MUNCIE, Ind.--(BUSINESS WIRE)--First Merchants Corporation (NASDAQ: FRME) has reported second quarter 2015 net income of $18 million, compared to $15.2 million during the second quarter of 2014. Earnings per share for the period totaled $.47 per share, an increase of $.06 per share or 15 percent over the same period in 2014. Year-to-date net income totaled $34.1 million, compared to $28.8 million during the same period in 2014. Earnings per share for the six months ended June 30, 2015 totaled $.90 per share, an increase of $.11 per share or 14 percent over same period in 2014.
Total assets reached $6.1 billion as of quarter-end and loans totaled $4.2 billion. The Corporation’s loan portfolio increased, by $516 million, during the past twelve months. Of the increase, $260 million or 7 percent was the result of organic growth, $145 million resulted from the acquisition of Community Bank of Noblesville in November of 2014 and $111 million resulted from the acquisition of Cooper State Bank in Columbus, Ohio in April of 2015.
Michael C. Rechin, President and Chief Executive Officer, stated, “The second quarter of 2015 was active and exciting including the full integration of Community Bank, the legal closing of Cooper State Bank, the sale of First Merchants Insurance Group and the recently announced acquisition of Ameriana Bank. Our organic or core results include $164 million of loan growth, margin expansion, and improving credit quality, which are very satisfying.” Rechin also added, “Management is very pleased with our first half 2015 activities, results and stock performance.”
Net-interest income totaled $49 million for the quarter as reported net-interest margin increased by 3 basis points over the first quarter of 2015, totaling 3.81 percent, as yields on earning assets totaled 4.26 percent and the cost of supporting liabilities totaled .45 percent. When adjusted for fair value accretion, net-interest margin totaled 3.65 for the quarter, 4 basis points more than the first quarter of 2015 total of 3.61 percent. When compared to the second quarter of 2014 reported net-interest margin and core margin declined by 8 and 6 basis points respectively.
Non-interest income totaled $24.6 million for the quarter, an $8.4 million increase from the second quarter of 2014 total of $16.2 million. The gain on the sale of our insurance subsidiary, First Merchants Insurance Group, accounted for $8.3 million of the increase. Net gains and fees related to the sale of newly originated mortgage loans also improved by $622,000 during the quarter and were offset by a $937,000 negative swing in bond sale activities for the quarter.
Non-interest expense totaled $46.4 million for the quarter, an increase of $5.2 million over the second quarter of 2014. Of the increase, $4.4 million is related to non-recurring expenses. Of the $4.4 million, $1.3 million is related to bank integration expense, $2.3 million is related to the sale of First Merchants Insurance Group and $824,000 is related to other one-time operating expenses taken in the quarter.
The Corporation’s provision expense totaled $417,000 during the quarter as net charge-off’s totaled $668,000. Non-performing loans now total $38.6 million and the allowance for loan losses totaled $62.6 million, or 1.47 percent of total loans and 1.76 percent of non-purchased loans. Non-performing assets declined by $13.4 million from the second quarter of 2014 and now total $57.8 million.
As of June 30, 2015, the Corporation’s total risk-based capital equaled 14.92 percent, common equity tier 1 risk-based capital equaled 11.22 percent, and tangible common equity ratio totaled 9.03 percent.
CONFERENCE CALL
First Merchants Corporation will conduct a second quarter earnings conference call and web cast at 2:30 p.m. (ET) on Thursday, July 23, 2015.
To participate, dial (Toll Free) 877-507-0578 and reference First Merchants Corporation's second quarter earnings release. International callers please call +1 412-317-1073. A replay of the call will be available until August 23, 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 10068128.
