actual results.
Specific Forward-Looking Statements include, but are not limited to, any indications regarding the Financial Services industry, the economy and future growth of the balance sheet or income statement.
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 is comprised of First Merchants Bank, N.A., which also operates as Lafayette Bank & Trust, Commerce National Bank, and First Merchants Trust Company as divisions of First Merchants Bank, N.A. First Merchants Corporation also operates First Merchants Insurance Group, a full-service property casualty, personal lines, and healthcare insurance agency.
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.
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (Dollars In Thousands) | March 31, | |||||||
| 2015 | 2014 | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 89,243 | $ | 112,920 | ||||
| Interest-bearing time deposits | 83,228 | 37,078 | ||||||
| Investment securities | 1,189,473 | 1,149,977 | ||||||
| Loans held for sale | 6,392 | 6,586 | ||||||
| Loans | 3,965,532 | 3,616,627 | ||||||
| Less: Allowance for loan losses | (62,801 | ) | (69,583 | ) | ||||
| Net loans | 3,902,731 | 3,547,044 | ||||||
| Premises and equipment | 77,468 | 74,847 | ||||||
| Federal Reserve and Federal Home Loan Bank stock | 41,273 | 38,990 | ||||||
| Interest receivable | 19,557 | 18,001 | ||||||
| Core deposit intangibles and goodwill | 218,034 | 202,175 | ||||||
| Cash surrender value of life insurance | 170,172 | 165,320 | ||||||
| Other real estate owned | 19,073 | 21,077 | ||||||
| Tax asset, deferred and receivable | 38,695 | 50,684 | ||||||
| Other assets | 22,182 | 28,237 | ||||||
| TOTAL ASSETS | $ | 5,877,521 | $ | 5,452,936 | ||||
| LIABILITIES | ||||||||
| Deposits: | ||||||||
| Noninterest-bearing | $ | 1,100,397 | $ | 936,741 | ||||
| Interest-bearing | 3,547,678 | 3,346,438 | ||||||
| Total Deposits | 4,648,075 | 4,283,179 | ||||||
| Borrowings: | ||||||||
| Federal funds purchased | 48,357 | |||||||
| Securities sold under repurchase agreements | 134,023 | 137,381 | ||||||
| Federal Home Loan Bank advances | 166,326 | 170,887 | ||||||
| Subordinated debentures and term loans | 126,875 | 127,172 | ||||||
| Total Borrowings | 427,224 | 483,797 | ||||||
| Interest payable | 3,685 | 3,192 | ||||||
| Other liabilities | 58,879 | 30,657 | ||||||
| Total Liabilities | 5,137,863 | 4,800,825 | ||||||
| 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 -- 50,000,000 shares | ||||||||
| Issued and outstanding - 37,781,488 and 36,014,083 shares | 4,723 | 4,502 | ||||||
| Additional paid-in capital | 431,199 | 393,765 | ||||||
| Retained earnings | 305,526 | 254,735 | ||||||
| Accumulated other comprehensive loss | (1,915 | ) | (1,016 | ) | ||||
| Total Stockholders' Equity | 739,658 | 652,111 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 5,877,521 | $ | 5,452,936 | ||||
| CONSOLIDATED STATEMENTS OF INCOME | Three Months Ended | ||||||
| (Dollars In Thousands, Except Per Share Amounts) | March 31, | ||||||
| 2015 | 2014 | ||||||
