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Press Release

First Merchants Corporation Announces 5.4 Percent Increase in First Quarter 2019 Earnings Per Share

Company Release - 4/25/2019 8:00 AM ET

MUNCIE, Ind., April 25, 2019 (GLOBE NEWSWIRE) -- First Merchants Corporation (NASDAQ - FRME) has reported first quarter 2019 net income of $38.8 million, an increase of 5.8 percent, compared to $36.7 million during the same period in 2018.  Earnings per share for the period totaled $.78 per share, an increase of 5.4 percent, compared to the first quarter of 2018 result of $.74 per share.

Total assets equaled $10.2 billion as of quarter-end and loans totaled $7.3 billion.  The Corporation’s loan portfolio increased by $397 million, or 5.7 percent, during the past twelve months.  Investments increased $319 million, or 20.7 percent, during the same period and now total $1.9 billion.  Total deposits equaled $8.0 billion as of quarter-end and increased by $720 million, or 9.8 percent, while borrowings, totaling $615 million, declined during the period by $161 million, or 20.8 percent.  As a result, the loan-to-deposit ratio now totals 90.7 percent and loan-to-asset ratio totals 71.5 percent.  Additionally, the Corporation’s total risk-based capital ratio equaled 14.71 percent, common equity tier 1 capital ratio equaled 12.12 percent, and the tangible common equity ratio totaled 10.14 percent.

Michael C. Rechin, President and Chief Executive Officer, stated, “We are excited to begin 2019 with a solid quarter of operating results.  Our focus on the marketplace produced strong deposit growth and liquidity for our balance sheet.  The loan pipeline continues to reflect an expanding Midwest economy with healthy asset quality throughout the portfolio.  Our primary financial ratios and related key performance indicators continue to reflect the results of a high performing company.”

Rechin continued, “We now have shareholder, Indiana Department of Financial Institutions and the Federal Deposit Insurance Corporation approvals in hand regarding our merger with Monroe Bank & Trust. We continue to anticipate our holding company’s approval from the Federal Reserve Bank and a legal closing in the current quarter.  Our integration activities and re-branding efforts are planned for the third quarter.”

Net-interest income totaled $84.9 million for the quarter, an increase of $5 million, or 6.3 percent, over the same period in 2018.  Net-interest margin, totaling 3.84 percent, declined by 8 basis points.  Yields on earning assets increased by 32 basis points and totaled 4.89 percent, while the cost of supporting liabilities increased by 40 basis points and totaled 1.05 percent.  Fair value accretion negatively impacted yields as it declined from 15 basis points in first quarter of 2018 to 9 basis points in 2019.

Non-interest income totaled $18.7 million for the quarter, an $848,000 decrease from the first quarter of 2018. Gains from the sale of loans accounted for $526,000 of the decline, as approximately one-half of the quarter’s production was added to the balance sheet versus being sold into the secondary market.  Non-interest expense totaled $56.6 million, up from the 2018 total of $53.7 million.  Of the $2.9 million increase, salary and benefits accounted for $802,000, other real estate and foreclosure expense accounted for $763,000 and outside data processing accounted for $720,000.

The Corporation’s provision expense totaled $1.2 million due to loan growth, while net charge offs totaled $850,000.  The allowance for loan losses totaled $80.9 million as of March 31, 2019, up from $76.4 million as of March 31, 2018.  Non-accrual loans totaled $27.9 million as of quarter-end and the allowance is 1.11 percent of total loans and 1.24 percent of non-purchased loans.

CONFERENCE CALL

First Merchants Corporation will conduct a first quarter earnings conference call and web cast at 2:30 p.m. (ET) on Thursday, April 25, 2019.

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 25, 2019. To access a replay of the call, US participants should dial (Toll Free) 877-344-7529, Canada participants should dial 855-669-9658, or for International participants, dial +1 412-317-0088. The replay access code is 10127190.

In order to view the web cast and presentation slides, please go to http://services.choruscall.com/links/frme190425.html during the time of the call.  A replay of the web cast will be available until April 25, 2020.

Detailed financial results are reported on the attached pages.

About First Merchants Corporation

First Merchants Corporation is a financial holding company headquartered in Muncie, Indiana. The Corporation has one full-service bank charter, First Merchants Bank.  The Bank also operates as First Merchants Private Wealth Advisors (as a division of First Merchants Bank).

