First Merchants Corporation Announces Third Quarter 2017 Results
First Merchants Corporation (NASDAQ:FRME) reported record third quarter 2017 net income of $24.4 million, compared to $21.1
million during the third quarter of 2016. Earnings per share for the period totaled $.50 per share, which included $.11 per share
of acquisition expenses, compared to $.51 during the same period in 2016. The acquisition expenses in the quarter totaled $7.9
million and were primarily related to the July 14, 2017 acquisition of Independent Alliance Banks, Inc.
Year-to-date net income totaled a record $71.7 million, compared to $58.8 million during the same period in 2016. Earnings per
share for the nine months ended September 30, 2017 totaled $1.63 per share, an increase of $.20 per share, or 14 percent, over the
same period in 2016. In the first nine months of 2017, acquisition expenses related to the completion of The Arlington Bank and
Independent Alliance Bank acquisitions, totaled $10.8 million, or $.16 per share.
Michael C. Rechin, President and Chief Executive Officer, stated, “First Merchants achieved outstanding financial results in a
special quarter for our clients, teammates and shareholders. We had several accomplishments to include building the First Merchants
franchise, adding capital strength and growing earnings power. The addition of Independent Alliance Bank into First Merchants
establishes a significant presence in the Fort Wayne market led by strong local management. Our organic balance sheet growth
throughout the company demonstrates our commitment in vibrant and growing communities. When coupled with a wider net interest
margin, the company produced record net interest income.”
Total assets reached a record $9.0 billion as of quarter-end and loans totaled a record $6.5 billion, compared to $7.0 billion
and $5.0 billion, as of September 30, 2016 representing increases of 28.9 and 30.4 percent, respectively. Total deposits reached
record levels as well, totaling $6.9 billion as of September 30, 2017, representing a 26.9 percent increase. Of the increase in
total loans and total deposits, the acquisitions represent 19.3 percent and 20.5 percent, respectively. Tangible common equity also
increased to record levels for the quarter totaling $817 million, or $16.62 per share, compared to $647 million, or $15.86 per
share, as of September 30, 2016.
Net-interest income totaled a record $74.4 million for the quarter and net-interest margin increased by 9 basis points over the
third quarter of 2016, totaling 4.03 percent. Yields on earning assets totaled 4.56 percent and the cost of supporting liabilities
totaled .53 percent. Fair value accretion added 17 basis points to net-interest margin this quarter, compared to 24 basis points in
the third quarter of 2016.
Non-interest income totaled $18.7 million for the quarter, up $1.8 million from the third quarter 2016 total of $16.9 million.
Non-interest expense totaled $58.7 million for the quarter, up from $44.1 million during the third quarter of 2016. Of the
increase, $7.9 million was the result of acquisition-related expenses.
The Corporation’s provision expense totaled $2.1 million compared to $1.9 million during the same period in 2016. The increase
in provision expense, along with net recoveries of $800,000, provided allowance coverage for organic loan growth of 9.2 percent
annualized. The allowance for loan losses totals $73.4 million as of September 30, 2017, up from $63.5 million as of September 30,
2016. Non-accrual loans totaled $32.3 million as of quarter-end and the allowance is 1.13 percent of total loans and 1.44 percent
of non-purchased loans.
As of September 30, 2017, the Corporation’s total risk-based capital ratio equaled 13.76 percent, common equity tier 1 capital
ratio equaled 11.03 percent, and the tangible common equity ratio totaled 9.39 percent.
CONFERENCE CALL
First Merchants Corporation will conduct a third quarter earnings conference call and web cast at 2:30 p.m. (ET) on Thursday,
October 26, 2017.
To participate, dial (Toll Free) 877-507-0578 and reference First Merchants Corporation's third quarter earnings release.
International callers please call +1 412-317-1073. A replay of the call will be available until November 26, 2017. 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 10112760.
In order to view the web cast and presentation slides, please go to http://services.choruscall.com/links/frme171026.html during the time of the call. A replay of the web cast will
be available until October 26, 2018.
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 Lafayette Bank & Trust; iAB Financial Bank; and
First Merchants Private Wealth Advisors (each 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 release contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements can often, but not always, be identified by the use of words like
“believe”, “continue”, “pattern”, “estimate”, “project”, “intend”, “anticipate”, “expect” and similar expressions or future or
conditional verbs such as “will”, would”, “should”, “could”, “might”, “can”, “may”, or similar expressions. These statements
include statements of First Merchants’ goals, intentions and expectations; statements regarding the First Merchants’ business plan
and growth strategies; statements regarding the asset quality of First Merchants’ loan and investment portfolios; and estimates of
First Merchants’ risks and future costs and benefits. These forward-looking statements are subject to significant risks,
assumptions and uncertainties that may cause results to differ materially from those set forth in forward-looking statements,
including, among other things: possible changes in monetary and fiscal policies, and laws and regulations; the effects of easing
restrictions on participants in the financial services industry; the cost and other effects of legal and administrative cases;
possible changes in the credit worthiness of customers and the possible impairment of collectability of loans; fluctuations in
market rates of interest; competitive factors in the banking industry; changes in the banking legislation or regulatory
requirements of federal and state agencies applicable to bank holding companies and banks like First Merchants’ affiliate bank;
continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; changes in
market, economic, operational, liquidity, credit and interest rate risks associated with the First Merchants’ business; and other
risks and factors identified in each of First Merchants’ filings with the Securities and Exchange Commission. First Merchants does
not undertake any obligation to update any forward-looking statement, whether written or oral, relating to the matters discussed in
this press release. In addition, First Merchants’ past results of operations do not necessarily indicate its anticipated future
results.