| INTEREST INCOME | |||||||
| Loans receivable: | |||||||
| Taxable | $ | 43,551 | $ | 42,025 | |||
| Tax-exempt | 248 | 61 | |||||
| Investment securities: | |||||||
| Taxable | 4,723 | 4,810 | |||||
| Tax-exempt | 3,835 | 3,438 | |||||
| Deposits with financial institutions | 37 | 23 | |||||
| Federal Reserve and Federal Home Loan Bank stock | 550 | 652 | |||||
| Total Interest Income | 52,944 | 51,009 | |||||
| INTEREST EXPENSE | |||||||
| Deposits | 3,516 | 2,549 | |||||
| Federal funds purchased | 23 | 49 | |||||
| Securities sold under repurchase agreements | 78 | 196 | |||||
| Federal Home Loan Bank advances | 691 | 682 | |||||
| Subordinated debentures and term loans | 1,660 | 1,641 | |||||
| Total Interest Expense | 5,968 | 5,117 | |||||
| NET INTEREST INCOME | 46,976 | 45,892 | |||||
| Provision for loan losses | |||||||
| NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 46,976 | 45,892 | |||||
| OTHER INCOME | |||||||
| Service charges on deposit accounts | 3,548 | 3,551 | |||||
| Fiduciary activities | 2,507 | 2,212 | |||||
| Other customer fees | 3,667 | 3,733 | |||||
| Commission income | 2,328 | 2,268 | |||||
| Earnings on cash surrender value of life insurance | 747 | 748 | |||||
| Net gains and fees on sales of loans | 1,489 | 723 | |||||
| Net realized gains on sales of available for sale securities | 1,025 | 581 | |||||
| Other income | 921 | 1,618 | |||||
| Total Other Income | 16,232 | 15,434 | |||||
| OTHER EXPENSES | |||||||
| Salaries and employee benefits | 24,541 | 25,301 | |||||
| Net occupancy | 3,790 | 3,938 | |||||
| Equipment | 2,566 | 2,739 | |||||
| Marketing | 780 | 769 | |||||
| Outside data processing fees | 1,717 | 1,831 | |||||
| Printing and office supplies | 364 | 458 | |||||
| Core deposit amortization | 721 | 592 | |||||
| FDIC assessments | 863 | 1,060 | |||||
| Other real estate owned and foreclosure expenses | 1,229 | 1,757 | |||||
| Professional and other outside services | 1,491 | 1,379 | |||||
| Other expenses | 3,140 | 3,265 | |||||
| Total Other Expenses | 41,202 | 43,089 | |||||
| INCOME BEFORE INCOME TAX | 22,006 | 18,237 | |||||
| Income tax expense | 5,834 | 4,617 | |||||
| NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 16,172 | $ | 13,620 | |||
| Per Share Data: | |||||||
| Basic Net Income Available to Common Stockholders | $ | 0.43 | $ | 0.38 | |||
| Diluted Net Income Available to Common Stockholders | $ | 0.43 | $ | 0.38 | |||
| Cash Dividends Paid | $ | 0.08 | $ | 0.05 | |||
| Average Diluted Shares Outstanding (in thousands) | 38,000 | 36,261 | |||||
| FINANCIAL HIGHLIGHTS | ||||||||
| (Dollars in thousands) | Three Months Ended | |||||||
| March 31, | ||||||||
| 2015 | 2014 | |||||||
| NET CHARGE OFF'S | $ | 1,163 | $ | (1,713 | ) | |||
| AVERAGE BALANCES: | ||||||||
| Total Assets | $ | 5,821,074 | $ | 5,399,688 | ||||
| Total Loans | 3,936,814 | 3,616,084 | ||||||
| Total Earning Assets | 5,204,981 | 4,805,665 | ||||||
| Total Deposits | 4,605,138 | 4,215,681 | ||||||
| Total Stockholders' Equity | 734,511 | 644,899 | ||||||
