First Merchants Corporation (NASDAQ:FRME) has reported first quarter
2016 net income of $17.7 million, compared to $16.2 million during the
same period in 2015. Earnings per share for the period totaled $.43 per
share, equaling the first quarter of 2015. Integration expenses related
to the acquisition of Ameriana Bank totaling $1.9 million, or $.03 per
share, were recorded during the first quarter of 2016.
Total assets equaled $6.8 billion as of quarter-end and loans were $4.7
billion. The Corporation’s loan portfolio increased, by $744 million,
during the past twelve months. Of the increase, $316 million or 8.0
percent was the result of organic growth and $428 million resulted from
the acquisition of Cooper State Bank in Columbus, Ohio in April of 2015
and Ameriana Bank in December of 2015. Total deposits equaled $5.3
billion at quarter-end and increased by $663 million. Organic deposit
growth totaled $174 million, or 3.7 percent, and $489 million resulted
from acquisition activity in 2015.
Michael C. Rechin, President and Chief Executive Officer, stated, “We
are excited about our progress in 2016 and the foundation it provides
for the balance of the year. We successfully integrated Ameriana bank
just prior to quarter end which was our fastest acquisition integration
ever and we are now serving their clients our wider core product
offerings. With recent merger expenses behind us, next quarter will
demonstrate the lower operating expense levels we’ve targeted. Our net
interest margin expanded and in combination with our larger balance
sheet, produced a nice lift in net interest income and net
income. Looking forward we intend for our commercial loan pipeline to
continue our sequential net interest income growth and provide an even
stronger base for non-interest income.”
Net-interest income totaled $54.5 million for the quarter, an increase
of $7.5 million. Net-interest margin improved over last year by 5 basis
points totaling 3.83 percent, as yields on earning assets totaled 4.28
percent and the cost of supporting liabilities totaled .45 percent. When
adjusted for fair value accretion, core net-interest margin also
increased over last year by 5 basis points totaling 3.66 percent.
Non-interest income totaled $16.3 million for the quarter, an increase
of $89,000 from the first quarter of 2015. The sale of our insurance
business in 2015 resulted in a year-over-year decline of $2.3 million.
Core performance and acquisition activity improved core banking fee
income to account for the increase.
Non-interest expense totaled $46.9 million, an increase of $5.7 million
over the prior year. The sale of our insurance business saved $1.5
million of expense but investments in our core business primarily
through bank acquisitions drove the increase. Nonrecurring expenses
totaled $1.9 million, and when excluded from the quarter’s results,
produce an efficiency ratio of 58.8 percent.
The Corporation’s provision expense totaled $550,000 during the quarter,
as net charge-offs totaled $917,000. The allowance for loan losses
totaled $62.1 million, or 1.32 percent of total loans and 2.29 percent
of non-purchased loans. Non-performing assets totaled $53.4 million as
of quarter-end, down from $64.7 million a year ago.
As of March 31, 2015, the Corporation’s total risk-based capital equaled
14.79 percent, Tier 1 common risk-based capital equaled 11.42 percent,
and tangible common equity ratio totaled 9.35 percent.
CONFERENCE CALL
First Merchants Corporation will conduct a first quarter earnings
conference call and web cast at 2:30 p.m. (ET) on Tuesday, April 26,
2016.
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 26, 2016. 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 10083247.
In order to view the web cast and presentation slides, please go to http://services.choruscall.com/links/frme160426.html
during the time of the call. A replay of the web cast will be available
until April 26, 2017.
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 and First
Merchants Trust Company as divisions of First Merchants Bank, N.A.