|
|
|
|
|
| CONSOLIDATED BALANCE SHEETS |
|
|
|
|
| (Dollars In Thousands) |
|
September 30, |
|
|
2017 |
|
2016 |
| ASSETS |
|
|
|
|
| Cash and cash equivalents |
|
$ |
146,607 |
|
|
$ |
99,602 |
|
| Interest-bearing time deposits |
|
72,950 |
|
|
33,803 |
|
| Investment securities |
|
1,468,887 |
|
|
1,300,428 |
|
| Loans held for sale |
|
4,514 |
|
|
1,482 |
|
| Loans |
|
6,483,448 |
|
|
4,973,844 |
|
| Less: Allowance for loan losses |
|
(73,354 |
) |
|
(63,456 |
) |
| Net loans |
|
6,410,094 |
|
|
4,910,388 |
|
| Premises and equipment |
|
102,485 |
|
|
95,540 |
|
| Federal Home Loan Bank stock |
|
23,825 |
|
|
18,044 |
|
| Interest receivable |
|
32,366 |
|
|
23,652 |
|
| Goodwill and other intangibles |
|
478,558 |
|
|
259,844 |
|
| Cash surrender value of life insurance |
|
222,437 |
|
|
201,856 |
|
| Other real estate owned |
|
11,912 |
|
|
10,242 |
|
| Tax asset, deferred and receivable |
|
36,024 |
|
|
31,779 |
|
| Other assets |
|
38,744 |
|
|
35,692 |
|
| TOTAL ASSETS |
|
$ |
9,049,403 |
|
|
$ |
7,022,352 |
|
| LIABILITIES |
|
|
|
|
| Deposits: |
|
|
|
|
| Noninterest-bearing |
|
$ |
1,662,814 |
|
|
$ |
1,307,886 |
|
| Interest-bearing |
|
5,248,205 |
|
|
4,136,354 |
|
| Total Deposits |
|
6,911,019 |
|
|
5,444,240 |
|
| Borrowings: |
|
|
|
|
| Federal funds purchased |
|
100,000 |
|
|
58,358 |
|
| Securities sold under repurchase agreements |
|
142,107 |
|
|
138,671 |
|
| Federal Home Loan Bank advances |
|
406,820 |
|
|
297,022 |
|
| Subordinated debentures and term loans |
|
139,686 |
|
|
128,288 |
|
| Total Borrowings |
|
788,613 |
|
|
622,339 |
|
| Interest payable |
|
4,956 |
|
|
3,733 |
|
| Other liabilities |
|
61,695 |
|
|
51,175 |
|
| Total Liabilities |
|
7,766,283 |
|
|
6,121,487 |
|
| STOCKHOLDERS' EQUITY |
|
|
|
|
| Cumulative Preferred Stock, $1,000 par value, $1,000 liquidation value: |
|
|
|
|
| Authorized -- 600 shares |
|
|
|
|
| Issued and outstanding - 125 shares |
|
125 |
|
|
125 |
|
| Common Stock, $.125 stated value: |
|
|
|
|
| Authorized -- 100,000,000 and 50,000,000 shares (1) |
|
|
|
|
| Issued and outstanding - 49,140,594 and 40,799,025 shares |
|
6,143 |
|
|
5,100 |
|
| Additional paid-in capital |
|
833,451 |
|
|
506,848 |
|
| Retained earnings |
|
449,759 |
|
|
384,868 |
|
| Accumulated other comprehensive income (loss) |
|
(6,358 |
) |
|
3,924 |
|
| Total Stockholders' Equity |
|
1,283,120 |
|
|
900,865 |
|
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
|
$ |
9,049,403 |
|
|
$ |
7,022,352 |
|
(1) On May 1, 2017, the shareholders of First Merchants Corporation approved an amendment to the Articles of
Incorporation to increase the number of shares of common stock authorized to issue from 50,000,000 to 100,000,000 shares.
|
|
|
|
|
| CONSOLIDATED STATEMENTS OF INCOME |
|
Three Months Ended |
|
Nine Months Ended |
| (Dollars In Thousands, Except Per Share Amounts) |
|
September 30, |
|
September 30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
| INTEREST INCOME |
|
|
|
|
|
|
|
|
| Loans receivable: |
|
|
|
|
|
|
|
|
| Taxable |
|
$ |
71,491 |
|
|
$ |
53,819 |
|
|
$ |
187,234 |
|
|
$ |
156,407 |
| Tax-exempt |
|
2,851 |
|
|
1,649 |
|
|
7,676 |
|
|
4,429 |
| Investment securities: |
|
|
|
|
|
|
|
|
| Taxable |
|
4,524 |
|
|
3,992 |
|
|
13,012 |
|
|
12,522 |
| Tax-exempt |
|
5,455 |
|
|
4,668 |
|
|
15,549 |
|
|
13,760 |
| Deposits with financial institutions |
|
284 |
|
|
55 |
|
|
442 |
|
|
283 |
| Federal Reserve and Federal Home Loan Bank stock |
|
242 |
|
|
193 |
|
|
635 |
|
|
906 |
| Total Interest Income |
|
84,847 |
|
|
64,376 |
|
|
224,548 |
|
|
188,307 |
| INTEREST EXPENSE |
|
|
|
|
|
|
|
|
| Deposits |
|
6,710 |
|
|
3,926 |
|
|
15,971 |
|
|
12,028 |
| Federal funds purchased |
|
175 |
|
|
27 |
|
|
506 |
|
|
62 |
| Securities sold under repurchase agreements |
|
133 |
|
|
91 |
|
|
331 |
|
|
283 |
| Federal Home Loan Bank advances |
|
1,464 |
|
|
853 |
|
|
3,619 |
|
|
2,467 |
| Subordinated debentures and term loans |
|
1,945 |
|
|
1,797 |
|
|
5,602 |
|
|
5,368 |
| Total Interest Expense |
|
10,427 |
|
|
6,694 |
|
|
26,029 |
|
|
20,208 |
| NET INTEREST INCOME |
|
74,420 |
|
|
57,682 |
|
|
198,519 |
|
|
168,099 |
| Provision for loan losses |
|
2,083 |
|
|
1,900 |
|
|
7,343 |
|
|
3,240 |
| NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES |
|
72,337 |
|
|
55,782 |
|
|
191,176 |
|
|
164,859 |
| OTHER INCOME |
|
|
|
|
|
|
|
|
| Service charges on deposit accounts |
|
5,044 |
|
|
4,667 |
|
|
13,656 |
|
|
13,228 |
| Fiduciary activities |
|
2,995 |
|
|
2,448 |
|
|
8,244 |
|
|
7,318 |
| Other customer fees |
|
5,341 |
|
|
4,777 |
|
|
15,610 |
|
|
14,531 |
| Earnings on cash surrender value of life insurance |
|
1,575 |
|
|
614 |
|
|
5,444 |
|
|
3,387 |
| Net gains and fees on sales of loans |
|
2,317 |
|
|
1,989 |