First Merchants Corporation’s common stock is traded on the NASDAQ Global Select Market System under the symbol FRME. Quotations are carried in daily newspapers and can be found on the company’s Internet web page (http://www.firstmerchants.com).

FIRST MERCHANTS and the Shield Logo are federally registered trademarks of First Merchants Corporation.

Forward-Looking Statements

This 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)March 31,
 2019 2018
ASSETS   
Cash and cash equivalents$115,878  $128,828 
Interest-bearing time deposits70,672  24,233 
Investment securities1,862,659  1,543,820 
Loans held for sale3,330  4,469 
Loans7,299,320  6,901,696 
Less: Allowance for loan losses(80,902) (76,420)
Net loans7,218,418  6,825,276 
Premises and equipment91,863  94,741 
Federal Home Loan Bank stock24,588  24,588 
Interest receivable40,931  35,223 
Goodwill and other intangibles468,256  474,777 
Cash surrender value of life insurance225,928  221,949 
Other real estate owned1,877  9,698 
Tax asset, deferred and receivable16,094  24,177 
Other assets70,431  61,017 
TOTAL ASSETS$10,210,925  $9,472,796 
LIABILITIES   
Deposits:   
Noninterest-bearing$1,381,183  $1,698,958 
Interest-bearing6,666,615  5,628,677 
Total Deposits8,047,798  7,327,635 
Borrowings:   
Federal funds purchased20,000  50,000 
Securities sold under repurchase agreements111,783  138,910 
Federal Home Loan Bank advances345,013  449,419 
Subordinated debentures and term loans138,519  138,297 
Total Borrowings615,315  776,626 
Interest payable7,313  5,376 
Other liabilities84,651  50,086 
Total Liabilities8,755,077  8,159,723 
STOCKHOLDERS' EQUITY   
Cumulative Preferred Stock, $1,000 par value, $1,000 liquidation value:   
Authorized -- 600 shares   
Issued and outstanding - 125 shares125  125 
Common Stock, $.125 stated value:   
Authorized -- 100,000,000 shares   
Issued and outstanding - 49,428,468 and 49,243,096 shares6,179  6,155 
Additional paid-in capital839,919  834,894 
Retained earnings611,220  493,624 
Accumulated other comprehensive loss(1,595) (21,725)
Total Stockholders' Equity1,455,848  1,313,073 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$10,210,925  $9,472,796 
        


CONSOLIDATED STATEMENTS OF INCOMEThree Months Ended
(Dollars In Thousands, Except Per Share Amounts)March 31,
 2019 2018
INTEREST INCOME   
Loans receivable:   
Taxable$90,481  $78,267 
Tax-exempt4,153  3,596 
Investment securities:   
Taxable6,095  5,096 
Tax-exempt6,871  6,126 
Deposits with financial institutions875  131 
Federal Home Loan Bank stock338  404 
Total Interest Income108,813  93,620 
INTEREST EXPENSE   
Deposits19,594  9,002 
Federal funds purchased93  380 
Securities sold under repurchase agreements330  173 
Federal Home Loan Bank advances1,814  2,159 
Subordinated debentures and term loans2,116  1,990 
Total Interest Expense23,947  13,704 
NET INTEREST INCOME84,866  79,916 
Provision for loan losses1,200  2,500 
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES83,666  77,416 
OTHER INCOME   
Service charges on deposit accounts5,095  4,777 
Fiduciary and wealth management fees3,818  3,796 
Card payment fees4,826  4,594 
Net gains and fees on sales of loans1,295  1,821 
Derivative hedge fees781  842 
Other customer fees439  442 
Earnings on cash surrender value of life insurance989  1,176 
Net realized gains on sales of available for sale securities1,140  1,609 
Other income330  504 
Total Other Income18,713  19,561 
OTHER EXPENSES   
Salaries and employee benefits33,028  32,226 
Net occupancy5,027  4,670 
Equipment3,642  3,668 
Marketing1,074  884 
Outside data processing fees3,684  2,964 
Printing and office supplies315  334 
Intangible asset amortization1,528  1,726 
FDIC assessments707  719 
Other real estate owned and foreclosure expenses1,165  402 
Professional and other outside services1,884  1,541 
Other expenses4,567  4,553 
Total Other Expenses56,621  53,687 
INCOME BEFORE INCOME TAX45,758  43,290 
Income tax expense6,941  6,611 
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$38,817  $36,679 
    