| FINANCIAL RATIOS: | ||||||||
| Return on Average Assets | 1.11 | % | 1.01 | % | ||||
| Return on Average Stockholders' Equity | 8.81 | 8.45 | ||||||
| Return on Average Common Stockholders' Equity | 8.81 | 8.45 | ||||||
| Average Earning Assets to Average Assets | 89.42 | 89.00 | ||||||
| Allowance for Loan Losses as % of Total Loans | 1.58 | 1.92 | ||||||
| Net Charge Off's as % of Average Loans (Annualized) | 0.12 | (0.19 | ) | |||||
| Average Stockholders' Equity to Average Assets | 12.62 | 11.94 | ||||||
| Tax Equivalent Yield on Earning Assets | 4.24 | 4.40 | ||||||
| Cost of Supporting Liabilities | 0.46 | 0.43 | ||||||
| Net Interest Margin (FTE) on Earning Assets | 3.78 | 3.97 | ||||||
| Tangible Book Value Per Share | $ | 13.96 | $ | 12.63 | ||||
| NON-PERFORMING ASSETS | ||||||||||||||||||||||||
| (Dollars In Thousands) | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||
| 2015 | 2014 | 2014 | 2014 | 2014 | ||||||||||||||||||||
| Non-Accrual Loans | $ | 44,321 | $ | 48,789 | $ | 49,104 | $ | 51,289 | $ | 55,686 | ||||||||||||||
| Renegotiated Loans | 1,326 | 1,992 | 1,171 | 1,359 | 378 | |||||||||||||||||||
| Non-Performing Loans (NPL) | 45,647 | 50,781 | 50,275 | 52,648 | 56,064 | |||||||||||||||||||
| Other Real Estate Owned | 19,073 | 19,293 | 14,540 | 18,621 | 21,077 | |||||||||||||||||||
| Non-Performing Assets (NPA) | 64,720 | 70,074 | 64,815 | 71,269 | 77,141 | |||||||||||||||||||
| 90+ Days Delinquent | 1,655 | 4,663 | 831 | 1,135 | 1,709 | |||||||||||||||||||
| NPAs & 90 Day Delinquent | $ | 66,375 | $ | 74,737 | $ | 65,646 | $ | 72,404 | $ | 78,850 | ||||||||||||||
| Loan Loss Reserve | $ | 62,801 | $ | 63,964 | $ | 65,596 | $ | 68,367 | $ | 69,583 | ||||||||||||||
| Quarterly Net Charge-off's | 1,163 | 2,592 | 4,371 | 1,216 | (1,713 | ) | ||||||||||||||||||
| NPAs / Actual Assets % | 1.10 | % | 1.20 | % | 1.16 | % | 1.27 | % | 1.41 | % | ||||||||||||||
| NPAs & 90 Day / Actual Assets % | 1.13 | % | 1.28 | % | 1.17 | % | 1.29 | % | 1.45 | % | ||||||||||||||
| NPAs / Actual Loans and OREO % | 1.62 | % | 1.77 | % | 1.71 | % | 1.90 | % | 2.12 | % | ||||||||||||||
| Loan Loss Reserves / Actual Loans (%) | 1.58 | % | 1.63 | % | 1.74 | % | 1.83 | % | 1.92 | % | ||||||||||||||
| Net Charge Off's as % of Average Loans (Annualized) | 0.12 | % | 0.27 | % | 0.47 | % | 0.13 | % | (0.19 | )% | ||||||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||||||||
| (Dollars In Thousands) | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||
| 2015 | 2014 | 2014 | 2014 | 2014 | ||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||
| Cash and cash equivalents | $ | 89,243 | $ | 118,616 | $ | 74,237 | $ | 115,891 | $ | 112,920 | ||||||||||||||
| Interest-bearing time deposits | 83,228 | 47,520 | 24,171 | 27,856 | 37,078 | |||||||||||||||||||
| Investment securities | 1,189,473 | 1,180,631 | 1,189,814 | 1,214,087 | 1,149,977 | |||||||||||||||||||
| Loans held for sale | 6,392 | 7,235 | 6,423 | 7,370 | 6,586 | |||||||||||||||||||