|
|
5,209 |
|
|
5,166 |
| Net realized gains on sales of available for sale securities |
|
332 |
|
|
839 |
|
|
1,497 |
|
|
2,542 |
| Other income |
|
1,064 |
|
|
1,527 |
|
|
2,288 |
|
|
2,911 |
| Total Other Income |
|
18,668 |
|
|
16,861 |
|
|
51,948 |
|
|
49,083 |
| OTHER EXPENSES |
|
|
|
|
|
|
|
|
| Salaries and employee benefits |
|
33,244 |
|
|
26,651 |
|
|
86,052 |
|
|
79,558 |
| Net occupancy |
|
4,371 |
|
|
4,348 |
|
|
12,552 |
|
|
12,429 |
| Equipment |
|
3,478 |
|
|
2,947 |
|
|
9,192 |
|
|
9,428 |
| Marketing |
|
1,021 |
|
|
630 |
|
|
2,378 |
|
|
2,218 |
| Outside data processing fees |
|
3,162 |
|
|
2,382 |
|
|
8,864 |
|
|
6,476 |
| Printing and office supplies |
|
366 |
|
|
314 |
|
|
905 |
|
|
1,047 |
| Intangible asset amortization |
|
1,698 |
|
|
978 |
|
|
3,592 |
|
|
2,933 |
| FDIC assessments |
|
704 |
|
|
534 |
|
|
1,853 |
|
|
2,486 |
| Other real estate owned and foreclosure expenses |
|
330 |
|
|
637 |
|
|
1,592 |
|
|
2,303 |
| Professional and other outside services |
|
5,843 |
|
|
1,242 |
|
|
10,843 |
|
|
4,882 |
| Other expenses |
|
4,491 |
|
|
3,452 |
|
|
11,300 |
|
|
11,665 |
| Total Other Expenses |
|
58,708 |
|
|
44,115 |
|
|
149,123 |
|
|
135,425 |
| INCOME BEFORE INCOME TAX |
|
32,297 |
|
|
28,528 |
|
|
94,001 |
|
|
78,517 |
| Income tax expense |
|
7,939 |
|
|
7,469 |
|
|
22,314 |
|
|
19,759 |
| NET INCOME AVAILABLE TO COMMON STOCKHOLDERS |
|
$ |
24,358 |
|
|
$ |
21,059 |
|
|
$ |
71,687 |
|
|
$ |
58,758 |
| Per Share Data: |
|
|
|
|
|
|
|
|
| Basic Net Income Available to Common Stockholders |
|
$ |
0.50 |
|
|
$ |
0.51 |
|
|
$ |
1.64 |
|
|
$ |
1.44 |
| Diluted Net Income Available to Common Stockholders |
|
$ |
0.50 |
|
|
$ |
0.51 |
|
|
$ |
1.63 |
|
|
$ |
1.43 |
| Cash Dividends Paid |
|
$ |
0.18 |
|
|
$ |
0.14 |
|
|
$ |
0.51 |
|
|
$ |
0.39 |
| Average Diluted Shares Outstanding (in thousands) |
|
48,644 |
|
|
41,026 |
|
|
44,063 |
|
|
40,970 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FINANCIAL HIGHLIGHTS |
|
|
|
|
|
|
|
|
| (Dollars in thousands) |
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
| NET CHARGE-OFFS |
|
$ |
(800 |
) |
|
$ |
630 |
|
|
$ |
26 |
|
|
$ |
2,237 |
|
|
|
|
|
|
|
|
|
|
| AVERAGE BALANCES: |
|
|
|
|
|
|
|
|
| Total Assets |
|
$ |
8,793,666 |
|
|
$ |
6,907,303 |
|
|
$ |
7,866,643 |
|
|
$ |
6,836,412 |
|
| Total Loans |
|
6,312,810 |
|
|
4,836,923 |
|
|
5,647,486 |
|
|
4,748,846 |
|
| Total Earning Assets |
|
7,840,403 |
|
|
6,198,206 |
|
|
7,064,659 |
|
|
6,116,952 |
|
| Total Deposits |
|
6,790,053 |
|
|
5,428,453 |
|
|
6,108,042 |
|
|
5,388,775 |
|
| Total Stockholders' Equity |
|
1,244,472 |
|
|
896,934 |
|
|
1,048,420 |
|
|
878,302 |
|
|
|
|
|
|
|
|
|
|
| FINANCIAL RATIOS: |
|
|
|
|
|
|
|
|
| Return on Average Assets |
|
1.11 |
% |
|
1.22 |
% |
|
1.22 |
% |
|
1.15 |
% |
| Return on Average Stockholders' Equity |
|
7.83 |
|
|
9.39 |
|
|
9.12 |
|
|
8.92 |
|
| Return on Average Common Stockholders' Equity |
|
7.83 |
|
|
9.39 |
|
|
9.12 |
|
|
8.92 |
|
| Average Earning Assets to Average Assets |
|
89.16 |
|
|
89.73 |
|
|
89.81 |
|
|
89.48 |
|
| Allowance for Loan Losses as % of Total Loans |
|
1.13 |
|
|
1.28 |
|
|
1.13 |
|
|
1.28 |
|
| Net Charge-offs as % of Average Loans (Annualized) |
|
(0.05 |
) |
|
0.05 |
|
|
— |
|
|
0.06 |
|
| Average Stockholders' Equity to Average Assets |
|
14.15 |
|
|
12.99 |
|
|
13.33 |
|
|
12.85 |
|
| Tax Equivalent Yield on Earning Assets |
|
4.56 |
|
|
4.37 |
|
|
4.47 |
|
|
4.32 |
|
| Cost of Supporting Liabilities |
|
0.53 |
|
|
0.43 |
|
|
0.49 |
|
|
0.44 |
|
| Net Interest Margin (FTE) on Earning Assets |
|
4.03 |
|
|
3.94 |
|
|
3.98 |
|
|
3.88 |
|
| Efficiency Ratio |
|
58.30 |
|
|
55.12 |
|
|
55.05 |
|
|
58.01 |
|
| Tangible Common Book Value Per Share |
|
$ |
16.62 |
|
|
$ |
15.86 |
|
|
$ |
16.62 |
|
|
$ |
15.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NON-PERFORMING ASSETS |
|
|
|
|
|
|
|
|
|
|
| (Dollars In Thousands) |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
|
2017 |
|
2017 |
|
2017 |
|
2016 |
|
2016 |
| Non-Accrual Loans |
|
$ |
32,253 |
|
|
$ |
27,347 |
|
|
$ |
27,920 |
|
|
$ |
29,998 |
|
|
$ |
34,105 |
|
| Renegotiated Loans |
|
626 |
|
|
384 |
|
|
876 |
|
|
4,747 |
|
|
3,940 |
|
| Non-Performing Loans (NPL) |
|
32,879 |
|
|
27,731 |
|
|
28,796 |
|
|
34,745 |
|
|
38,045 |
|
| Other Real Estate Owned |
|
11,912 |
|
|
11,893 |
|
|
8,293 |
|
|
8,966 |
|
|
10,242 |
|
| Non-Performing Assets (NPA) |
|
44,791 |
|
|
39,624 |
|
|
37,089 |
|
|
43,711 |
|
|
48,287 |
|
| 90+ Days Delinquent |
|
425 |
|
|
634 |
|
|
123 |
|
|
112 |
|
|
1,625 |
|
| NPAs & 90 Day Delinquent |
|
$ |
45,216 |
|
|
$ |
40,258 |
|
|
$ |
37,212 |
|
|
$ |
43,823 |
|
|
$ |
49,912 |
|
|
|
|
|
|
|
|
|
|
|
|
| Allowance for Loan Losses |
|
$ |
73,354 |
|
|
$ |
70,471 |
|
|
$ |