In order to view the web cast and presentation slides, please go to http://services.choruscall.com/links/frme150723.html during the time of the call. A replay of the web cast will be available until July 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’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) | June 30, | |||||||
| 2015 | 2014 | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 105,928 | $ | 115,891 | ||||
| Interest-bearing time deposits | 26,669 | 27,856 | ||||||
| Investment securities | 1,212,516 | 1,214,087 | ||||||
| Loans held for sale | 8,295 | 7,370 | ||||||
| Loans | 4,238,205 | 3,722,733 | ||||||
| Less: Allowance for loan losses | (62,550 | ) | (68,367 | ) | ||||
| Net loans | 4,175,655 | 3,654,366 | ||||||
| Premises and equipment | 84,841 | 74,856 | ||||||
| Federal Reserve and Federal Home Loan Bank stock | 34,630 | 43,127 | ||||||
| Interest receivable | 19,880 | 18,341 | ||||||
| Core deposit intangibles and goodwill | 220,196 | 201,583 | ||||||
| Cash surrender value of life insurance | 170,813 | 165,974 | ||||||
| Other real estate owned | 19,242 | 18,621 | ||||||
| Tax asset, deferred and receivable | 39,622 | 44,622 | ||||||
| Other assets | 22,021 | 28,426 | ||||||
| TOTAL ASSETS | $ | 6,140,308 | $ | 5,615,120 | ||||
| LIABILITIES | ||||||||
| Deposits: | ||||||||
| Noninterest-bearing | $ | 1,122,688 | $ | 917,825 | ||||
| Interest-bearing | 3,666,889 | 3,411,785 | ||||||
| Total Deposits | 4,789,577 | 4,329,610 | ||||||
| Borrowings: | ||||||||
| Federal funds purchased | 40,748 | 100,000 | ||||||
| Securities sold under repurchase agreements | 137,240 | 133,137 | ||||||
| Federal Home Loan Bank advances | 247,687 | 220,765 | ||||||
| Subordinated debentures and term loans | 126,882 | 126,874 | ||||||
| Total Borrowings | 552,557 | 580,776 | ||||||
| Interest payable | 3,211 | 2,489 | ||||||
| Other liabilities | 45,008 | 31,649 | ||||||
| Total Liabilities | 5,390,353 | 4,944,524 | ||||||
| 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 - 37,824,649 and 36,052,209 shares | 4,728 | 4,507 | ||||||
| Additional paid-in capital | 432,294 | 394,774 | ||||||
| Retained earnings | 319,298 | 266,980 | ||||||
| Accumulated other comprehensive loss | (6,490 | ) | 4,210 | |||||
| Total Stockholders' Equity | 749,955 | 670,596 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 6,140,308 | $ | 5,615,120 | ||||
| CONSOLIDATED STATEMENTS OF INCOME | Three Months Ended | Six Months Ended | |||||||||||||
| (Dollars In Thousands, Except Per Share Amounts) | June 30, | June 30, | |||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||
| INTEREST INCOME | |||||||||||||||
| Loans receivable: | |||||||||||||||
| Taxable | $ | 45,320 | $ | 42,323 | $ | 88,871 | $ | 84,348 | |||||||
| Tax-exempt | 736 | 58 | 984 | 119 | |||||||||||
| Investment securities: | |||||||||||||||
| Taxable | 4,425 | 5,046 | 9,148 | 9,856 | |||||||||||
| Tax-exempt | 4,231 | 3,570 | 8,066 | 7,008 | |||||||||||
| Deposits with financial institutions | 31 | 35 | 68 | 58 | |||||||||||
| Federal Reserve and Federal Home Loan Bank stock | 459 | 495 | 1,009 | 1,147 | |||||||||||
| Total Interest Income | 55,202 | 51,527 | 108,146 | 102,536 | |||||||||||
| INTEREST EXPENSE | |||||||||||||||
| Deposits | 3,686 | 2,874 | 7,202 | 5,423 | |||||||||||
| Federal funds purchased | 19 | 23 | 42 | 72 | |||||||||||
| Securities sold under repurchase agreements | 90 | 187 | 168 | 383 | |||||||||||
| Federal Home Loan Bank advances | 706 | 676 | 1,397 | 1,358 | |||||||||||
| Subordinated debentures and term loans | 1,670 | 1,648 | 3,330 | 3,289 | |||||||||||
| Total Interest Expense | 6,171 | 5,408 | 12,139 | 10,525 | |||||||||||
| NET INTEREST INCOME | 49,031 | 46,119 | 96,007 | 92,011 | |||||||||||
| Provision for loan losses | 417 | 417 | |||||||||||||
| NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 48,614 | 46,119 | 95,590 | 92,011 | |||||||||||
| OTHER INCOME | |||||||||||||||
| Service charges on deposit accounts | 4,090 | 4,098 | 7,638 | 7,649 | |||||||||||