Per Share Data:   
Basic Net Income Available to Common Stockholders$0.79  $0.75 
Diluted Net Income Available to Common Stockholders$0.78  $0.74 
Cash Dividends Paid$0.22  $0.18 
Average Diluted Shares Outstanding (in thousands)49,541  49,428 
      


FINANCIAL HIGHLIGHTS   
(Dollars in thousands)Three Months Ended
 March 31,
 2019 2018
NET CHARGE-OFFS$850  $1,112 
    
AVERAGE BALANCES:   
Total Assets$10,080,142  $9,372,736 
Total Loans7,230,119  6,811,087 
Total Earning Assets9,132,129  8,415,177 
Total Deposits7,936,656  7,153,164 
Total Stockholders' Equity1,429,739  1,308,804 
    
FINANCIAL RATIOS:   
Return on Average Assets1.54% 1.57%
Return on Average Stockholders' Equity10.86  11.21 
Return on Average Common Stockholders' Equity10.86  11.21 
Average Earning Assets to Average Assets90.60  89.78 
Allowance for Loan Losses as % of Total Loans1.11  1.11 
Net Charge-offs as % of Average Loans (Annualized)0.05  0.07 
Average Stockholders' Equity to Average Assets14.18  13.96 
Tax Equivalent Yield on Average Earning Assets4.89  4.57 
Interest Expense/Average Earning Assets1.05  0.65 
Net Interest Margin (FTE) on Average Earning Assets3.84  3.92 
Efficiency Ratio51.18  51.33 
Tangible Common Book Value Per Share$20.07  $17.14 
        


NON-PERFORMING ASSETS         
(Dollars In Thousands)March 31, December 31, September 30, June 30, March 31,
 2019 2018 2018 2018 2018
Non-Accrual Loans$27,949  $26,148  $20,421  $20,143  $27,497 
Renegotiated Loans709  1,103  968  544  579 
Non-Performing Loans (NPL)28,658  27,251  21,389  20,687  28,076 
Other Real Estate Owned1,877  2,179  8,859  9,071  9,698 
Non-Performing Assets (NPA)30,535  29,430  30,248  29,758  37,774 
90+ Days Delinquent134  1,855  50  184  738 
NPAs & 90 Day Delinquent$30,669  $31,285  $30,298  $29,942  $38,512 
          
Allowance for Loan Losses$80,902  $80,552  $78,406  $77,543  $76,420 
Quarterly Net Charge-offs850  (482) 537  540  1,112 
NPAs / Actual Assets %0.30% 0.30% 0.31% 0.31% 0.40%
NPAs & 90 Day / Actual Assets %0.30% 0.32% 0.31% 0.31% 0.41%
NPAs / Actual Loans and OREO %0.42% 0.41% 0.43% 0.42% 0.55%
Allowance for Loan Losses / Actual Loans (%)1.11% 1.11% 1.11% 1.09% 1.11%
Net Charge-offs as % of Average Loans (Annualized)0.05% (0.03)% 0.03% 0.03% 0.07%
               