68,225 |
|
|
$ |
66,037 |
|
|
$ |
63,456 |
|
| Quarterly Net Charge-offs |
|
(800 |
) |
|
629 |
|
|
197 |
|
|
(164 |
) |
|
630 |
|
| NPAs / Actual Assets % |
|
0.49 |
% |
|
0.51 |
% |
|
0.51 |
% |
|
0.61 |
% |
|
0.69 |
% |
| NPAs & 90 Day / Actual Assets % |
|
0.50 |
% |
|
0.52 |
% |
|
0.51 |
% |
|
0.61 |
% |
|
0.71 |
% |
| NPAs / Actual Loans and OREO % |
|
0.69 |
% |
|
0.70 |
% |
|
0.70 |
% |
|
0.85 |
% |
|
0.97 |
% |
| Allowance for Loan Losses / Actual Loans (%) |
|
1.13 |
% |
|
1.25 |
% |
|
1.29 |
% |
|
1.28 |
% |
|
1.28 |
% |
| Net Charge-offs as % of Average Loans (Annualized) |
|
(0.05 |
)% |
|
0.05 |
% |
|
0.02 |
% |
|
(0.01 |
)% |
|
0.05 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CONSOLIDATED BALANCE SHEETS |
|
|
|
|
|
|
|
|
|
|
| (Dollars In Thousands) |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
|
2017 |
|
2017 |
|
2017 |
|
2016 |
|
2016 |
| ASSETS |
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
146,607 |
|
|
$ |
142,650 |
|
|
$ |
104,247 |
|
|
$ |
127,927 |
|
|
$ |
99,602 |
|
| Interest-bearing time deposits |
|
72,950 |
|
|
48,305 |
|
|
20,439 |
|
|
24,459 |
|
|
33,803 |
|
| Investment securities |
|
1,468,887 |
|
|
1,343,323 |
|
|
1,327,217 |
|
|
1,304,505 |
|
|
1,300,428 |
|
| Loans held for sale |
|
4,514 |
|
|
4,036 |
|
|
1,262 |
|
|
2,929 |
|
|
1,482 |
|
| Loans |
|
6,483,448 |
|
|
5,613,144 |
|
|
5,274,909 |
|
|
5,139,645 |
|
|
4,973,844 |
|
| Less: Allowance for loan losses |
|
(73,354 |
) |
|
(70,471 |
) |
|
(68,225 |
) |
|
(66,037 |
) |
|
(63,456 |
) |
| Net loans |
|
6,410,094 |
|
|
5,542,673 |
|
|
5,206,684 |
|
|
5,073,608 |
|
|
4,910,388 |
|
| Premises and equipment |
|
102,485 |
|
|
92,637 |
|
|
91,311 |
|
|
94,432 |
|
|
95,540 |
|
| Federal Home Loan Bank stock |
|
23,825 |
|
|
19,015 |
|
|
17,964 |
|
|
17,964 |
|
|
18,044 |
|
| Interest receivable |
|
32,366 |
|
|
27,597 |
|
|
25,174 |
|
|
26,194 |
|
|
23,652 |
|
| Goodwill and other intangibles |
|
478,558 |
|
|
309,686 |
|
|
257,963 |
|
|
258,866 |
|
|
259,844 |
|
| Cash surrender value of life insurance |
|
222,437 |
|
|
200,125 |
|
|
202,574 |
|
|
201,671 |
|
|
201,856 |
|
| Other real estate owned |
|
11,912 |
|
|
11,893 |
|
|
8,293 |
|
|
8,966 |
|
|
10,242 |
|
| Tax asset, deferred and receivable |
|
36,024 |
|
|
27,331 |
|
|
32,074 |
|
|
39,384 |
|
|
31,779 |
|
| Other assets |
|
38,744 |
|
|
35,758 |
|
|
30,991 |
|
|
30,706 |
|
|
35,692 |
|
| TOTAL ASSETS |
|
$ |
9,049,403 |
|
|
$ |
7,805,029 |
|
|
$ |
7,326,193 |
|
|
$ |
7,211,611 |
|
|
$ |
7,022,352 |
|
| LIABILITIES |
|
|
|
|
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
|
|
|
| Noninterest-bearing |
|
$ |
1,662,814 |
|
|
$ |
1,398,237 |
|
|
$ |
1,373,778 |
|
|
$ |
1,348,267 |
|
|
$ |
1,307,886 |
|
| Interest-bearing |
|
5,248,205 |
|
|
4,618,867 |
|
|
4,261,531 |
|
|
4,208,231 |
|
|
4,136,354 |
|
| Total Deposits |
|
6,911,019 |
|
|
6,017,104 |
|
|
5,635,309 |
|
|
5,556,498 |
|
|
5,444,240 |
|
| Borrowings: |
|
|
|
|
|
|
|
|
|
|
| Federal funds purchased |
|
100,000 |
|
|
134,608 |
|
|
102,000 |
|
|
120,349 |
|
|
58,358 |
|
| Securities sold under repurchase agreements |
|
142,107 |
|
|
127,884 |
|
|
139,007 |
|
|
146,480 |
|
|
138,671 |
|
| Federal Home Loan Bank advances |
|
406,820 |
|
|
312,715 |
|
|
338,919 |
|
|
298,923 |
|
|
297,022 |
|
| Subordinated debentures and term loans |
|
139,686 |
|
|
128,742 |
|
|
128,862 |
|
|
128,445 |
|
|
128,288 |
|
| Total Borrowings |
|
788,613 |
|
|
703,949 |
|
|
708,788 |
|
|
694,197 |
|
|
622,339 |
|
| Interest payable |
|
4,956 |
|
|
3,477 |
|
|
3,875 |
|
|
3,110 |
|
|
3,733 |
|
| Other liabilities |
|
61,695 |
|
|
45,383 |
|
|
48,751 |
|
|
56,149 |
|
|
51,175 |
|
| Total Liabilities |
|
7,766,283 |
|
|
6,769,913 |
|
|
6,396,723 |
|
|
6,309,954 |
|
|
6,121,487 |
|
| 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 -- 100,000,000 and 50,000,000 shares (1) |
|
|
|
|
|
|
|
|
|
|
| Issued and outstanding |
|
6,143 |
|
|
5,394 |
|
|
5,131 |
|
|
5,114 |
|
|
5,100 |
|
| Additional paid-in capital |
|
833,451 |
|
|
593,904 |
|
|
509,953 |
|
|
509,018 |
|
|
506,848 |
|
| Retained earnings |
|
449,759 |
|
|
434,309 |
|
|
417,983 |
|
|
400,981 |
|
|
384,868 |
|
| Accumulated other comprehensive income (loss) |
|
(6,358 |
) |
|
1,384 |
|
|
(3,722 |
) |
|
(13,581 |
) |
|
3,924 |
|
| Total Stockholders' Equity |
|
1,283,120 |
|
|
1,035,116 |
|
|
929,470 |
|
|
901,657 |
|
|
900,865 |
|
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
|
$ |
9,049,403 |
|
|
$ |
7,805,029 |
|
|
$ |
7,326,193 |
|
|
$ |
7,211,611 |
|
|
$ |
7,022,352 |
|
(1) On May 1, 2017, the shareholders of First Merchants Corporation approved an amendment to the Articles of
Incorporation to increase the number of shares of common stock authorized to issue from 50,000,000 to 100,000,000 shares.