| Fiduciary activities | 2,309 | 2,360 | 4,816 | 4,572 | |||||||||||
| Other customer fees | 4,602 | 4,049 | 8,269 | 7,782 | |||||||||||
| Commission income | 1,815 | 1,886 | 4,143 | 4,154 | |||||||||||
| Earnings on cash surrender value of life insurance | 640 | 653 | 1,387 | 1,401 | |||||||||||
| Net gains and fees on sales of loans | 1,781 | 1,159 | 3,270 | 1,882 | |||||||||||
| Net realized gains (losses) on sales of available for sale securities | (93 | ) | 844 | 932 | 1,425 | ||||||||||
| Gain on sale of insurance subsidiary | 8,265 | 8,265 | |||||||||||||
| Other income | 1,224 | 1,130 | 2,145 | 2,748 | |||||||||||
| Total Other Income | 24,633 | 16,179 | 40,865 | 31,613 | |||||||||||
| OTHER EXPENSES | |||||||||||||||
| Salaries and employee benefits | 26,434 | 23,430 | 50,975 | 48,731 | |||||||||||
| Net occupancy | 3,503 | 3,204 | 7,293 | 7,142 | |||||||||||
| Equipment | 2,840 | 2,096 | 5,406 | 4,835 | |||||||||||
| Marketing | 951 | 789 | 1,731 | 1,558 | |||||||||||
| Outside data processing fees | 1,768 | 2,039 | 3,485 | 3,870 | |||||||||||
| Printing and office supplies | 303 | 393 | 667 | 851 | |||||||||||
| Core deposit amortization | 729 | 592 | 1,450 | 1,184 | |||||||||||
| FDIC assessments | 895 | 863 | 1,758 | 1,923 | |||||||||||
| Other real estate owned and foreclosure expenses | 1,372 | 2,613 | 2,601 | 4,370 | |||||||||||
| Professional and other outside services | 3,134 | 1,531 | 4,625 | 2,910 | |||||||||||
| Other expenses | 4,494 | 3,700 | 7,634 | 6,965 | |||||||||||
| Total Other Expenses | 46,423 | 41,250 | 87,625 | 84,339 | |||||||||||
| INCOME BEFORE INCOME TAX | 26,824 | 21,048 | 48,830 | 39,285 | |||||||||||
| Income tax expense | 8,856 | 5,888 | 14,690 | 10,505 | |||||||||||
| NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 17,968 | $ | 15,160 | $ | 34,140 | $ | 28,780 | |||||||
| Per Share Data: | |||||||||||||||
| Basic Net Income Available to Common Stockholders | $ | 0.47 | $ | 0.42 | $ | 0.90 | $ | 0.80 | |||||||
| Diluted Net Income Available to Common Stockholders | $ | 0.47 | $ | 0.41 | $ | 0.90 | $ | 0.79 | |||||||
| Cash Dividends Paid | $ | 0.11 | $ | 0.08 | $ | 0.19 | $ | 0.13 | |||||||
| Average Diluted Shares Outstanding (in thousands) | 38,043 | 36,294 | 38,022 | 36,278 | |||||||||||
| FINANCIAL HIGHLIGHTS | ||||||||||||||||
| (Dollars in thousands) | Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| NET CHARGE OFF'S | $ | 668 | $ | 1,216 | $ | 1,831 | $ | (497 | ) | |||||||
| AVERAGE BALANCES: | ||||||||||||||||
| Total Assets | $ | 6,060,477 | $ | 5,520,483 | $ | 5,941,437 | $ | 5,460,419 | ||||||||
| Total Loans | 4,151,860 | 3,680,521 | 4,044,931 | 3,648,480 | ||||||||||||
| Total Earning Assets | 5,432,080 | 4,944,516 | 5,319,158 | 4,875,474 | ||||||||||||
| Total Deposits | 4,797,086 | 4,365,199 | 4,701,642 | 4,290,853 | ||||||||||||
| Total Stockholders' Equity | 746,181 | 662,643 | 740,378 | 653,820 | ||||||||||||
| FINANCIAL RATIOS: | ||||||||||||||||
| Return on Average Assets | 1.19 | % | 1.10 | % | 1.15 | % | 1.05 | % | ||||||||
| Return on Average Stockholders' Equity | 9.63 | 9.15 | 9.22 | 8.80 | ||||||||||||
| Return on Average Common Stockholders' Equity | 9.63 | 9.15 | 9.22 | 8.81 | ||||||||||||
| Average Earning Assets to Average Assets | 89.63 | 89.57 | 89.53 | 89.29 | ||||||||||||
| Allowance for Loan Losses as % of Total Loans | 1.47 | 1.83 | 1.47 | 1.83 | ||||||||||||
| Net Charge Off's as % of Average Loans (Annualized) | 0.06 | 0.13 | 0.09 | (0.03 | ) | |||||||||||
| Average Stockholders' Equity to Average Assets | 12.31 | 12.00 | 12.46 | 11.97 | ||||||||||||
| Tax Equivalent Yield on Earning Assets | 4.26 | 4.33 | 4.25 | 4.36 | ||||||||||||
| Cost of Supporting Liabilities | 0.45 | 0.44 | 0.46 | 0.43 | ||||||||||||
| Net Interest Margin (FTE) on Earning Assets | 3.81 | 3.89 | 3.79 | 3.93 | ||||||||||||
| Tangible Book Value Per Share | $ | 14.15 | $ | 13.14 | $ | 14.15 | $ | 13.14 | ||||||||
| NON-PERFORMING ASSETS | ||||||||||||||||||||