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,
|
|
|
|
2016
|
|
|
2015
|
|
ASSETS
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
85,738
|
|
|
|
$
|
89,243
|
|
|
Interest-bearing time deposits
|
|
77,453
|
|
|
|
83,228
|
|
|
Investment securities
|
|
1,270,777
|
|
|
|
1,189,473
|
|
|
Loans held for sale
|
|
3,628
|
|
|
|
6,392
|
|
|
Loans
|
|
4,709,907
|
|
|
|
3,965,532
|
|
|
Less: Allowance for loan losses
|
|
(62,086
|
)
|
|
|
(62,801
|
)
|
|
Net loans
|
|
4,647,821
|
|
|
|
3,902,731
|
|
|
Premises and equipment
|
|
96,494
|
|
|
|
77,468
|
|
|
Federal Reserve and Federal Home Loan Bank stock
|
|
37,553
|
|
|
|
41,273
|
|
|
Interest receivable
|
|
22,836
|
|
|
|
19,557
|
|
|
Core deposit intangibles and goodwill
|
|
261,799
|
|
|
|
218,034
|
|
|
Cash surrender value of life insurance
|
|
200,549
|
|
|
|
170,172
|
|
|
Other real estate owned
|
|
15,626
|
|
|
|
19,073
|
|
|
Tax asset, deferred and receivable
|
|
47,982
|
|
|
|
38,695
|
|
|
Other assets
|
|
30,283
|
|
|
|
22,182
|
|
|
TOTAL ASSETS
|
|
$
|
6,798,539
|
|
|
|
$
|
5,877,521
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
Noninterest-bearing
|
|
$
|
1,282,462
|
|
|
|
$
|
1,100,397
|
|
|
Interest-bearing
|
|
4,028,608
|
|
|
|
3,547,678
|
|
|
Total Deposits
|
|
5,311,070
|
|
|
|
4,648,075
|
|
|
Borrowings:
|
|
|
|
|
|
|
Federal funds purchased
|
|
602
|
|
|
|
|
|
Securities sold under repurchase agreements
|
|
150,134
|
|
|
|
134,023
|
|
|
Federal Home Loan Bank advances
|
|
263,588
|
|
|
|
166,326
|
|
|
Subordinated debentures and term loans
|
|
127,523
|
|
|
|
126,875
|
|
|
Total Borrowings
|
|
541,847
|
|
|
|
427,224
|
|
|
Interest payable
|
|
3,910
|
|
|
|
3,685
|
|
|
Other liabilities
|
|
74,449
|
|
|
|
58,879
|
|
|
Total Liabilities
|
|
5,931,276
|
|
|
|
5,137,863
|
|
|
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 - 40,749,340 and 37,781,488 shares
|
|
5,094
|
|
|
|
4,723
|
|
|
Additional paid-in capital
|
|
504,661
|
|
|
|
431,199
|
|
|
Retained earnings
|
|
355,317
|
|
|
|
305,526
|
|
|
Accumulated other comprehensive income (loss)
|
|
2,066
|
|
|
|
(1,915
|
)
|
|
Total Stockholders' Equity
|
|
867,263
|
|
|
|
739,658
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
$
|
6,798,539
|
|
|
|
$
|
5,877,521
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
Three Months Ended
|
|
(Dollars In Thousands, Except Per Share Amounts)
|
|
March 31,
|
|
|
|
2016
|
|
|
2015
|
|
INTEREST INCOME
|
|
|
|
|
|
|
Loans receivable:
|
|
|
|
|
|
|
Taxable
|
|
$
|
50,489
|
|
|
|
$
|
43,551
|
|
Tax-exempt
|
|
1,315
|
|
|
|
248
|
|
Investment securities:
|
|
|
|
|
|
|
Taxable
|
|
4,328
|
|
|
|
4,723
|
|
Tax-exempt
|
|
4,509
|
|
|
|
3,835
|
|
Deposits with financial institutions
|
|
106
|
|
|
|
37
|
|
Federal Reserve and Federal Home Loan Bank stock
|
|
480
|
|
|
|
550
|
|
Total Interest Income
|
|
61,227
|
|
|
|
52,944
|
|
INTEREST EXPENSE
|
|
|
|
|
|
|
Deposits
|
|
4,063
|
|
|
|
3,516
|
|
Federal funds purchased
|
|
28
|
|
|
|
23
|
|
Securities sold under repurchase agreements
|
|
100
|
|
|
|
78
|
|
Federal Home Loan Bank advances
|
|
796
|
|
|
|
691
|
|
Subordinated debentures and term loans
|
|
1,785
|
|
|
|
1,660
|
|
Total Interest Expense
|
|
6,772
|
|
|
|
5,968
|
|
NET INTEREST INCOME
|
|
54,455
|
|
|
|
46,976
|
|
Provision for loan losses
|
|
550
|
|
|
|
|
|
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
|
|
53,905
|
|