| Loans | 3,965,532 | 3,924,865 | 3,772,467 | 3,722,733 | 3,616,627 | |||||||||||||||||||
| Less: Allowance for loan losses | (62,801 | ) | (63,964 | ) | (65,596 | ) | (68,367 | ) | (69,583 | ) | ||||||||||||||
| Net loans | 3,902,731 | 3,860,901 | 3,706,871 | 3,654,366 | 3,547,044 | |||||||||||||||||||
| Premises and equipment | 77,468 | 77,691 | 74,105 | 74,856 | 74,847 | |||||||||||||||||||
| Federal Reserve and Federal Home Loan Bank stock | 41,273 | 41,353 | 43,127 | 43,127 | 38,990 | |||||||||||||||||||
| Interest receivable | 19,557 | 19,984 | 19,455 | 18,341 | 18,001 | |||||||||||||||||||
| Core deposit intangibles and goodwill | 218,034 | 218,755 | 200,991 | 201,583 | 202,175 | |||||||||||||||||||
| Cash surrender value of life insurance | 170,172 | 169,424 | 165,423 | 165,974 | 165,320 | |||||||||||||||||||
| Other real estate owned | 19,073 | 19,293 | 14,540 | 18,621 | 21,077 | |||||||||||||||||||
| Tax asset, deferred and receivable | 38,695 | 41,960 | 41,131 | 44,622 | 50,684 | |||||||||||||||||||
| Other assets | 22,182 | 20,764 | 31,095 | 28,426 | 28,237 | |||||||||||||||||||
| TOTAL ASSETS | $ | 5,877,521 | $ | 5,824,127 | $ | 5,591,383 | $ | 5,615,120 | $ | 5,452,936 | ||||||||||||||
| LIABILITIES | ||||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||||
| Noninterest-bearing | 1,100,397 | 1,070,859 | 939,540 | 917,825 | 936,741 | |||||||||||||||||||
| Interest-bearing | 3,547,678 | 3,569,835 | 3,370,583 | 3,411,785 | 3,346,438 | |||||||||||||||||||
| Total Deposits | 4,648,075 | 4,640,694 | 4,310,123 | 4,329,610 | 4,283,179 | |||||||||||||||||||
| Borrowings: | ||||||||||||||||||||||||
| Federal funds purchased | 15,381 | 61,428 | 100,000 | 48,357 | ||||||||||||||||||||
| Securities sold under repurchase agreements | 134,023 | 124,539 | 117,892 | 133,137 | 137,381 | |||||||||||||||||||
| Federal Home Loan Bank advances | 166,326 | 145,264 | 255,423 | 220,765 | 170,887 | |||||||||||||||||||
| Subordinated debentures and term loans | 126,875 | 126,810 | 126,874 | 126,874 | 127,172 | |||||||||||||||||||
| Total Borrowings | 427,224 | 411,994 | 561,617 | 580,776 | 483,797 | |||||||||||||||||||
| Interest payable | 3,685 | 3,201 | 3,819 | 2,489 | 3,192 | |||||||||||||||||||
| Other liabilities | 58,879 | 41,411 | 31,271 | 31,649 | 30,657 | |||||||||||||||||||
| Total Liabilities | 5,137,863 | 5,097,300 | 4,906,830 | 4,944,524 | 4,800,825 | |||||||||||||||||||
| STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||
| Cumulative Preferred Stock, $1,000 par value, $1,000 liquidation value: | ||||||||||||||||||||||||
| Authorized -- 600 shares | ||||||||||||||||||||||||
| Issued and outstanding | 125 | 125 | 125 | 125 | 125 | |||||||||||||||||||
| Common Stock, $.125 stated value: | ||||||||||||||||||||||||
| Authorized -- 50,000,000 shares | ||||||||||||||||||||||||
| Issued and outstanding | 4,723 | 4,709 | 4,509 | 4,507 | 4,502 | |||||||||||||||||||
| Additional paid-in capital | 431,199 | 431,220 | 395,582 | 394,774 | 393,765 | |||||||||||||||||||
| Retained earnings | 305,526 | 292,403 | 280,187 | 266,980 | 254,735 | |||||||||||||||||||