| (Dollars In Thousands) | June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| 2015 | 2015 | 2014 | 2014 | 2014 | ||||||||||||||||
| Non-Accrual Loans | $ | 37,713 | $ | 44,321 | $ | 48,789 | $ | 49,104 | $ | 51,289 | ||||||||||
| Renegotiated Loans | 885 | 1,326 | 1,992 | 1,171 | 1,359 | |||||||||||||||
| Non-Performing Loans (NPL) | 38,598 | 45,647 | 50,781 | 50,275 | 52,648 | |||||||||||||||
| Other Real Estate Owned | 19,242 | 19,073 | 19,293 | 14,540 | 18,621 | |||||||||||||||
| Non-Performing Assets (NPA) | 57,840 | 64,720 | 70,074 | 64,815 | 71,269 | |||||||||||||||
| 90+ Days Delinquent | 632 | 1,655 | 4,663 | 831 | 1,135 | |||||||||||||||
| NPAs & 90 Day Delinquent | $ | 58,472 | $ | 66,375 | $ | 74,737 | $ | 65,646 | $ | 72,404 | ||||||||||
| Loan Loss Reserve | $ | 62,550 | $ | 62,801 | $ | 63,964 | $ | 65,596 | $ | 68,367 | ||||||||||
| Quarterly Net Charge-off's | 668 | 1,163 | 2,592 | 4,371 | 1,216 | |||||||||||||||
| NPAs / Actual Assets % | 0.94 | % | 1.10 | % | 1.20 | % | 1.16 | % | 1.27 | % | ||||||||||
| NPAs & 90 Day / Actual Assets % | 0.95 | % | 1.13 | % | 1.28 | % | 1.17 | % | 1.29 | % | ||||||||||
| NPAs / Actual Loans and OREO % | 1.36 | % | 1.62 | % | 1.77 | % | 1.71 | % | 1.90 | % | ||||||||||
| Loan Loss Reserves / Actual Loans (%) | 1.47 | % | 1.58 | % | 1.63 | % | 1.74 | % | 1.83 | % | ||||||||||
| Net Charge Off's as % of Average Loans (Annualized) | 0.06 | % | 0.12 | % | 0.27 | % | 0.47 | % | 0.13 | % | ||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||||
| (Dollars In Thousands) | June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| 2015 | 2015 | 2014 | 2014 | 2014 | ||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and cash equivalents | $ | 105,928 | $ | 89,243 | $ | 118,616 | $ | 74,237 | $ | 115,891 | ||||||||||
| Interest-bearing time deposits | 26,669 | 83,228 | 47,520 | 24,171 | 27,856 | |||||||||||||||
| Investment securities | 1,212,516 | 1,189,473 | 1,180,631 | 1,189,814 | 1,214,087 | |||||||||||||||
| Loans held for sale | 8,295 | 6,392 | 7,235 | 6,423 | 7,370 | |||||||||||||||
| Loans | 4,238,205 | 3,965,532 | 3,924,865 | 3,772,467 | 3,722,733 | |||||||||||||||
| Less: Allowance for loan losses | (62,550 | ) | (62,801 | ) | (63,964 | ) | (65,596 | ) | (68,367 | ) | ||||||||||
| Net loans | 4,175,655 | 3,902,731 | 3,860,901 | 3,706,871 | 3,654,366 | |||||||||||||||
| Premises and equipment | 84,841 | 77,468 | 77,691 | 74,105 | 74,856 | |||||||||||||||
| Federal Reserve and Federal Home Loan Bank stock | 34,630 | 41,273 | 41,353 | 43,127 | 43,127 | |||||||||||||||
| Interest receivable | 19,880 | 19,557 | 19,984 | 19,455 | 18,341 | |||||||||||||||
| Core deposit intangibles and goodwill | 220,196 | 218,034 | 218,755 | 200,991 | 201,583 | |||||||||||||||
| Cash surrender value of life insurance | 170,813 | 170,172 | 169,424 | 165,423 | 165,974 | |||||||||||||||
| Other real estate owned | 19,242 | 19,073 | 19,293 | 14,540 | 18,621 | |||||||||||||||
| Tax asset, deferred and receivable | 39,622 | 38,695 | 41,960 | 41,131 | 44,622 | |||||||||||||||
| Other assets | 22,021 | 22,182 | 20,764 | 31,095 | 28,426 | |||||||||||||||
| TOTAL ASSETS | $ | 6,140,308 | $ | 5,877,521 | $ | 5,824,127 | $ | 5,591,383 | $ | 5,615,120 | ||||||||||
| LIABILITIES | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Noninterest-bearing | 1,122,688 | 1,100,397 | 1,070,859 | 939,540 | 917,825 | |||||||||||||||
| Interest-bearing | 3,666,889 | 3,547,678 | 3,569,835 | 3,370,583 | 3,411,785 | |||||||||||||||
| Total Deposits | 4,789,577 | 4,648,075 | 4,640,694 | 4,310,123 | 4,329,610 | |||||||||||||||
| Borrowings: | ||||||||||||||||||||
| Federal funds purchased | 40,748 | 15,381 | 61,428 | 100,000 | ||||||||||||||||
| Securities sold under repurchase agreements | 137,240 | 134,023 | 124,539 | 117,892 | 133,137 | |||||||||||||||
| Federal Home Loan Bank advances | 247,687 | 166,326 | 145,264 | 255,423 | 220,765 | |||||||||||||||
| Subordinated debentures and term loans | 126,882 | 126,875 | 126,810 | 126,874 | 126,874 | |||||||||||||||