|
|
46,976
|
|
OTHER INCOME
|
|
|
|
|
|
|
Service charges on deposit accounts
|
|
4,145
|
|
|
|
3,548
|
|
Fiduciary activities
|
|
2,494
|
|
|
|
2,507
|
|
Other customer fees
|
|
5,059
|
|
|
|
3,667
|
|
Commission income
|
|
|
|
|
2,328
|
|
Earnings on cash surrender value of life insurance
|
|
1,476
|
|
|
|
747
|
|
Net gains and fees on sales of loans
|
|
1,460
|
|
|
|
1,489
|
|
Net realized gains (losses) on sales of available for sale securities
|
|
997
|
|
|
|
1,025
|
|
Other income
|
|
690
|
|
|
|
921
|
|
Total Other Income
|
|
16,321
|
|
|
|
16,232
|
|
OTHER EXPENSES
|
|
|
|
|
|
|
Salaries and employee benefits
|
|
27,337
|
|
|
|
24,541
|
|
Net occupancy
|
|
4,022
|
|
|
|
3,790
|
|
Equipment
|
|
3,238
|
|
|
|
2,566
|
|
Marketing
|
|
737
|
|
|
|
780
|
|
Outside data processing fees
|
|
2,069
|
|
|
|
1,717
|
|
Printing and office supplies
|
|
364
|
|
|
|
364
|
|
Core deposit amortization
|
|
978
|
|
|
|
721
|
|
FDIC assessments
|
|
950
|
|
|
|
863
|
|
Other real estate owned and foreclosure expenses
|
|
1,235
|
|
|
|
1,229
|
|
Professional and other outside services
|
|
2,162
|
|
|
|
1,491
|
|
Other expenses
|
|
3,867
|
|
|
|
3,140
|
|
Total Other Expenses
|
|
46,959
|
|
|
|
41,202
|
|
INCOME BEFORE INCOME TAX
|
|
23,267
|
|
|
|
22,006
|
|
Income tax expense
|
|
5,574
|
|
|
|
5,834
|
|
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS
|
|
$
|
17,693
|
|
|
|
$
|
16,172
|
|
|
|
|
|
|
|
|
Per Share Data:
|
|
|
|
|
|
|
Basic Net Income Available to Common Stockholders
|
|
$
|
0.43
|
|
|
|
$
|
0.43
|
|
Diluted Net Income Available to Common Stockholders
|
|
$
|
0.43
|
|
|
|
$
|
0.43
|
|
Cash Dividends Paid
|
|
$
|
0.11
|
|
|
|
$
|
0.08
|
|
Average Diluted Shares Outstanding (in thousands)
|
|
40,917
|
|
|
|
38,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL HIGHLIGHTS
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2016
|
|
|
2015
|
|
NET CHARGE OFF'S
|
|
$
|
917
|
|
|
|
$
|
1,163
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCES:
|
|
|
|
|
|
|
Total Assets
|
|
$
|
6,743,315
|
|
|
|
$
|
5,821,074
|
|
|
Total Loans
|
|
4,669,568
|
|
|
|
3,936,814
|
|
|
Total Earning Assets
|
|
6,020,317
|
|
|
|
5,204,981
|
|
|
Total Deposits
|
|
5,297,289
|
|
|
|
4,605,138
|
|
|
Total Stockholders' Equity
|
|
861,652
|
|
|
|
734,511
|
|
|
|
|
|
|
|
|
|
FINANCIAL RATIOS:
|
|
|
|
|
|
|
Return on Average Assets
|
|
1.05
|
%
|
|
|
1.11
|
%
|
|
Return on Average Stockholders' Equity
|
|
8.21
|
|
|
|
8.81
|
|
|
Return on Average Common Stockholders' Equity
|
|
8.21
|
|
|
|
8.81
|
|
|
Average Earning Assets to Average Assets
|
|
89.28
|
|
|
|
89.42
|
|
|
Allowance for Loan Losses as % of Total Loans
|
|
1.32
|
|
|
|
1.58
|
|
|
Net Charge Off's as % of Average Loans (Annualized)
|
|
0.08
|
|
|
|
0.12
|
|
|
Average Stockholders' Equity to Average Assets
|
|
12.78
|
|
|
|
12.62
|
|
|
Tax Equivalent Yield on Earning Assets
|
|
4.28
|
|
|
|
4.24
|
|
|
Cost of Supporting Liabilities
|
|
0.45
|
|
|
|
0.46
|
|
|
Net Interest Margin (FTE) on Earning Assets
|
|
3.83
|
|
|
|
3.78
|
|
|
Tangible Book Value Per Share
|
|
$
|
15.02
|
|
|
|
$
|
13.96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-PERFORMING ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars In Thousands)
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
Non-Accrual Loans
|
|
$
|
36,719
|
|
|
$
|
31,389
|
|
|
$
|
32,597
|
|
|
$
|
37,713
|
|
|
$