| Accumulated other comprehensive income (loss) | (1,915 | ) | (1,630 | ) | 4,150 | 4,210 | (1,016 | ) | ||||||||||||||||
| Total Stockholders' Equity | 739,658 | 726,827 | 684,553 | 670,596 | 652,111 | |||||||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 5,877,521 | $ | 5,824,127 | $ | 5,591,383 | $ | 5,615,120 | $ | 5,452,936 | ||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||||||
| (Dollars In Thousands, Except Per Share Amounts) | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||
| 2015 | 2014 | 2014 | 2014 | 2014 | ||||||||||||||||||||
| INTEREST INCOME | ||||||||||||||||||||||||
| Loans receivable: | ||||||||||||||||||||||||
| Taxable | $ | 43,551 | $ | 43,710 | $ | 43,981 | $ | 42,323 | $ | 42,025 | ||||||||||||||
| Tax-exempt | 248 | 147 | 61 | 58 | 61 | |||||||||||||||||||
| Investment securities: | ||||||||||||||||||||||||
| Taxable | 4,723 | 4,980 | 5,046 | 5,046 | 4,810 | |||||||||||||||||||
| Tax-exempt | 3,835 | 3,692 | 3,683 | 3,570 | 3,438 | |||||||||||||||||||
| Deposits with financial institutions | 37 | 48 | 18 | 35 | 23 | |||||||||||||||||||
| Federal Reserve and Federal Home Loan Bank stock | 550 | 476 | 501 | 495 | 652 | |||||||||||||||||||
| Total Interest Income | 52,944 | 53,053 | 53,290 | 51,527 | 51,009 | |||||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||||||
| Deposits | 3,516 | 3,402 | 2,853 | 2,874 | 2,549 | |||||||||||||||||||
| Federal funds purchased | 23 | 3 | 102 | 23 | 49 | |||||||||||||||||||
| Securities sold under repurchase agreements | 78 | 72 | 74 | 187 | 196 | |||||||||||||||||||
| Federal Home Loan Bank advances | 691 | 750 | 734 | 676 | 682 | |||||||||||||||||||
| Subordinated debentures and term loans | 1,660 | 1,666 | 1,661 | 1,648 | 1,641 | |||||||||||||||||||
| Total Interest Expense | 5,968 | 5,893 | 5,424 | 5,408 | 5,117 | |||||||||||||||||||
| NET INTEREST INCOME | 46,976 | 47,160 | 47,866 | 46,119 | 45,892 | |||||||||||||||||||
| Provision for loan losses | 960 | 1,600 | ||||||||||||||||||||||
| NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 46,976 | 46,200 | 46,266 | 46,119 | 45,892 | |||||||||||||||||||
| OTHER INCOME | ||||||||||||||||||||||||
| Service charges on deposit accounts | 3,548 | 3,979 | 4,119 | 4,098 | 3,551 | |||||||||||||||||||
| Fiduciary activities | 2,507 | 2,242 | 2,152 | 2,360 | 2,212 | |||||||||||||||||||
| Other customer fees | 3,667 | 3,926 | 3,991 | 4,049 | 3,733 | |||||||||||||||||||
| Commission income | 2,328 | 1,534 | 1,723 | 1,886 | 2,268 | |||||||||||||||||||
| Earnings on cash surrender value of life insurance | 747 | 734 | 1,524 | 653 | 748 | |||||||||||||||||||
| Net gains and fees on sales of loans | 1,489 | 1,559 | 1,458 | 1,159 | 723 | |||||||||||||||||||
| Net realized gains on sales of available for sale securities | 1,025 | 1,246 | 910 | 844 | 581 | |||||||||||||||||||
| Other income | 921 | 1,155 | 2,535 | 1,130 | 1,618 | |||||||||||||||||||
| Total Other Income | 16,232 | 16,375 | 18,412 | 16,179 | 15,434 | |||||||||||||||||||