| Total Borrowings | 552,557 | 427,224 | 411,994 | 561,617 | 580,776 | |||||||||||||||
| Interest payable | 3,211 | 3,685 | 3,201 | 3,819 | 2,489 | |||||||||||||||
| Other liabilities | 45,008 | 58,879 | 41,411 | 31,271 | 31,649 | |||||||||||||||
| Total Liabilities | 5,390,353 | 5,137,863 | 5,097,300 | 4,906,830 | 4,944,524 | |||||||||||||||
| 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 | 4,728 | 4,723 | 4,709 | 4,509 | 4,507 | |||||||||||||||
| Additional paid-in capital | 432,294 | 431,199 | 431,220 | 395,582 | 394,774 | |||||||||||||||
| Retained earnings | 319,298 | 305,526 | 292,403 | 280,187 | 266,980 | |||||||||||||||
| Accumulated other comprehensive income (loss) | (6,490 | ) | (1,915 | ) | (1,630 | ) | 4,150 | 4,210 | ||||||||||||
| Total Stockholders' Equity | 749,955 | 739,658 | 726,827 | 684,553 | 670,596 | |||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 6,140,308 | $ | 5,877,521 | $ | 5,824,127 | $ | 5,591,383 | $ | 5,615,120 | ||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||
| (Dollars In Thousands, Except Per Share Amounts) | June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| 2015 | 2015 | 2014 | 2014 | 2014 | ||||||||||||||||
| INTEREST INCOME | ||||||||||||||||||||
| Loans receivable: | ||||||||||||||||||||
| Taxable | $ | 45,320 | $ | 43,551 | $ | 43,710 | $ | 43,981 | $ | 42,323 | ||||||||||
| Tax-exempt | 736 | 248 | 147 | 61 | 58 | |||||||||||||||
| Investment securities: | ||||||||||||||||||||
| Taxable | 4,425 | 4,723 | 4,980 | 5,046 | 5,046 | |||||||||||||||
| Tax-exempt | 4,231 | 3,835 | 3,692 | 3,683 | 3,570 | |||||||||||||||
| Deposits with financial institutions | 31 | 37 | 48 | 18 | 35 | |||||||||||||||
| Federal Reserve and Federal Home Loan Bank stock | 459 | 550 | 476 | 501 | 495 | |||||||||||||||
| Total Interest Income | 55,202 | 52,944 | 53,053 | 53,290 | 51,527 | |||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||
| Deposits | 3,686 | 3,516 | 3,402 | 2,853 | 2,874 | |||||||||||||||
| Federal funds purchased | 19 | 23 | 3 | 102 | 23 | |||||||||||||||
| Securities sold under repurchase agreements | 90 | 78 | 72 | 74 | 187 | |||||||||||||||
| Federal Home Loan Bank advances | 706 | 691 | 750 | 734 | 676 | |||||||||||||||
| Subordinated debentures and term loans | 1,670 | 1,660 | 1,666 | 1,661 | 1,648 | |||||||||||||||
| Total Interest Expense | 6,171 | 5,968 | 5,893 | 5,424 | 5,408 | |||||||||||||||
| NET INTEREST INCOME | 49,031 | 46,976 | 47,160 | 47,866 | 46,119 | |||||||||||||||
| Provision for loan losses | 417 | 960 | 1,600 | |||||||||||||||||
| NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 48,614 | 46,976 | 46,200 | 46,266 | 46,119 | |||||||||||||||
| OTHER INCOME | ||||||||||||||||||||
| Service charges on deposit accounts | 4,090 | 3,548 | 3,979 | 4,119 | 4,098 | |||||||||||||||
| Fiduciary activities | 2,309 | 2,507 | 2,242 | 2,152 | 2,360 | |||||||||||||||
| Other customer fees | 4,602 | 3,667 | 3,926 | 3,991 | 4,049 | |||||||||||||||
| Commission income | 1,815 | 2,328 | 1,534 | 1,723 | 1,886 | |||||||||||||||
| Earnings on cash surrender value of life insurance | 640 | 747 | 734 | 1,524 | 653 | |||||||||||||||
| Net gains and fees on sales of loans | 1,781 | 1,489 | 1,559 | 1,458 | 1,159 | |||||||||||||||
| Net realized gains (losses) on sales of available for sale securities | (93 | ) | 1,025 | 1,246 | 910 | 844 | ||||||||||||||
| Gain on sale of insurance subsidiary | 8,265 | |||||||||||||||||||
| Other income | 1,224 | 921 | 1,155 | 2,535 | 1,130 | |||||||||||||||
| Total Other Income | 24,633 | 16,232 | 16,375 | 18,412 | 16,179 | |||||||||||||||
| OTHER EXPENSES | ||||||||||||||||||||
| Salaries and employee benefits | 26,434 | 24,541 | 23,595 | 24,173 | 23,430 | |||||||||||||||
| Net occupancy | 3,503 | 3,790 | 3,288 | 3,401 | 3,204 | |||||||||||||||
| Equipment | 2,840 | 2,566 | 2,315 | 2,187 | 2,096 | |||||||||||||||
| Marketing | 951 | 780 | 836 | 1,070 | 789 | |||||||||||||||
| Outside data processing fees | 1,768 | 1,717 | 1,592 | 1,853 | 2,039 | |||||||||||||||