|
44,321
|
|
|
Renegotiated Loans
|
|
1,015
|
|
|
1,923
|
|
|
3,823
|
|
|
885
|
|
|
1,326
|
|
|
Non-Performing Loans (NPL)
|
|
37,734
|
|
|
33,312
|
|
|
36,420
|
|
|
38,598
|
|
|
45,647
|
|
|
Other Real Estate Owned
|
|
15,626
|
|
|
17,257
|
|
|
14,809
|
|
|
19,242
|
|
|
19,073
|
|
|
Non-Performing Assets (NPA)
|
|
53,360
|
|
|
50,569
|
|
|
51,229
|
|
|
57,840
|
|
|
64,720
|
|
|
90+ Days Delinquent
|
|
963
|
|
|
907
|
|
|
1,947
|
|
|
632
|
|
|
1,655
|
|
|
NPAs & 90 Day Delinquent
|
|
$
|
54,323
|
|
|
$
|
51,476
|
|
|
$
|
53,176
|
|
|
$
|
58,472
|
|
|
$
|
66,375
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Loss Reserve
|
|
$
|
62,086
|
|
|
$
|
62,453
|
|
|
$
|
62,861
|
|
|
$
|
62,550
|
|
|
$
|
62,801
|
|
|
Quarterly Net Charge-off's
|
|
917
|
|
|
408
|
|
|
(311
|
)
|
|
668
|
|
|
1,163
|
|
|
NPAs / Actual Assets %
|
|
0.78
|
%
|
|
0.75
|
%
|
|
0.83
|
%
|
|
0.94
|
%
|
|
1.10
|
%
|
|
NPAs & 90 Day / Actual Assets %
|
|
0.80
|
%
|
|
0.76
|
%
|
|
0.86
|
%
|
|
0.95
|
%
|
|
1.13
|
%
|
|
NPAs / Actual Loans and OREO %
|
|
1.13
|
%
|
|
1.07
|
%
|
|
1.18
|
%
|
|
1.36
|
%
|
|
1.62
|
%
|
|
Loan Loss Reserves / Actual Loans (%)
|
|
1.32
|
%
|
|
1.33
|
%
|
|
1.45
|
%
|
|
1.47
|
%
|
|
1.58
|
%
|
|
Net Charge Off's as % of Average Loans (Annualized)
|
|
0.08
|
%
|
|
0.04
|
%
|
|
(0.03
|
)%
|
|
0.06
|
%
|
|
0.12
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars In Thousands)
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
85,738
|
|
|
$
|
102,170
|
|
|
$
|
84,677
|
|
|
$
|
105,928
|
|
|
$
|
89,243
|
|
|
Interest-bearing time deposits
|
|
77,453
|
|
|
32,315
|
|
|
27,111
|
|
|
26,669
|
|
|
83,228
|
|
|
Investment securities
|
|
1,270,777
|
|
|
1,276,999
|
|
|
1,208,793
|
|
|
1,212,516
|
|
|
1,189,473
|
|
|
Loans held for sale
|
|
3,628
|
|
|
9,894
|
|
|
1,943
|
|
|
8,295
|
|
|
6,392
|
|
|
Loans
|
|
4,709,907
|
|
|
4,693,822
|
|
|
4,321,715
|
|
|
4,238,205
|
|
|
3,965,532
|
|
|
Less: Allowance for loan losses
|
|
(62,086
|
)
|
|
(62,453
|
)
|
|
(62,861
|
)
|
|
(62,550
|
)
|
|
(62,801
|
)
|
|
Net loans
|
|
4,647,821
|
|
|
4,631,369
|
|
|
4,258,854
|
|
|
4,175,655
|
|
|
3,902,731
|
|
|
Premises and equipment
|
|
96,494
|
|
|
97,648
|
|
|
83,457
|
|
|
84,841
|
|
|
77,468
|
|
|
Federal Reserve and Federal Home Loan Bank stock
|
|
37,553
|
|
|
37,633
|
|
|
34,498
|
|
|
34,630
|
|
|
41,273
|
|
|
Interest receivable
|
|
22,836
|
|
|
24,415
|
|
|
22,048
|
|
|
19,880
|
|
|
19,557
|
|
|
Core deposit intangibles and goodwill
|
|
261,799
|
|
|
259,764
|
|
|
219,503
|
|
|
220,196
|
|
|
218,034
|
|
|
Cash surrender value of life insurance
|
|
200,549
|
|
|
200,539
|
|
|
171,530
|
|
|
170,813
|
|
|
170,172
|
|
|
Other real estate owned
|
|
15,626
|
|
|
17,257
|
|
|
14,809
|
|
|
19,242
|
|
|
19,073
|
|
|
Tax asset, deferred and receivable
|
|
47,982
|
|
|
46,977
|
|
|
38,339
|
|
|
39,622
|
|
|
38,695
|
|
|
Other assets
|
|
30,283
|
|
|
24,023
|
|
|
24,235
|
|
|
22,021
|
|
|
22,182
|
|
|
TOTAL ASSETS
|
|
$
|
6,798,539
|
|
|
$
|
6,761,003
|
|
|
$
|
6,189,797
|
|
|
$
|
6,140,308
|
|
|
$
|
5,877,521
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
|
|
$
|
1,282,462
|
|
|
$
|
1,266,027
|
|
|
$
|
1,110,905
|
|
|
$
|
1,122,688
|
|
|
$
|
1,100,397
|
|
|
Interest-bearing
|
|
4,028,608
|
|
|
4,023,620
|
|
|
3,703,684
|
|
|
3,666,889
|
|
|
3,547,678
|
|
|
Total Deposits
|
|
5,311,070
|
|
|
5,289,647
|
|
|
4,814,589
|
|
|
4,789,577