| OTHER EXPENSES | ||||||||||||||||||||||||
| Salaries and employee benefits | 24,541 | 23,595 | 24,173 | 23,430 | 25,301 | |||||||||||||||||||
| Net occupancy | 3,790 | 3,288 | 3,401 | 3,204 | 3,938 | |||||||||||||||||||
| Equipment | 2,566 | 2,315 | 2,187 | 2,096 | 2,739 | |||||||||||||||||||
| Marketing | 780 | 836 | 1,070 | 789 | 769 | |||||||||||||||||||
| Outside data processing fees | 1,717 | 1,592 | 1,853 | 2,039 | 1,831 | |||||||||||||||||||
| Printing and office supplies | 364 | 364 | 350 | 393 | 458 | |||||||||||||||||||
| Core deposit amortization | 721 | 669 | 592 | 592 | 592 | |||||||||||||||||||
| FDIC assessments | 863 | 895 | 920 | 863 | 1,060 | |||||||||||||||||||
| Other real estate owned and foreclosure expenses | 1,229 | 1,055 | 2,618 | 2,613 | 1,757 | |||||||||||||||||||
| Professional and other outside services | 1,491 | 3,633 | 1,573 | 1,531 | 1,379 | |||||||||||||||||||
| Other expenses | 3,140 | 3,435 | 3,839 | 3,700 | 3,265 | |||||||||||||||||||
| Total Other Expenses | 41,202 | 41,677 | 42,576 | 41,250 | 43,089 | |||||||||||||||||||
| INCOME BEFORE INCOME TAX | 22,006 | 20,898 | 22,102 | 21,048 | 18,237 | |||||||||||||||||||
| Income tax expense | 5,834 | 5,638 | 5,980 | 5,888 | 4,617 | |||||||||||||||||||
| NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 16,172 | $ | 15,260 | $ | 16,122 | $ | 15,160 | $ | 13,620 | ||||||||||||||
| Per Share Data: | ||||||||||||||||||||||||
| Basic Net Income Available to Common Stockholders | $ | 0.43 | $ | 0.41 | $ | 0.45 | $ | 0.42 | $ | 0.38 | ||||||||||||||
| Diluted Net Income Available to Common Stockholders | $ | 0.43 | $ | 0.41 | $ | 0.45 | $ | 0.41 | $ | 0.38 | ||||||||||||||
| Cash Dividends Paid | $ | 0.08 | $ | 0.08 | $ | 0.08 | $ | 0.08 | $ | 0.05 | ||||||||||||||
| Average Diluted Shares Outstanding (in thousands) | 38,000 | 37,323 | 36,329 | 36,294 | 36,261 | |||||||||||||||||||
| FINANCIAL RATIOS: | ||||||||||||||||||||||||
| Return on Average Assets | 1.11 | % | 1.06 | % | 1.16 | % | 1.10 | % | 1.01 | % | ||||||||||||||
| Return on Average Stockholders' Equity | 8.81 | 8.55 | 9.49 | 9.15 | 8.45 | |||||||||||||||||||
| Return on Average Common Stockholders' Equity | 8.81 | 8.56 | 9.50 | 9.15 | 8.45 | |||||||||||||||||||
| Average Earning Assets to Average Assets | 89.42 | 89.51 | 89.82 | 89.57 | 89.00 | |||||||||||||||||||
| Allowance for Loan Losses as % of Total Loans | 1.58 | 1.63 | 1.74 | 1.83 | 1.92 | |||||||||||||||||||
| Net Charge Off's as % of Average Loans (Annualized) | 0.12 | 0.27 | 0.47 | 0.13 | (0.19 | ) | ||||||||||||||||||
| Average Stockholders' Equity to Average Assets | 12.62 | 12.34 | 12.18 | 12.00 | 11.94 | |||||||||||||||||||
| Tax Equivalent Yield on Earning Assets | 4.24 | 4.26 | 4.41 | 4.33 | 4.40 | |||||||||||||||||||
| Cost of Supporting Liabilities | 0.46 | 0.46 | 0.43 | 0.44 | 0.43 | |||||||||||||||||||
| Net Interest Margin (FTE) on Earning Assets | 3.78 | 3.80 | 3.98 | 3.89 | 3.97 | |||||||||||||||||||
| Tangible Book Value Per Share | $ | 13.96 | $ | 13.65 | $ | 13.53 | $ | 13.14 | $ | 12.63 | ||||||||||||||