CONSOLIDATED BALANCE SHEETS         
(Dollars In Thousands)March 31, December 31, September 30, June 30, March 31,
 2019 2018 2018 2018 2018
ASSETS         
Cash and cash equivalents$115,878  $139,247  $142,501  $133,893  $128,828 
Interest-bearing time deposits70,672  36,963  66,763  36,599  24,233 
Investment securities1,862,659  1,632,582  1,625,251  1,619,683  1,543,820 
Loans held for sale3,330  4,778  3,022  2,046  4,469 
Loans7,299,320  7,224,467  7,088,071  7,081,059  6,901,696 
Less: Allowance for loan losses(80,902) (80,552) (78,406) (77,543) (76,420)
Net loans7,218,418  7,143,915  7,009,665  7,003,516  6,825,276 
Premises and equipment91,863  93,420  93,728  94,397  94,741 
Federal Home Loan Bank stock24,588  24,588  24,588  24,588  24,588 
Interest receivable40,931  40,881  38,531  38,530  35,223 
Goodwill and other intangibles468,256  469,784  471,409  473,059  474,777 
Cash surrender value of life insurance225,928  224,939  223,865  222,905  221,949 
Other real estate owned1,877  2,179  8,859  9,071  9,698 
Tax asset, deferred and receivable16,094  23,668  25,933  24,619  24,177 
Other assets70,431  47,772  53,167  51,809  61,017 
TOTAL ASSETS$10,210,925  $9,884,716  $9,787,282  $9,734,715  $9,472,796 
LIABILITIES         
Deposits:         
Noninterest-bearing$1,381,183  $1,447,907  $1,464,190  $1,571,194  $1,698,958 
Interest-bearing6,666,615  6,306,686  6,168,962  5,932,621  5,628,677 
Total Deposits8,047,798  7,754,593  7,633,152  7,503,815  7,327,635 
Borrowings:         
Federal funds purchased20,000  104,000  90,000  109,000  50,000 
Securities sold under repurchase agreements111,783  113,512  118,824  122,513  138,910 
Federal Home Loan Bank advances345,013  314,986  385,458  469,261  449,419 
Subordinated debentures and term loans138,519  138,463  138,408  138,352  138,297 
Total Borrowings615,315  670,961  732,690  839,126  776,626 
Interest payable7,313  5,607  5,920  4,807  5,376 
Other liabilities84,651  45,295  54,094  46,639  50,086 
Total Liabilities8,755,077  8,476,456  8,425,856  8,394,387  8,159,723 
STOCKHOLDERS' EQUITY         
Cumulative Preferred Stock, $1,000 par value, $1,000 liquidation value:         
Authorized -- 600 shares         
Issued and outstanding125  125  125  125  125 
Common Stock, $.125 stated value:         
Authorized -- 100,000,000 shares         
Issued and outstanding6,179  6,169  6,163  6,160  6,155 
Additional paid-in capital839,919  840,052  837,996  836,549  834,894 
Retained earnings611,220  583,336  552,551  522,362  493,624 
Accumulated other comprehensive loss(1,595) (21,422) (35,409) (24,868) (21,725)
Total Stockholders' Equity1,455,848  1,408,260  1,361,426  1,340,328  1,313,073 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$10,210,925  $9,884,716  $9,787,282  $9,734,715  $9,472,796 
          


CONSOLIDATED STATEMENTS OF INCOME         
(Dollars In Thousands, Except Per Share Amounts)March 31, December 31, September 30, June 30, March 31,
 2019 2018 2018 2018 2018
INTEREST INCOME         
Loans receivable:         
Taxable$90,481  $91,092  $88,479  $84,663  $78,267 
Tax-exempt4,153  3,873  3,761  3,632  3,596 
Investment securities:         
Taxable6,095  5,553  5,514  5,434  5,096 
Tax-exempt6,871  6,644  6,493  6,246  6,126 
Deposits with financial institutions875  1,207  270  633  131 
Federal Home Loan Bank stock338  284  283  263  404 
Total Interest Income108,813  108,653  104,800  100,871  93,620 
INTEREST EXPENSE         
Deposits19,594  16,690  13,685  12,165  9,002 
Federal funds purchased93  48  229  61  380 
Securities sold under repurchase agreements330  243  174  172  173 
Federal Home Loan Bank advances1,814  1,691  2,137  1,845  2,159 
Subordinated debentures and term loans2,116  2,097  2,089  2,057  1,990 
Total Interest Expense23,947  20,769  18,314  16,300  13,704 
NET INTEREST INCOME84,866  87,884  86,486  84,571  79,916 
Provision for loan losses1,200  1,664  1,400  1,663  2,500 
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES83,666  86,220  85,086  82,908  77,416 
OTHER INCOME         
Service charges on deposit accounts5,095  5,516  5,619  5,038  4,777 
Fiduciary and wealth management fees3,818  3,842  3,673  3,595  3,796 
Card payment fees4,826  4,393  4,586  4,462  4,594 
Net gains and fees on sales of loans1,295  1,767  1,841  1,600  1,821 
Derivative hedge fees781  645  775  231  842 
Other customer fees439  511  452  455  442 
Earnings on cash surrender value of life insurance989  1,074  961  1,007  1,176 
Net realized gains on sales of available for sale securities1,140  253  1,285  1,122  1,609 
Other income330  1,179  335  681  504 
Total Other Income18,713  19,180  19,527  18,191  19,561 
OTHER EXPENSES         
Salaries and employee benefits33,028  34,350  32,936  32,192  32,226 
Net occupancy5,027  4,737  4,586  4,348  4,670 
Equipment3,642  3,627  3,483  3,556  3,668 
Marketing1,074  1,107  1,216  1,474  884 
Outside data processing fees3,684  3,367  3,422  3,462  2,964 
Printing and office supplies315  433  334  324  334 
Intangible asset amortization1,528  1,625  1,650  1,718  1,726 
FDIC assessments707  634  856  711  719 
Other real estate owned and foreclosure expenses1,165  251  455  362  402 
Professional and other outside services1,884  3,002  1,844  1,789  1,541 
Other expenses4,567  4,605  4,240  3,568  4,553 
Total Other Expenses56,621  57,738  55,022  53,504  53,687 
INCOME BEFORE INCOME TAX45,758  47,662  49,591  47,595  43,290 
Income tax expense6,941  5,949  8,478  7,961  6,611 
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$38,817  $41,713  $41,113  $39,634  $36,679 
          