|
|
|
4,648,075
|
|
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds purchased
|
|
602
|
|
|
49,721
|
|
|
52,896
|
|
|
40,748
|
|
|
|
|
Securities sold under repurchase agreements
|
|
150,134
|
|
|
155,325
|
|
|
153,822
|
|
|
137,240
|
|
|
134,023
|
|
|
Federal Home Loan Bank advances
|
|
263,588
|
|
|
235,652
|
|
|
237,856
|
|
|
247,687
|
|
|
166,326
|
|
|
Subordinated debentures and term loans
|
|
127,523
|
|
|
127,846
|
|
|
121,936
|
|
|
126,882
|
|
|
126,875
|
|
|
Total Borrowings
|
|
541,847
|
|
|
568,544
|
|
|
566,510
|
|
|
552,557
|
|
|
427,224
|
|
|
Interest payable
|
|
3,910
|
|
|
3,092
|
|
|
3,710
|
|
|
3,211
|
|
|
3,685
|
|
|
Other liabilities
|
|
74,449
|
|
|
49,211
|
|
|
38,004
|
|
|
45,008
|
|
|
58,879
|
|
|
Total Liabilities
|
|
5,931,276
|
|
|
5,910,494
|
|
|
5,422,813
|
|
|
5,390,353
|
|
|
5,137,863
|
|
|
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
|
|
5,094
|
|
|
5,083
|
|
|
4,734
|
|
|
4,728
|
|
|
4,723
|
|
|
Additional paid-in capital
|
|
504,661
|
|
|
504,530
|
|
|
433,577
|
|
|
432,294
|
|
|
431,199
|
|
|
Retained earnings
|
|
355,317
|
|
|
342,133
|
|
|
332,162
|
|
|
319,298
|
|
|
305,526
|
|
|
Accumulated other comprehensive income (loss)
|
|
2,066
|
|
|
(1,362
|
)
|
|
(3,614
|
)
|
|
(6,490
|
)
|
|
(1,915
|
)
|
|
Total Stockholders' Equity
|
|
867,263
|
|
|
850,509
|
|
|
766,984
|
|
|
749,955
|
|
|
739,658
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
$
|
6,798,539
|
|
|
$
|
6,761,003
|
|
|
$
|
6,189,797
|
|
|
$
|
6,140,308
|
|
|
$
|
5,877,521
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars In Thousands, Except Per Share Amounts)
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
INTEREST INCOME
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable:
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
$
|
50,489
|
|
|
$
|
45,897
|
|
|
$
|
46,037
|
|
|
$
|
45,320
|
|
|
$
|
43,551
|
|
|
Tax-exempt
|
|
1,315
|
|
|
1,285
|
|
|
1,190
|
|
|
736
|
|
|
248
|
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
4,328
|
|
|
4,363
|
|
|
4,374
|
|
|
4,425
|
|
|
4,723
|
|
|
Tax-exempt
|
|
4,509
|
|
|
4,444
|
|
|
4,412
|
|
|
4,231
|
|
|
3,835
|
|
|
Deposits with financial institutions
|
|
106
|
|
|
67
|
|
|
25
|
|
|
31
|
|
|
37
|
|
|
Federal Reserve and Federal Home Loan Bank stock
|
|
480
|
|
|
458
|
|
|
500
|
|
|
459
|
|
|
550
|
|
|
Total Interest Income
|
|
61,227
|
|
|
56,514
|
|
|
56,538
|
|
|
55,202
|
|
|
52,944
|
|
|
INTEREST EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
4,063
|
|
|
3,938
|
|
|
3,715
|
|
|
3,686
|
|
|
3,516
|
|
|
Federal funds purchased
|
|
28
|
|
|
5
|
|
|
27
|
|
|
19
|
|
|
23
|
|
|
Securities sold under repurchase agreements
|
|
100
|
|
|
104
|
|
|
96
|
|
|
90
|
|
|
78
|
|
|
Federal Home Loan Bank advances
|
|
796
|
|
|
728
|
|
|
711
|
|
|
706
|
|
|
691
|
|
|
Subordinated debentures and term loans
|
|
1,785
|
|
|
1,665
|
|
|
1,666
|
|
|
1,670
|
|
|
1,660
|
|
|
Total Interest Expense
|
|
6,772
|
|
|
6,440
|
|
|
6,215
|
|
|
6,171
|
|
|
5,968
|
|
|
NET INTEREST INCOME
|
|
54,455
|
|
|
50,074
|
|
|
50,323
|
|
|
49,031
|
|
|
46,976
|
|
|
Provision for loan losses
|
|
550
|
|
|
|
|
|
|
417
|
|
|
|
|
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
|
|
53,905
|
|
|
50,074
|
|
|
50,323
|
|
|
48,614
|
|
|
46,976
|
|
|
OTHER INCOME
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts
|
|
4,145
|
|
|
4,118
|
|
|
4,445
|
|
|