|
|
|
|
|
|
|
|
|
|
|
| CONSOLIDATED STATEMENTS OF INCOME |
|
|
|
|
|
|
|
|
|
|
| (Dollars In Thousands, Except Per Share Amounts) |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
|
2017 |
|
2017 |
|
2017 |
|
2016 |
|
2016 |
| INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
| Loans receivable: |
|
|
|
|
|
|
|
|
|
|
| Taxable |
|
$ |
71,491 |
|
|
$ |
59,386 |
|
|
$ |
56,357 |
|
|
$ |
53,895 |
|
|
$ |
53,819 |
|
| Tax-exempt |
|
2,851 |
|
|
2,492 |
|
|
2,333 |
|
|
2,096 |
|
|
1,649 |
|
| Investment securities: |
|
|
|
|
|
|
|
|
|
|
| Taxable |
|
4,524 |
|
|
4,180 |
|
|
4,308 |
|
|
3,893 |
|
|
3,992 |
|
| Tax-exempt |
|
5,455 |
|
|
5,091 |
|
|
5,003 |
|
|
4,862 |
|
|
4,668 |
|
| Deposits with financial institutions |
|
284 |
|
|
114 |
|
|
44 |
|
|
67 |
|
|
55 |
|
| Federal Reserve and Federal Home Loan Bank stock |
|
242 |
|
|
204 |
|
|
189 |
|
|
192 |
|
|
193 |
|
| Total Interest Income |
|
84,847 |
|
|
71,467 |
|
|
68,234 |
|
|
65,005 |
|
|
64,376 |
|
| INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
| Deposits |
|
6,710 |
|
|
5,137 |
|
|
4,124 |
|
|
3,886 |
|
|
3,926 |
|
| Federal funds purchased |
|
175 |
|
|
103 |
|
|
228 |
|
|
40 |
|
|
27 |
|
| Securities sold under repurchase agreements |
|
133 |
|
|
110 |
|
|
88 |
|
|
91 |
|
|
91 |
|
| Federal Home Loan Bank advances |
|
1,464 |
|
|
1,177 |
|
|
978 |
|
|
797 |
|
|
853 |
|
| Subordinated debentures and term loans |
|
1,945 |
|
|
1,840 |
|
|
1,817 |
|
|
1,817 |
|
|
1,797 |
|
| Total Interest Expense |
|
10,427 |
|
|
8,367 |
|
|
7,235 |
|
|
6,631 |
|
|
6,694 |
|
| NET INTEREST INCOME |
|
74,420 |
|
|
63,100 |
|
|
60,999 |
|
|
58,374 |
|
|
57,682 |
|
| Provision for loan losses |
|
2,083 |
|
|
2,875 |
|
|
2,385 |
|
|
2,417 |
|
|
1,900 |
|
| NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES |
|
72,337 |
|
|
60,225 |
|
|
58,614 |
|
|
55,957 |
|
|
55,782 |
|
| OTHER INCOME |
|
|
|
|
|
|
|
|
|
|
| Service charges on deposit accounts |
|
5,044 |
|
|
4,438 |
|
|
4,174 |
|
|
4,534 |
|
|
4,667 |
|
| Fiduciary activities |
|
2,995 |
|
|
2,609 |
|
|
2,640 |
|
|
2,500 |
|
|
2,448 |
|
| Other customer fees |
|
5,341 |
|
|
5,406 |
|
|
4,863 |
|
|
4,784 |
|
|
4,777 |
|
| Earnings on cash surrender value of life insurance |
|
1,575 |
|
|
2,971 |
|
|
898 |
|
|
886 |
|
|
614 |
|
| Net gains and fees on sales of loans |
|
2,317 |
|
|
1,617 |
|
|
1,275 |
|
|
1,886 |
|
|
1,989 |
|
| Net realized gains on sales of available for sale securities |
|
332 |
|
|
567 |
|
|
598 |
|
|
847 |
|
|
839 |
|
| Other income |
|
1,064 |
|
|
826 |
|
|
398 |
|
|
683 |
|
|
1,527 |
|
| Total Other Income |
|
18,668 |
|
|
18,434 |
|
|
14,846 |
|
|
16,120 |
|
|
16,861 |
|
| OTHER EXPENSES |
|
|
|
|
|
|
|
|
|
|
| Salaries and employee benefits |
|
33,244 |
|
|
27,076 |
|
|
25,732 |
|
|
22,994 |
|
|
26,651 |
|
| Net occupancy |
|
4,371 |
|
|
3,965 |
|
|
4,216 |
|
|
4,568 |
|
|
4,348 |
|
| Equipment |
|
3,478 |
|
|
2,907 |
|
|
2,807 |
|
|
3,069 |
|
|
2,947 |
|
| Marketing |
|
1,021 |
|
|
792 |
|
|
565 |
|
|
790 |
|
|
630 |
|
| Outside data processing fees |
|
3,162 |
|
|
3,086 |
|
|
2,616 |
|
|
2,672 |
|
|
2,382 |
|
| Printing and office supplies |
|
366 |
|
|
275 |
|
|
264 |
|
|
301 |
|
|
314 |
|
| Intangible asset amortization |
|
1,698 |
|
|
991 |
|
|
903 |
|
|
977 |
|
|
978 |
|
| FDIC assessments |
|
704 |
|
|
579 |
|
|
570 |
|
|
550 |
|
|
534 |
|
| Other real estate owned and foreclosure expenses |
|
330 |
|
|
731 |
|
|
531 |
|
|
574 |
|
|
637 |
|
| Professional and other outside services |
|
5,843 |
|
|
3,266 |
|
|
1,734 |
|
|
1,634 |
|
|
1,242 |
|
| Other expenses |
|
4,491 |
|
|
3,648 |
|
|
3,161 |
|
|
3,805 |
|
|
3,452 |
|
| Total Other Expenses |
|
58,708 |
|
|
47,316 |
|
|
43,099 |
|
|
41,934 |
|
|
44,115 |
|
| INCOME BEFORE INCOME TAX |
|
32,297 |
|
|
31,343 |
|
|
30,361 |
|
|
30,143 |
|
|
28,528 |
|
| Income tax expense |
|
7,939 |
|
|
7,207 |
|
|
7,168 |
|
|
7,850 |
|
|
7,469 |
|
| NET INCOME AVAILABLE TO COMMON STOCKHOLDERS |
|
$ |
24,358 |
|
|
$ |
24,136 |
|
|
$ |
23,193 |