| LOANS | ||||||||||||||||||||||||
| (Dollars In Thousands) | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||
| 2015 | 2014 | 2014 | 2014 | 2014 | ||||||||||||||||||||
| Commercial and industrial loans | $ | 938,937 | $ | 896,688 | $ | 900,970 | $ | 857,844 | $ | 787,390 | ||||||||||||||
| Agricultural production financing and other loans to farmers | 95,652 | 104,927 | 99,649 | 102,270 | 99,226 | |||||||||||||||||||
| Real estate loans: | ||||||||||||||||||||||||
| Construction | 237,036 | 207,221 | 178,213 | 165,388 | 155,117 | |||||||||||||||||||
| Commercial and farmland | 1,646,418 | 1,672,661 | 1,603,698 | 1,621,436 | 1,606,735 | |||||||||||||||||||
| Residential | 640,451 | 647,315 | 625,609 | 629,162 | 626,202 | |||||||||||||||||||
| Home Equity | 286,914 | 286,529 | 269,952 | 261,811 | 256,790 | |||||||||||||||||||
| Individuals' loans for household and other personal expenditures | 70,223 | 73,400 | 66,832 | 61,533 | 61,742 | |||||||||||||||||||
| Lease financing receivables, net of unearned income | 853 | 1,106 | 1,208 | 1,231 | 1,378 | |||||||||||||||||||
| Other loans | 49,048 | 35,018 | 26,336 | 22,058 | 22,047 | |||||||||||||||||||
| Loans | 3,965,532 | 3,924,865 | 3,772,467 | 3,722,733 | 3,616,627 | |||||||||||||||||||
| Allowance for loan losses | (62,801 | ) | (63,964 | ) | (65,596 | ) | (68,367 | ) | (69,583 | ) | ||||||||||||||
| NET LOANS | $ | 3,902,731 | $ | 3,860,901 | $ | 3,706,871 | $ | 3,654,366 | $ | 3,547,044 | ||||||||||||||
| DEPOSITS | ||||||||||||||||||||||||
| (Dollars In Thousands) | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||
| 2015 | 2014 | 2014 | 2014 | 2014 | ||||||||||||||||||||
| Demand deposits | $ | 2,116,135 | $ | 2,146,492 | $ | 1,947,040 | $ | 2,041,183 | $ | 1,966,895 | ||||||||||||||
| Savings deposits | 1,402,421 | 1,376,707 | 1,281,994 | 1,251,277 | 1,282,702 | |||||||||||||||||||
| Certificates and other time deposits of $100,000 or more | 283,313 | 260,685 | 241,163 | 251,585 | 265,683 | |||||||||||||||||||
| Other certificates and time deposits | 516,500 | 523,010 | 502,965 | 534,344 | 568,160 | |||||||||||||||||||
| Brokered deposits | 329,706 | 333,800 | 336,961 | 251,221 | 199,739 | |||||||||||||||||||
| TOTAL DEPOSITS | $ | 4,648,075 | $ | 4,640,694 | $ | 4,310,123 | $ | 4,329,610 | $ | 4,283,179 | ||||||||||||||
| NET INTEREST INCOME | ||||||||||||||||||||||
| (Dollars in Thousands) | For the Three Months Ended | |||||||||||||||||||||
| March 31, 2015 | March 31, 2014 | |||||||||||||||||||||
| Interest | Interest | |||||||||||||||||||||
| Average | Income / | Average | Average | Income / | Average | |||||||||||||||||
| Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||
| Assets: | ||||||||||||||||||||||
| Interest-bearing time deposits | $ | 56,907 | $ | 36 | 0.25 | % | $ | 44,312 | $ | 23 | 0.21 | % | ||||||||||
| Federal Reserve and Federal Home Loan Bank stock | 41,351 | 550 | 5.32 | 38,990 | 652 | 6.69 | ||||||||||||||||
| Investment Securities: (1) | ||||||||||||||||||||||