4,090
|
|
|
3,548
|
|
|
Fiduciary activities
|
|
2,494
|
|
|
2,138
|
|
|
2,242
|
|
|
2,309
|
|
|
2,507
|
|
|
Other customer fees
|
|
5,059
|
|
|
4,534
|
|
|
4,156
|
|
|
4,602
|
|
|
3,667
|
|
|
Commission income
|
|
|
|
|
|
4
|
|
|
1,815
|
|
|
2,328
|
|
|
Earnings on cash surrender value of life insurance
|
|
1,476
|
|
|
822
|
|
|
710
|
|
|
640
|
|
|
747
|
|
|
Net gains and fees on sales of loans
|
|
1,460
|
|
|
1,308
|
|
|
1,905
|
|
|
1,781
|
|
|
1,489
|
|
|
Net realized gains (losses) on sales of available for sale securities
|
|
997
|
|
|
623
|
|
|
1,115
|
|
|
(93
|
)
|
|
1,025
|
|
|
Gain on sale of insurance subsidiary
|
|
|
|
|
|
|
|
8,265
|
|
|
|
|
Other income
|
|
690
|
|
|
1,224
|
|
|
2,322
|
|
|
1,224
|
|
|
921
|
|
|
Total Other Income
|
|
16,321
|
|
|
14,767
|
|
|
16,899
|
|
|
24,633
|
|
|
16,232
|
|
|
OTHER EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits
|
|
27,337
|
|
|
25,796
|
|
|
25,137
|
|
|
26,434
|
|
|
24,541
|
|
|
Net occupancy
|
|
4,022
|
|
|
3,649
|
|
|
3,726
|
|
|
3,503
|
|
|
3,790
|
|
|
Equipment
|
|
3,238
|
|
|
2,683
|
|
|
2,698
|
|
|
2,840
|
|
|
2,566
|
|
|
Marketing
|
|
737
|
|
|
915
|
|
|
847
|
|
|
951
|
|
|
780
|
|
|
Outside data processing fees
|
|
2,069
|
|
|
1,632
|
|
|
1,992
|
|
|
1,768
|
|
|
1,717
|
|
|
Printing and office supplies
|
|
364
|
|
|
343
|
|
|
343
|
|
|
303
|
|
|
364
|
|
|
Core deposit amortization
|
|
978
|
|
|
692
|
|
|
693
|
|
|
729
|
|
|
721
|
|
|
FDIC assessments
|
|
950
|
|
|
939
|
|
|
958
|
|
|
895
|
|
|
863
|
|
|
Other real estate owned and foreclosure expenses
|
|
1,235
|
|
|
1,701
|
|
|
1,835
|
|
|
1,372
|
|
|
1,229
|
|
|
Professional and other outside services
|
|
2,162
|
|
|
3,544
|
|
|
1,686
|
|
|
3,134
|
|
|
1,491
|
|
|
Other expenses
|
|
3,867
|
|
|
4,352
|
|
|
3,683
|
|
|
4,494
|
|
|
3,140
|
|
|
Total Other Expenses
|
|
46,959
|
|
|
46,246
|
|
|
43,598
|
|
|
46,423
|
|
|
41,202
|
|
|
INCOME BEFORE INCOME TAX
|
|
23,267
|
|
|
18,595
|
|
|
23,624
|
|
|
26,824
|
|
|
22,006
|
|
|
Income tax expense
|
|
5,574
|
|
|
4,418
|
|
|
6,557
|
|
|
8,856
|
|
|
5,834
|
|
|
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS
|
|
$
|
17,693
|
|
|
$
|
14,177
|
|
|
$
|
17,067
|
|
|
$
|
17,968
|
|
|
$
|
16,172
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Data:
|
|
|
|
|
|
|
|
|
|
|
|
Basic Net Income Available to Common Stockholders
|
|
$
|
0.43
|
|
|
$
|
0.37
|
|
|
$
|
0.46
|
|
|
$
|
0.47
|
|
|
$
|
0.43
|
|
|
Diluted Net Income Available to Common Stockholders
|
|
$
|
0.43
|
|
|
$
|
0.37
|
|
|
$
|
0.45
|
|
|
$
|
0.47
|
|
|
$
|
0.43
|
|
|
Cash Dividends Paid
|
|
$
|
0.11
|
|
|
$
|
0.11
|
|
|
$
|
0.11
|
|
|
$
|
0.11
|
|
|
$
|
0.08
|
|
|
Average Diluted Shares Outstanding (in thousands)
|
|
40,917
|
|
|
38,191
|
|
|
38,118
|
|
|
38,043
|
|
|
38,000
|
|
|
FINANCIAL RATIOS:
|
|
|
|
|
|
|
|
|
|
|
|
Return on Average Assets
|
|
1.05
|
%
|
|
0.90
|
%
|
|
1.11
|
%
|
|
1.19
|
%
|
|
1.11
|
%
|
|
Return on Average Stockholders' Equity
|
|
8.21
|
|
|
7.32
|
|
|
8.99
|
|
|
9.63
|
|
|
8.81
|
|
|
Return on Average Common Stockholders' Equity
|
|
8.21
|
|
|
7.32
|
|
|
8.99
|
|
|
9.63
|
|
|
8.81
|
|
|
Average Earning Assets to Average Assets
|
|
89.28
|
|
|
90.11
|
|
|
89.99
|
|
|
89.63
|
|
|
89.42
|
|
|
Allowance for Loan Losses as % of Total Loans
|
|
1.32
|
|
|
1.33
|
|
|
1.45
|
|
|
1.47
|
|
|
1.58
|
|
|
Net Charge Off's as % of Average Loans (Annualized)
|
|
0.08