| Printing and office supplies | 303 | 364 | 364 | 350 | 393 | |||||||||||||||
| Core deposit amortization | 729 | 721 | 669 | 592 | 592 | |||||||||||||||
| FDIC assessments | 895 | 863 | 895 | 920 | 863 | |||||||||||||||
| Other real estate owned and foreclosure expenses | 1,372 | 1,229 | 1,055 | 2,618 | 2,613 | |||||||||||||||
| Professional and other outside services | 3,134 | 1,491 | 3,633 | 1,573 | 1,531 | |||||||||||||||
| Other expenses | 4,494 | 3,140 | 3,435 | 3,839 | 3,700 | |||||||||||||||
| Total Other Expenses | 46,423 | 41,202 | 41,677 | 42,576 | 41,250 | |||||||||||||||
| INCOME BEFORE INCOME TAX | 26,824 | 22,006 | 20,898 | 22,102 | 21,048 | |||||||||||||||
| Income tax expense | 8,856 | 5,834 | 5,638 | 5,980 | 5,888 | |||||||||||||||
| NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 17,968 | $ | 16,172 | $ | 15,260 | $ | 16,122 | $ | 15,160 | ||||||||||
| Per Share Data: | ||||||||||||||||||||
| Basic Net Income Available to Common Stockholders | $ | 0.47 | $ | 0.43 | $ | 0.41 | $ | 0.45 | $ | 0.42 | ||||||||||
| Diluted Net Income Available to Common Stockholders | $ | 0.47 | $ | 0.43 | $ | 0.41 | $ | 0.45 | $ | 0.41 | ||||||||||
| Cash Dividends Paid | $ | 0.11 | $ | 0.08 | $ | 0.08 | $ | 0.08 | $ | 0.08 | ||||||||||
| Average Diluted Shares Outstanding (in thousands) | 38,043 | 38,000 | 37,323 | 36,329 | 36,294 | |||||||||||||||
| FINANCIAL RATIOS: | ||||||||||||||||||||
| Return on Average Assets | 1.19 | % | 1.11 | % | 1.06 | % | 1.16 | % | 1.10 | % | ||||||||||
| Return on Average Stockholders' Equity | 9.63 | 8.81 | 8.55 | 9.49 | 9.15 | |||||||||||||||
| Return on Average Common Stockholders' Equity | 9.63 | 8.81 | 8.56 | 9.50 | 9.15 | |||||||||||||||
| Average Earning Assets to Average Assets | 89.63 | 89.42 | 89.51 | 89.82 | 89.57 | |||||||||||||||
| Allowance for Loan Losses as % of Total Loans | 1.47 | 1.58 | 1.63 | 1.74 | 1.83 | |||||||||||||||
| Net Charge Off's as % of Average Loans (Annualized) | 0.06 | 0.12 | 0.27 | 0.47 | 0.13 | |||||||||||||||
| Average Stockholders' Equity to Average Assets | 12.31 | 12.62 | 12.34 | 12.18 | 12.00 | |||||||||||||||
| Tax Equivalent Yield on Earning Assets | 4.26 | 4.24 | 4.26 | 4.41 | 4.33 | |||||||||||||||
| Cost of Supporting Liabilities | 0.45 | 0.46 | 0.46 | 0.43 | 0.44 | |||||||||||||||
| Net Interest Margin (FTE) on Earning Assets | 3.81 | 3.78 | 3.80 | 3.98 | 3.89 | |||||||||||||||
| Tangible Book Value Per Share | $ | 14.15 | $ | 13.96 | $ | 13.65 | $ | 13.53 | $ | 13.14 | ||||||||||
| LOANS | ||||||||||||||||||||
| (Dollars In Thousands) | June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| 2015 | 2015 | 2014 | 2014 | 2014 | ||||||||||||||||
| Commercial and industrial loans | $ | 984,223 | $ | 938,937 | $ | 896,688 | $ | 900,970 | $ | 857,844 | ||||||||||
| Agricultural production financing and other loans to farmers | 93,695 | 95,652 | 104,927 | 99,649 | 102,270 | |||||||||||||||
| Real estate loans: | ||||||||||||||||||||
| Construction | 256,082 | 237,036 | 207,221 | 178,213 | 165,388 | |||||||||||||||
| Commercial and farmland | 1,705,647 | 1,646,418 | 1,672,661 | 1,603,698 | 1,621,436 | |||||||||||||||
| Residential | 689,621 | 640,451 | 647,315 | 625,609 | 629,162 | |||||||||||||||
| Home Equity | 302,403 | 286,914 | 286,529 | 269,952 | 261,811 | |||||||||||||||
| Individuals' loans for household and other personal expenditures | 62,785 | 70,223 | 73,400 | 66,832 | 61,533 | |||||||||||||||
| Lease financing receivables, net of unearned income | 742 | 853 | 1,106 | 1,208 | 1,231 | |||||||||||||||
| Other commercial loans | 143,007 | 49,048 | 35,018 | 26,336 | 22,058 | |||||||||||||||
| Loans | 4,238,205 | 3,965,532 | 3,924,865 | 3,772,467 | 3,722,733 | |||||||||||||||
| Allowance for loan losses | (62,550 | ) | (62,801 | ) | (63,964 | ) | (65,596 | ) | (68,367 | ) | ||||||||||
| NET LOANS | $ | 4,175,655 | $ | 3,902,731 | $ | 3,860,901 | $ | 3,706,871 | $ | 3,654,366 | ||||||||||
| DEPOSITS | ||||||||||||||||||||
| (Dollars In Thousands) | June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| 2015 | 2015 | 2014 | 2014 | 2014 | ||||||||||||||||