| Taxable | 736,378 | 4,723 | 2.57 | 736,682 | 4,810 | 2.61 | ||||||||||||||||
| Tax-Exempt (2) | 433,531 | 5,899 | 5.44 | 369,597 | 5,289 | 5.72 | ||||||||||||||||
| Total Investment Securities | 1,169,909 | 10,622 | 3.63 | 1,106,279 | 10,099 | 3.65 | ||||||||||||||||
| Loans held for sale | 4,927 | 110 | 8.93 | 5,060 | 71 | 5.61 | ||||||||||||||||
| Loans: (3) | ||||||||||||||||||||||
| Commercial | 3,041,242 | 34,169 | 4.49 | 2,925,997 | 33,611 | 4.59 | ||||||||||||||||
| Real Estate Mortgage | 459,794 | 4,849 | 4.22 | 346,318 | 3,989 | 4.61 | ||||||||||||||||
| Installment | 394,063 | 4,424 | 4.49 | 326,357 | 4,353 | 5.34 | ||||||||||||||||
| Tax-Exempt (2) | 36,788 | 382 | 4.15 | 12,352 | 94 | 3.04 | ||||||||||||||||
| Total Loans | 3,936,814 | 43,934 | 4.46 | 3,616,084 | 42,118 | 4.66 | ||||||||||||||||
| Total Earning Assets | 5,204,981 | 55,142 | 4.24 | 4,805,665 | 52,892 | 4.40 | ||||||||||||||||
| Net unrealized gain on securities available for sale | 14,480 | 3,636 | ||||||||||||||||||||
| Allowance for loan losses | (63,429 | ) | (68,806 | ) | ||||||||||||||||||
| Cash and cash equivalents | 98,791 | 95,255 | ||||||||||||||||||||
| Premises and equipment | 77,707 | 74,632 | ||||||||||||||||||||
| Other assets | 488,544 | 489,306 | ||||||||||||||||||||
| Total Assets | $ | 5,821,074 | $ | 5,399,688 | ||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||
| Interest-bearing NOW deposits | $ | 1,030,433 | $ | 252 | 0.10 | % | $ | 1,044,251 | $ | 268 | 0.10 | % | ||||||||||
| Money market deposits | 823,761 | 412 | 0.20 | 752,738 | 367 | 0.20 | ||||||||||||||||
| Savings deposits | 571,751 | 159 | 0.11 | 524,383 | 152 | 0.12 | ||||||||||||||||
| Certificates and other time deposits | 1,126,098 | 2,693 | 0.96 | 978,673 | 1,762 | 0.72 | ||||||||||||||||
| Total Interest-bearing Deposits | 3,552,043 | 3,516 | 0.40 | 3,300,045 | 2,549 | 0.31 | ||||||||||||||||
| Borrowings | 437,864 | 2,452 | 2.24 | 493,578 | 2,568 | 2.08 | ||||||||||||||||
| Total Interest-bearing Liabilities | 3,989,907 | 5,968 | 0.60 | 3,793,623 | 5,117 | 0.54 | ||||||||||||||||
| Noninterest-bearing deposits | 1,053,095 | 915,636 | ||||||||||||||||||||
| Other liabilities | 43,561 | 45,530 | ||||||||||||||||||||
| Total Liabilities | 5,086,563 | 4,754,789 | ||||||||||||||||||||
| Stockholders' Equity | 734,511 | 644,899 | ||||||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 5,821,074 | 5,968 | 0.46 | $ | 5,399,688 | 5,117 | 0.43 | ||||||||||||||
| Net Interest Income | $ | 49,174 | $ | 47,775 | ||||||||||||||||||
| Net Interest Margin | 3.78 | % | 3.97 | % | ||||||||||||||||||
| (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. |
| (2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 35 percent for 2015 and 2014. These totals equal $2,198 and $1,884 for the three months ended March 31, 2015 and 2014, respectively. |
| (3) Non accruing loans have been included in the average balances. |
Contacts:
David L. Ortega, 765-378-8937
First
Vice President/Director of Investor Relations
http://www.firstmerchants.com