|
|
|
0.04
|
|
|
(0.03
|
)
|
|
0.06
|
|
|
0.12
|
|
|
Average Stockholders' Equity to Average Assets
|
|
12.78
|
|
|
12.29
|
|
|
12.34
|
|
|
12.31
|
|
|
12.62
|
|
|
Tax Equivalent Yield on Earning Assets
|
|
4.28
|
|
|
4.20
|
|
|
4.30
|
|
|
4.26
|
|
|
4.24
|
|
|
Cost of Supporting Liabilities
|
|
0.45
|
|
|
0.45
|
|
|
0.45
|
|
|
0.45
|
|
|
0.46
|
|
|
Net Interest Margin (FTE) on Earning Assets
|
|
3.83
|
|
|
3.75
|
|
|
3.85
|
|
|
3.81
|
|
|
3.78
|
|
|
Tangible Book Value Per Share
|
|
$
|
15.02
|
|
|
$
|
14.68
|
|
|
$
|
14.59
|
|
|
$
|
14.15
|
|
|
$
|
13.96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOANS
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars In Thousands)
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
Commercial and industrial loans
|
|
$
|
1,060,559
|
|
|
$
|
1,057,075
|
|
|
$
|
999,195
|
|
|
$
|
984,223
|
|
|
$
|
938,937
|
|
|
Agricultural production financing and other loans to farmers
|
|
92,137
|
|
|
97,711
|
|
|
91,354
|
|
|
93,695
|
|
|
95,652
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
391,621
|
|
|
366,704
|
|
|
298,250
|
|
|
256,082
|
|
|
237,036
|
|
|
Commercial and farmland
|
|
1,806,395
|
|
|
1,802,921
|
|
|
1,695,703
|
|
|
1,705,647
|
|
|
1,646,418
|
|
|
Residential
|
|
769,592
|
|
|
786,105
|
|
|
677,767
|
|
|
689,621
|
|
|
640,451
|
|
|
Home Equity
|
|
353,946
|
|
|
348,613
|
|
|
318,949
|
|
|
302,403
|
|
|
286,914
|
|
|
Individuals' loans for household and other personal expenditures
|
|
73,622
|
|
|
74,717
|
|
|
71,893
|
|
|
62,785
|
|
|
70,223
|
|
|
Lease financing receivables, net of unearned income
|
|
461
|
|
|
588
|
|
|
614
|
|
|
742
|
|
|
853
|
|
|
Other commercial loans
|
|
161,574
|
|
|
159,388
|
|
|
167,990
|
|
|
143,007
|
|
|
49,048
|
|
|
Loans
|
|
4,709,907
|
|
|
4,693,822
|
|
|
4,321,715
|
|
|
4,238,205
|
|
|
3,965,532
|
|
|
Allowance for loan losses
|
|
(62,086
|
)
|
|
(62,453
|
)
|
|
(62,861
|
)
|
|
(62,550
|
)
|
|
(62,801
|
)
|
|
NET LOANS
|
|
$
|
4,647,821
|
|
|
$
|
4,631,369
|
|
|
$
|
4,258,854
|
|
|
$
|
4,175,655
|
|
|
$
|
3,902,731
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSITS
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars In Thousands)
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
Demand deposits
|
|
$
|
2,590,603
|
|
|
$
|
2,576,283
|
|
|
$
|
2,244,848
|
|
|
$
|
2,211,154
|
|
|
$
|
2,116,135
|
|
Savings deposits
|
|
1,549,304
|
|
|
1,518,722
|
|
|
1,460,244
|
|
|
1,439,255
|
|
|
1,402,421
|
|
Certificates and other time deposits of $100,000 or more
|
|
304,559
|
|
|
323,698
|
|
|
286,988
|
|
|
295,159
|
|
|
283,313
|
|
Other certificates and time deposits
|
|
536,120
|
|
|
556,476
|
|
|
499,286
|
|
|
517,153
|
|
|
516,500
|
|
Brokered deposits
|
|
330,484
|
|
|
314,468
|
|
|
323,223
|
|
|
326,856
|
|
|
329,706
|
|
TOTAL DEPOSITS
|
|
$
|
5,311,070
|
|
|
$
|
5,289,647
|
|
|
$
|
4,814,589
|
|
|
$
|
4,789,577
|
|
|
$
|
4,648,075
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in Thousands)
|
|
For the Three Months Ended
|
|
|
|
March 31, 2016
|
|
|
March 31, 2015
|
|
|
|
|
|
Interest
|
|
|
|
|
|
|
Interest
|
|
|
|
|
|
Average
|
|
Income /
|
|
Average
|
|
|
Average
|
|
Income /
|
|
Average
|
|
|
|
Balance
|
|
Expense
|
|
Rate
|
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing time deposits
|
|
$
|
75,709
|
|
|
$
|
106
|
|
|
0.56
|
%
|
|
|
$
|
56,907
|
|
|
$
|
36
|
|
|
0.25
|
%
|
|