| Demand deposits | $ | 2,211,154 | $ | 2,116,135 | $ | 2,146,492 | $ | 1,947,040 | $ | 2,041,183 | ||||||||||
| Savings deposits | 1,439,255 | 1,402,421 | 1,376,707 | 1,281,994 | 1,251,277 | |||||||||||||||
| Certificates and other time deposits of $100,000 or more | 295,159 | 283,313 | 260,685 | 241,163 | 251,585 | |||||||||||||||
| Other certificates and time deposits | 517,153 | 516,500 | 523,010 | 502,965 | 534,344 | |||||||||||||||
| Brokered deposits | 326,856 | 329,706 | 333,800 | 336,961 | 251,221 | |||||||||||||||
| TOTAL DEPOSITS | $ | 4,789,577 | $ | 4,648,075 | $ | 4,640,694 | $ | 4,310,123 | $ | 4,329,610 | ||||||||||
| NET INTEREST INCOME | ||||||||||||||||||||||
| (Dollars in Thousands) | For the Three Months Ended | |||||||||||||||||||||
| June 30, 2015 | June 30, 2014 | |||||||||||||||||||||
|
Average |
Interest |
Average |
Average |
Interest |
Average |
|||||||||||||||||
| Assets: | ||||||||||||||||||||||
| Interest-bearing time deposits | $ | 59,979 | $ | 31 | 0.21 | % | $ | 59,030 | $ | 35 | 0.24 | % | ||||||||||
| Federal Reserve and Federal Home Loan Bank stock | 39,195 | 459 | 4.68 | 42,809 | 495 | 4.63 | ||||||||||||||||
| Investment Securities: (1) | ||||||||||||||||||||||
| Taxable | 696,505 | 4,425 | 2.54 | 772,384 | 5,046 | 2.61 | ||||||||||||||||
| Tax-Exempt (2) | 484,541 | 6,510 | 5.37 | 389,772 | 5,492 | 5.64 | ||||||||||||||||
| Total Investment Securities | 1,181,046 | 10,935 | 3.70 | 1,162,156 | 10,538 | 3.63 | ||||||||||||||||
| Loans held for sale | 6,033 | 146 | 9.68 | 5,775 | 108 | 7.48 | ||||||||||||||||
| Loans: (3) | ||||||||||||||||||||||
| Commercial | 3,193,314 | 35,661 | 4.47 | 2,850,068 | 31,730 | 4.45 | ||||||||||||||||
| Real Estate Mortgage | 455,470 | 4,962 | 4.36 | 450,462 | 5,636 | 5.00 | ||||||||||||||||
| Installment | 396,378 | 4,552 | 4.59 | 362,455 | 4,849 | 5.35 | ||||||||||||||||
| Tax-Exempt (2) | 100,665 | 1,131 | 4.49 | 11,761 | 89 | 3.03 | ||||||||||||||||
| Total Loans | 4,151,860 | 46,452 | 4.48 | 3,680,521 | 42,412 | 4.61 | ||||||||||||||||
| Total Earning Assets | 5,432,080 | 57,877 | 4.26 | 4,944,516 | 53,480 | 4.33 | ||||||||||||||||
| Net unrealized gain on securities available for sale | 12,575 | 8,820 | ||||||||||||||||||||
| Allowance for loan losses | (62,881 | ) | (69,188 | ) | ||||||||||||||||||
| Cash and cash equivalents | 97,738 | 79,974 | ||||||||||||||||||||
| Premises and equipment | 84,359 | 74,869 | ||||||||||||||||||||
| Other assets | 496,606 | 481,492 | ||||||||||||||||||||
| Total Assets | $ | 6,060,477 | $ | 5,520,483 | ||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||
| Interest-bearing NOW deposits | $ | 1,088,896 | $ | 283 | 0.10 | % | $ | 1,081,709 | $ | 282 | 0.10 | % | ||||||||||
| Money market deposits | 853,776 | 446 | 0.21 | 776,396 | 397 | 0.20 | ||||||||||||||||
| Savings deposits | 612,920 | 166 | 0.11 | 528,261 | 153 | 0.12 | ||||||||||||||||
| Certificates and other time deposits | 1,148,463 | 2,791 | 0.97 | 1,051,596 | 2,042 | 0.78 | ||||||||||||||||
| Total Interest-bearing Deposits | 3,704,055 | 3,686 | 0.40 | 3,437,962 | 2,874 | 0.33 | ||||||||||||||||
| Borrowings | 471,467 | 2,485 | 2.11 | 459,602 | 2,534 | 2.21 | ||||||||||||||||
| Total Interest-bearing Liabilities | 4,175,522 | 6,171 | 0.59 | 3,897,564 | 5,408 | 0.56 | ||||||||||||||||
| Noninterest-bearing deposits | 1,093,031 | 927,237 | ||||||||||||||||||||
| Other liabilities | 45,743 | 33,039 | ||||||||||||||||||||
| Total Liabilities | 5,314,296 | 4,857,840 | ||||||||||||||||||||
| Stockholders' Equity | 746,181 | 662,643 | ||||||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 6,060,477 | 6,171 | 0.45 | $ | 5,520,483 | 5,408 | 0.44 | ||||||||||||||
| Net Interest Income | $ | 51,706 | $ | 48,072 | ||||||||||||||||||
| Net Interest Margin | 3.81 | % | 3.89 | % | ||||||||||||||||||
(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 $2,675 and $1,953 for the three months ended June 30, 2015 and 2014, respectively.