|
|
$ |
22,293 |
|
|
$ |
21,059 |
|
|
|
|
|
|
|
|
|
|
|
|
| Per Share Data: |
|
|
|
|
|
|
|
|
|
|
| Basic Net Income Available to Common Stockholders |
|
$ |
0.50 |
|
|
$ |
0.57 |
|
|
$ |
0.57 |
|
|
$ |
0.55 |
|
|
$ |
0.51 |
|
| Diluted Net Income Available to Common Stockholders |
|
$ |
0.50 |
|
|
$ |
0.57 |
|
|
$ |
0.56 |
|
|
$ |
0.55 |
|
|
$ |
0.51 |
|
| Cash Dividends Paid |
|
$ |
0.18 |
|
|
$ |
0.18 |
|
|
$ |
0.15 |
|
|
$ |
0.15 |
|
|
$ |
0.14 |
|
| Average Diluted Shares Outstanding (in thousands) |
|
48,644 |
|
|
42,244 |
|
|
41,221 |
|
|
41,124 |
|
|
41,026 |
|
| FINANCIAL RATIOS: |
|
|
|
|
|
|
|
|
|
|
| Return on Average Assets |
|
1.11 |
% |
|
1.28 |
% |
|
1.29 |
% |
|
1.26 |
% |
|
1.22 |
% |
| Return on Average Stockholders' Equity |
|
7.83 |
|
|
9.82 |
|
|
10.15 |
|
|
9.87 |
|
|
9.39 |
|
| Return on Average Common Stockholders' Equity |
|
7.83 |
|
|
9.82 |
|
|
10.15 |
|
|
9.87 |
|
|
9.39 |
|
| Average Earning Assets to Average Assets |
|
89.16 |
|
|
89.97 |
|
|
90.43 |
|
|
89.86 |
|
|
89.73 |
|
| Allowance for Loan Losses as % of Total Loans |
|
1.13 |
|
|
1.25 |
|
|
1.29 |
|
|
1.28 |
|
|
1.28 |
|
| Net Charge-offs as % of Average Loans (Annualized) |
|
(0.05 |
) |
|
0.05 |
|
|
0.02 |
|
|
(0.01 |
) |
|
0.05 |
|
| Average Stockholders' Equity to Average Assets |
|
14.15 |
|
|
12.98 |
|
|
12.67 |
|
|
12.75 |
|
|
12.99 |
|
| Tax Equivalent Yield on Earning Assets |
|
4.56 |
|
|
4.44 |
|
|
4.42 |
|
|
4.32 |
|
|
4.37 |
|
| Cost of Supporting Liabilities |
|
0.53 |
|
|
0.49 |
|
|
0.44 |
|
|
0.42 |
|
|
0.43 |
|
| Net Interest Margin (FTE) on Earning Assets |
|
4.03 |
|
|
3.95 |
|
|
3.98 |
|
|
3.90 |
|
|
3.94 |
|
| Efficiency Ratio |
|
58.30 |
|
|
53.61 |
|
|
52.61 |
|
|
52.18 |
|
|
55.12 |
|
| Tangible Common Book Value Per Share |
|
$ |
16.62 |
|
|
$ |
16.97 |
|
|
$ |
16.49 |
|
|
$ |
15.85 |
|
|
$ |
15.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LOANS |
|
|
|
|
|
|
|
|
|
|
| (Dollars In Thousands) |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
|
2017 |
|
2017 |
|
2017 |
|
2016 |
|
2016 |
| Commercial and industrial loans |
|
$ |
1,436,092 |
|
|
$ |
1,289,884 |
|
|
$ |
1,258,840 |
|
|
$ |
1,194,646 |
|
|
$ |
1,146,538 |
|
| Agricultural production financing and other loans to farmers |
|
117,751 |
|
|
75,746 |
|
|
77,021 |
|
|
79,689 |
|
|
93,169 |
|
| Real estate loans: |
|
|
|
|
|
|
|
|
|
|
| Construction |
|
498,862 |
|
|
442,389 |
|
|
336,931 |
|
|
418,703 |
|
|
368,241 |
|
| Commercial and farmland |
|
2,571,253 |
|
|
2,167,729 |
|
|
2,118,431 |
|
|
1,953,062 |
|
|
1,941,739 |
|
| Residential |
|
938,437 |
|
|
847,580 |
|
|
737,918 |
|
|
739,169 |
|
|
739,855 |
|
| Home equity |
|
502,240 |
|
|
436,038 |
|
|
423,708 |
|
|
418,525 |
|
|
398,837 |
|
| Individuals' loans for household and other personal expenditures |
|
86,406 |
|
|
79,887 |
|
|
77,590 |
|
|
77,479 |
|
|
76,497 |
|
| Lease financing receivables, net of unearned income |
|
3,877 |
|
|
232 |
|
|
261 |
|
|
311 |
|
|
380 |
|
| Other commercial loans |
|
328,530 |
|
|
273,659 |
|
|
244,209 |
|
|
258,061 |
|
|
208,588 |
|
| Loans |
|
6,483,448 |
|
|
5,613,144 |
|
|
5,274,909 |
|
|
5,139,645 |
|
|
4,973,844 |
|
| Allowance for loan losses |
|
(73,354 |
) |
|
(70,471 |
) |
|
(68,225 |
) |
|
(66,037 |
) |
|
(63,456 |
) |
| NET LOANS |
|
$ |
6,410,094 |
|
|
$ |
5,542,673 |
|
|
$ |
5,206,684 |
|
|
$ |
5,073,608 |
|
|
$ |
4,910,388 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| DEPOSITS |
|
|
|
|
|
|
|
|
|
|
| (Dollars In Thousands) |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
|
2017 |
|
2017 |
|
2017 |
|
2016 |
|
2016 |
| Demand deposits |
|
$ |
3,562,718 |
|
|
$ |
3,015,846 |
|
|
$ |
2,861,384 |
|
|
$ |
2,866,853 |
|
|
$ |
2,745,028 |
| Savings deposits |
|
1,884,705 |
|
|
1,708,478 |
|
|
1,565,174 |
|
|
1,560,752 |
|
|
1,545,372 |
| Certificates and other time deposits of $100,000 or more |
|
503,668 |
|
|
362,589 |
|
|
312,327 |
|
|
276,274 |
|
|
296,838 |
| Other certificates and time deposits |
|
585,042 |
|
|
511,935 |