Federal Reserve and Federal Home Loan Bank stock
|
|
37,632
|
|
|
480
|
|
|
5.10
|
|
|
|
41,351
|
|
|
550
|
|
|
5.32
|
|
|
Investment Securities: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
716,486
|
|
|
4,328
|
|
|
2.42
|
|
|
|
736,378
|
|
|
4,723
|
|
|
2.57
|
|
|
Tax-Exempt (2)
|
|
520,922
|
|
|
6,937
|
|
|
5.33
|
|
|
|
433,531
|
|
|
5,899
|
|
|
5.44
|
|
|
Total Investment Securities
|
|
1,237,408
|
|
|
11,265
|
|
|
3.64
|
|
|
|
1,169,909
|
|
|
10,622
|
|
|
3.63
|
|
|
Loans held for sale
|
|
6,247
|
|
|
122
|
|
|
7.81
|
|
|
|
4,927
|
|
|
110
|
|
|
8.93
|
|
|
Loans: (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
3,449,451
|
|
|
38,864
|
|
|
4.51
|
|
|
|
3,041,242
|
|
|
34,169
|
|
|
4.49
|
|
|
Real Estate Mortgage
|
|
575,266
|
|
|
6,394
|
|
|
4.45
|
|
|
|
459,794
|
|
|
4,849
|
|
|
4.22
|
|
|
Installment
|
|
456,654
|
|
|
5,109
|
|
|
4.48
|
|
|
|
394,063
|
|
|
4,424
|
|
|
4.49
|
|
|
Tax-Exempt (2)
|
|
181,950
|
|
|
2,023
|
|
|
4.45
|
|
|
|
36,788
|
|
|
382
|
|
|
4.15
|
|
|
Total Loans
|
|
4,669,568
|
|
|
52,512
|
|
|
4.50
|
|
|
|
3,936,814
|
|
|
43,934
|
|
|
4.46
|
|
|
Total Earning Assets
|
|
6,020,317
|
|
|
64,363
|
|
|
4.28
|
|
|
|
5,204,981
|
|
|
55,142
|
|
|
4.24
|
|
|
Net unrealized gain on securities available for sale
|
|
10,005
|
|
|
|
|
|
|
|
14,480
|
|
|
|
|
|
|
Allowance for loan losses
|
|
(63,213
|
)
|
|
|
|
|
|
|
(63,429
|
)
|
|
|
|
|
|
Cash and cash equivalents
|
|
101,913
|
|
|
|
|
|
|
|
98,791
|
|
|
|
|
|
|
Premises and equipment
|
|
96,698
|
|
|
|
|
|
|
|
77,707
|
|
|
|
|
|
|
Other assets
|
|
577,595
|
|
|
|
|
|
|
|
488,544
|
|
|
|
|
|
|
Total Assets
|
|
$
|
6,743,315
|
|
|
|
|
|
|
|
$
|
5,821,074
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing NOW deposits
|
|
$
|
1,300,266
|
|
|
$
|
544
|
|
|
0.17
|
%
|
|
|
$
|
1,030,433
|
|
|
$
|
252
|
|
|
0.10
|
%
|
|
Money market deposits
|
|
865,932
|
|
|
491
|
|
|
0.23
|
|
|
|
823,761
|
|
|
412
|
|
|
0.20
|
|
|
Savings deposits
|
|
689,305
|
|
|
135
|
|
|
0.08
|
|
|
|
571,751
|
|
|
159
|
|
|
0.11
|
|
|
Certificates and other time deposits
|
|
1,186,458
|
|
|
2,893
|
|
|
0.98
|
|
|
|
1,126,098
|
|
|
2,693
|
|
|
0.96
|
|
|
Total Interest-bearing Deposits
|
|
4,041,961
|
|
|
4,063
|
|
|
0.40
|
|
|
|
3,552,043
|
|
|
3,516
|
|
|
0.40
|
|
|
Borrowings
|
|
520,087
|
|
|
2,709
|
|
|
2.08
|
|
|
|
437,864
|
|
|
2,452
|
|
|
2.24
|
|
|
Total Interest-bearing Liabilities
|
|
4,562,048
|
|
|
6,772
|
|
|
0.59
|
|
|
|
3,989,907
|
|
|
5,968
|
|
|
0.60
|
|
|
Noninterest-bearing deposits
|
|
1,255,328
|
|
|
|
|
|
|
|
1,053,095
|
|
|
|
|
|
|
Other liabilities
|
|
64,287
|
|
|
|
|
|
|
|
43,561
|
|
|
|
|
|
|
Total Liabilities
|
|
5,881,663
|
|
|
|
|
|
|
|
5,086,563
|
|
|
|
|
|
|
Stockholders' Equity
|
|
861,652
|
|
|
|
|
|
|
|
734,511
|
|
|
|
|
|
|
Total Liabilities and Stockholders' Equity
|
|
$
|
6,743,315
|
|
|
6,772
|
|
|
0.45
|
|
|
|
$
|
5,821,074
|
|
|
5,968
|
|
|
0.46
|
|
|
Net Interest Income
|
|
|
|
$
|
57,591
|
|
|
|
|
|
|
|
$
|
49,174
|
|
|
|
|
Net Interest Margin
|
|
|
|
|
|
3.83
|
%
|
|
|
|
|
|
|
3.78
|
%
|
|
(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 2016 and 2015. These totals equal $3,136 and $2,198 for
the three months ended March 31, 2016 and 2015, respectively.
|
|
(3) Non accruing loans have been included in the average
balances.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160426006170/en/
Copyright Business Wire 2016