(3) Non accruing loans have been included in the average balances.
| NET INTEREST INCOME | ||||||||||||||||||||||
| (Dollars in Thousands) | For the Six Months Ended | |||||||||||||||||||||
| June 30, 2015 | June 30, 2014 | |||||||||||||||||||||
|
Average |
Interest |
Average |
Average |
Interest |
Average |
|||||||||||||||||
| Assets: | ||||||||||||||||||||||
| Interest-bearing time deposits | $ | 58,452 | $ | 68 | 0.23 | % | $ | 51,713 | $ | 58 | 0.22 | % | ||||||||||
| Federal Reserve and Federal Home Loan Bank stock | 40,267 | 1,009 | 5.01 | 40,910 | 1,147 | 5.61 | ||||||||||||||||
| Investment Securities: (1) | ||||||||||||||||||||||
| Taxable | 716,331 | 9,148 | 2.55 | 754,631 | 9,856 | 2.61 | ||||||||||||||||
| Tax-Exempt (2) | 459,177 | 12,409 | 5.40 | 379,740 | 10,782 | 5.68 | ||||||||||||||||
| Total Investment Securities | 1,175,508 | 21,557 | 3.67 | 1,134,371 | 20,638 | 3.64 | ||||||||||||||||
| Loans held for sale | 5,483 | 256 | 9.34 | 5,419 | 180 | 6.64 | ||||||||||||||||
| Loans: (3) | ||||||||||||||||||||||
| Commercial | 3,117,698 | 69,830 | 4.48 | 2,887,823 | 65,341 | 4.53 | ||||||||||||||||
| Real Estate Mortgage | 457,620 | 9,811 | 4.29 | 398,677 | 9,625 | 4.83 | ||||||||||||||||
| Installment | 395,227 | 8,975 | 4.54 | 344,506 | 9,202 | 5.34 | ||||||||||||||||
| Tax-Exempt (2) | 68,903 | 1,513 | 4.39 | 12,055 | 183 | 3.04 | ||||||||||||||||
| Total Loans | 4,044,931 | 90,385 | 4.47 | 3,648,480 | 84,531 | 4.63 | ||||||||||||||||
| Total Earning Assets | 5,319,158 | 113,019 | 4.25 | % | 4,875,474 | 106,374 | 4.36 | % | ||||||||||||||
| Net unrealized gain on securities available for sale | 13,522 | 6,242 | ||||||||||||||||||||
| Allowance for loan losses | (63,154 | ) | (68,998 | ) | ||||||||||||||||||
| Cash and cash equivalents | 98,262 | 87,572 | ||||||||||||||||||||
| Premises and equipment | 81,052 | 74,751 | ||||||||||||||||||||
| Other assets | 492,597 | 485,378 | ||||||||||||||||||||
| Total Assets | $ | 5,941,437 | $ | 5,460,419 | ||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||
| Interest-bearing NOW deposits | $ | 1,059,826 | $ | 534 | 0.10 | % | $ | 1,063,084 | $ | 549 | 0.10 | % | ||||||||||
| Money market deposits | 838,852 | 858 | 0.20 | 764,632 | 764 | 0.20 | ||||||||||||||||
| Savings deposits | 592,449 | 326 | 0.11 | 526,333 | 306 | 0.12 | ||||||||||||||||
| Certificates and other time deposits | 1,137,342 | 5,484 | 0.96 | 1,015,335 | 3,804 | 0.75 | ||||||||||||||||
| Total Interest-bearing Deposits | 3,628,469 | 7,202 | 0.40 | 3,369,384 | 5,423 | 0.32 | ||||||||||||||||
| Borrowings | 454,758 | 4,937 | 2.17 | 476,496 | 5,102 | 2.14 | ||||||||||||||||
| Total Interest-bearing Liabilities | 4,083,227 | 12,139 | 0.59 | 3,845,880 | 10,525 | 0.55 | ||||||||||||||||
| Noninterest-bearing deposits | 1,073,173 | 921,469 | ||||||||||||||||||||
| Other liabilities | 44,659 | 39,250 | ||||||||||||||||||||
| Total Liabilities | 5,201,059 | 4,806,599 | ||||||||||||||||||||
| Stockholders' Equity | 740,378 | 653,820 | ||||||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 5,941,437 | 12,139 | 0.46 | $ | 5,460,419 | 10,525 | 0.43 | ||||||||||||||
| Net Interest Income | $ | 100,880 | $ | 95,849 | ||||||||||||||||||
| Net Interest Margin | 3.79 | % | 3.93 | % | ||||||||||||||||||
(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 $4,873 and $3,838 for the six months ended June 30, 2015 and 2014, respectively.
(3) Non accruing loans have been included in the average balances.