|
|
476,741 |
|
|
471,247 |
|
|
498,203 |
| Brokered deposits |
|
374,886 |
|
|
418,256 |
|
|
419,683 |
|
|
381,372 |
|
|
358,799 |
| TOTAL DEPOSITS |
|
$ |
6,911,019 |
|
|
$ |
6,017,104 |
|
|
$ |
5,635,309 |
|
|
$ |
5,556,498 |
|
|
$ |
5,444,240 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
| (Dollars in Thousands) |
|
For the Three Months Ended |
|
|
September 30, 2017 |
|
September 30, 2016 |
|
|
|
|
Interest |
|
|
|
|
|
Interest |
|
|
|
|
Average |
|
Income / |
|
Average |
|
Average |
|
Income / |
|
Average |
|
|
Balance |
|
Expense |
|
Rate |
|
Balance |
|
Expense |
|
Rate |
| Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing time deposits |
|
$ |
139,905 |
|
|
$ |
284 |
|
|
0.81 |
% |
|
$ |
54,120 |
|
|
$ |
55 |
|
|
0.40 |
% |
| Federal Reserve and Federal Home Loan Bank stock |
|
23,146 |
|
|
242 |
|
|
4.18 |
|
|
18,095 |
|
|
193 |
|
|
4.24 |
|
| Investment Securities: (1) |
|
|
|
|
|
|
|
|
|
|
|
|
| Taxable |
|
718,965 |
|
|
4,524 |
|
|
2.52 |
|
|
729,223 |
|
|
3,992 |
|
|
2.18 |
|
| Tax-Exempt (2) |
|
645,577 |
|
|
8,392 |
|
|
5.20 |
|
|
559,845 |
|
|
7,182 |
|
|
5.10 |
|
| Total Investment Securities |
|
1,364,542 |
|
|
12,916 |
|
|
3.79 |
|
|
1,289,068 |
|
|
11,174 |
|
|
3.45 |
|
| Loans held for sale |
|
8,117 |
|
|
136 |
|
|
6.70 |
|
|
742 |
|
|
73 |
|
|
39.14 |
|
| Loans: (3) |
|
|
|
|
|
|
|
|
|
|
|
|
| Commercial |
|
4,556,653 |
|
|
55,266 |
|
|
4.85 |
|
|
3,556,187 |
|
|
41,653 |
|
|
4.66 |
|
| Real Estate Mortgage |
|
785,317 |
|
|
8,596 |
|
|
4.38 |
|
|
567,015 |
|
|
6,521 |
|
|
4.58 |
|
| Installment |
|
595,164 |
|
|
7,494 |
|
|
5.04 |
|
|
493,807 |
|
|
5,572 |
|
|
4.49 |
|
| Tax-Exempt (2) |
|
367,559 |
|
|
4,385 |
|
|
4.77 |
|
|
219,172 |
|
|
2,537 |
|
|
4.60 |
|
| Total Loans |
|
6,312,810 |
|
|
75,877 |
|
|
4.81 |
|
|
4,836,923 |
|
|
56,356 |
|
|
4.64 |
|
| Total Earning Assets |
|
7,840,403 |
|
|
89,319 |
|
|
4.56 |
|
|
6,198,206 |
|
|
67,778 |
|
|
4.37 |
|
| Net unrealized gain on securities available for sale |
|
7,733 |
|
|
|
|
|
|
11,738 |
|
|
|
|
|
| Allowance for loan losses |
|
(71,753 |
) |
|
|
|
|
|
(62,453 |
) |
|
|
|
|
| Cash and cash equivalents |
|
129,058 |
|
|
|
|
|
|
102,023 |
|
|
|
|
|
| Premises and equipment |
|
101,979 |
|
|
|
|
|
|
95,541 |
|
|
|
|
|
| Other assets |
|
786,246 |
|
|
|
|
|
|
562,248 |
|
|
|
|
|
| Total Assets |
|
$ |
8,793,666 |
|
|
|
|
|
|
$ |
6,907,303 |
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing NOW deposits |
|
$ |
1,834,965 |
|
|
$ |
1,706 |
|
|
0.37 |
% |
|
$ |
1,454,992 |
|
|
$ |
669 |
|
|
0.18 |
% |
| Money market deposits |
|
990,682 |
|
|
747 |
|
|
0.30 |
|
|
793,173 |
|
|
384 |
|
|
0.19 |
|
| Savings deposits |
|
887,201 |
|
|
203 |
|
|
0.09 |
|
|
754,401 |
|
|
171 |
|
|
0.09 |
|
| Certificates and other time deposits |
|
1,450,448 |
|
|
4,054 |
|
|
1.12 |
|
|
1,128,595 |
|
|
2,702 |
|
|
0.95 |
|
| Total Interest-bearing Deposits |
|
5,163,296 |
|
|
6,710 |
|
|
0.52 |
|
|
4,131,161 |
|
|
3,926 |
|
|
0.38 |
|
| Borrowings |
|
694,203 |
|
|
3,717 |
|
|
2.14 |
|
|
521,125 |
|
|
2,768 |
|
|
2.11 |
|
| Total Interest-bearing Liabilities |
|
5,857,499 |
|
|
10,427 |
|
|
0.71 |
|
|
4,652,286 |
|
|
6,694 |
|
|
0.57 |
|
| Noninterest-bearing deposits |
|
1,626,757 |
|
|
|
|
|
|
1,297,292 |
|
|
|
|
|
| Other liabilities |
|
64,938 |
|
|
|
|
|
|
60,791 |
|
|
|
|
|
| Total Liabilities |
|
7,549,194 |
|
|
|
|
|
|
6,010,369 |
|
|
|
|
|
| Stockholders' Equity |
|
1,244,472 |
|
|
|
|
|
|
896,934 |
|
|
|
|
|
| Total Liabilities and Stockholders' Equity |
|
$ |
8,793,666 |
|
|
10,427 |
|
|
0.53 |
|
|
$ |
6,907,303 |
|
|
6,694 |
|
|
0.43 |
|
| Net Interest Income |
|
|
|
$ |
78,892 |
|
|
|
|
|
|
$ |
61,084 |
|
|
|
| Net Interest Margin |
|
|
|
|
|
4.03 |
% |
|
|
|
|
|
3.94 |
% |
| (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 2017 and 2016. These totals equal $4,472 and $3,402 for the three
months ended September 30, 2017 and 2016, respectively. |
| |
| (3) Non accruing loans have been included in the average balances. |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
| (Dollars in Thousands) |
|
For the Nine Months Ended |
|
|
September 30, 2017 |
|
September 30, 2016 |
|
|
|
|
Interest |
|
|
|
|
|
Interest |
|
|
|
|
Average |
|
Income / |
|
Average |
|
Average |
|
Income / |
|
Average |
|
|
Balance |
|
Expense |
|
Rate |
|
Balance |
|
Expense |
|
Rate |
| Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing time deposits |
|
$ |
71,456 |
|
|
$ |
442 |
|
|
0.82 |
% |
|
$ |
76,440 |
|
|
$ |
283 |
|
|
0.49 |
% |
| Federal Reserve and Federal Home Loan Bank stock |
|
19,941 |
|
|
635 |
|
|
4.25 |
|
|
26,359 |
|
|
906 |
|
|
4.59 |
|
| Investment Securities: (1) |
|
|
|
|
|
|
|
|
|
|
|
|
| Taxable |
|
716,118 |
|
|
13,012 |
|
|
2.42 |
|
|
725,311 |
|
|
12,522 |
|
|
2.31 |
|
| Tax-Exempt (2) |
|
609,658 |
|
|
23,922 |
|
|
5.23 |
|
|
539,996 |
|
|
21,169 |
|
|
5.24 |
|
|
Total Investment Securities
|
|
1,325,776 |
|
|
36,934 |
|
|
3.71 |
|
|
1,265,307 |
|
|
33,691 |
|
|
3.56 |
|
| Loans held for sale |
|
4,875 |
|
|
245 |
|
|
6.70 |
|
|
3,541 |
|
|
291 |
|
|
10.98 |
|
| Loans: (3) |
|
|
|
|
|
|
|
|
|
|
|
|
| Commercial |
|
4,085,901 |
|
|
144,759 |
|
|
4.72 |
|
|
3,502,715 |
|
|
121,017 |
|
|
4.62 |
|
| Real Estate Mortgage |
|
660,435 |
|
|
21,946 |
|
|
4.43 |
|
|
570,330 |
|
|
19,032 |
|
|
4.46 |
|
| Installment |
|
558,106 |
|
|
20,284 |
|
|
4.85 |
|
|
473,645 |
|
|
16,067 |
|
|
4.53 |
|
| Tax-Exempt (2) |
|
338,169 |
|
|
11,809 |
|
|
4.66 |
|
|
198,615 |
|
|
6,814 |
|
|
4.58 |
|
| Total Loans |
|
5,647,486 |
|
|
199,043 |
|
|
4.70 |
|
|
4,748,846 |
|
|
163,221 |
|
|
4.59 |
|
| Total Earning Assets |
|
7,064,659 |
|
|
237,054 |
|
|
4.47 |
% |
|
6,116,952 |
|
|
198,101 |
|
|
4.32 |
% |
| Net unrealized gain on securities available for sale |
|
4,437 |
|
|
|
|
|
|
10,892 |
|
|
|
|
|
| Allowance for loan losses |
|
(69,269 |
) |
|
|
|
|
|
(62,633 |
) |
|
|
|
|
| Cash and cash equivalents |
|
128,866 |
|
|
|
|
|
|
102,767 |
|
|
|
|
|
| Premises and equipment |
|
95,707 |
|
|
|
|
|
|
96,284 |
|
|
|
|
|
| Other assets |
|
642,243 |
|
|
|
|
|
|
572,150 |
|
|
|
|
|
| Total Assets |
|
$ |
7,866,643 |
|
|
|
|
|
|
$ |
6,836,412 |
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing NOW deposits |
|
$ |
1,649,175 |
|
|
$ |
3,632 |
|
|
0.29 |
% |
|
$ |
1,395,036 |
|
|
$ |
1,850 |
|
|
0.18 |
% |
| Money market deposits |
|
894,450 |
|
|
1,688 |
|
|
0.25 |
|
|
835,968 |
|
|
1,377 |
|
|
0.22 |
|
| Savings deposits |
|
818,800 |
|
|
520 |
|
|
0.08 |
|
|
720,375 |
|
|
455 |
|
|
0.08 |
|
| Certificates and other time deposits |
|
1,299,932 |
|
|
10,131 |
|
|
1.04 |
|
|
1,157,992 |
|
|
8,346 |
|
|
0.96 |
|
| Total Interest-bearing Deposits |
|
4,662,357 |
|
|
15,971 |
|
|
0.46 |
|
|
4,109,371 |
|
|
12,028 |
|
|
0.39 |
|
| Borrowings |
|
659,260 |
|
|
10,058 |
|
|
2.03 |
|
|
506,077 |
|
|
8,180 |
|
|
2.16 |
|
| Total Interest-bearing Liabilities |
|
5,321,617 |
|
|
26,029 |
|
|
0.65 |
|
|
4,615,448 |
|
|
20,208 |
|
|
0.58 |
|
| Noninterest-bearing deposits |
|
1,445,685 |
|
|
|
|
|
|
1,279,404 |
|
|
|
|
|
| Other liabilities |
|
50,921 |
|
|
|
|
|
|
63,258 |
|
|
|
|
|
| Total Liabilities |
|
6,818,223 |
|
|
|
|
|
|
5,958,110 |
|
|
|
|
|
| Stockholders' Equity |
|
1,048,420 |
|
|
|
|
|
|
878,302 |
|
|
|
|
|
| Total Liabilities and Stockholders' Equity |
|
$ |
7,866,643 |
|
|
26,029 |
|
|
0.49 |
|
|
$ |
6,836,412 |
|
|
20,208 |
|
|
0.44 |
|
| Net Interest Income |
|
|
|
$ |
211,025 |
|
|
|
|
|
|
$ |
177,893 |
|
|
|
| Net Interest Margin |
|
|
|
|
|
3.98 |
% |
|
|
|
|
|
3.88 |
% |
| (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 2017 and 2016. These totals equal $12,506 and $9,794 for the nine
months ended September 30, 2017 and 2016, respectively. |
| |
| (3) Non accruing loans have been included in the average balances. |
First Merchants Corporation
David L. Ortega, First Vice President/Director of Investor Relations, 765-378-8937
http://www.firstmerchants.com
View source version on businesswire.com: http://www.businesswire.com/news/home/20171026005955/en/