Per Share Data:         
Basic Net Income Available to Common Stockholders$0.79  $0.85  $0.83  $0.80  $0.75 
Diluted Net Income Available to Common Stockholders$0.78  $0.85  $0.83  $0.80  $0.74 
Cash Dividends Paid$0.22  $0.22  $0.22  $0.22  $0.18 
Average Diluted Shares Outstanding (in thousands)49,541  49,511  49,492  49,451  49,428 
FINANCIAL RATIOS:         
Return on Average Assets1.54% 1.68% 1.69% 1.63% 1.57%
Return on Average Stockholders' Equity10.86  12.10  12.10  11.94  11.21 
Return on Average Common Stockholders' Equity10.86  12.10  12.10  11.95  11.21 
Average Earning Assets to Average Assets90.60  90.41  90.30  90.14  89.78 
Allowance for Loan Losses as % of Total Loans1.11  1.11  1.11  1.09  1.11 
Net Charge-offs as % of Average Loans (Annualized)0.05  (0.03) 0.03  0.03  0.07 
Average Stockholders' Equity to Average Assets14.18  13.90  13.93  13.69  13.96 
Tax Equivalent Yield on Average Earning Assets4.89  4.97  4.88  4.74  4.57 
Interest Expense/Average Earning Assets1.05  0.93  0.83  0.75  0.65 
Net Interest Margin (FTE) on Average Earning Assets3.84  4.04  4.05  3.99  3.92 
Efficiency Ratio51.18  50.97  49.25  49.32  51.33 
Tangible Common Book Value Per Share$20.07  $19.12  $18.16  $17.71  $17.14 
                    


LOANS         
(Dollars In Thousands)March 31, December 31, September 30, June 30, March 31,
 2019 2018 2018 2018 2018
Commercial and industrial loans$1,788,628  $1,726,664  $1,655,569  $1,657,591  $1,554,169 
Agricultural production financing and other loans to farmers80,357  92,404  88,504  89,093  98,315 
Real estate loans:         
Construction542,501  545,729  668,608  714,866  590,093 
Commercial and farmland2,838,798  2,832,102  2,699,629  2,652,782  2,713,994 
Residential976,668  966,421  965,893  965,720  948,644 
Home equity536,208  528,157  517,303  518,699  510,545 
Individuals' loans for household and other personal expenditures108,216  99,788  98,709  92,809  88,235 
Public finance and other commercial loans427,944  433,202  393,856  389,499  397,701 
Loans7,299,320  7,224,467  7,088,071  7,081,059  6,901,696 
Allowance for loan losses(80,902) (80,552) (78,406) (77,543) (76,420)
NET LOANS$7,218,418  $7,143,915  $7,009,665  $7,003,516  $6,825,276 
                    


DEPOSITS         
(Dollars In Thousands)March 31, December 31, September 30, June 30, March 31,
 2019 2018 2018 2018 2018
Demand deposits$4,101,156  $3,985,178  $3,870,816  $3,933,233  $3,740,395 
Savings deposits2,338,266  2,282,701  2,212,675  2,099,771  2,109,071 
Certificates and other time deposits of $100,000 or more670,199  593,592  602,002  555,910  552,643 
Other certificates and time deposits704,527  646,682  625,341  602,239  584,377 
Brokered deposits233,650  246,440  322,318  312,662  341,149 
TOTAL DEPOSITS$8,047,798  $7,754,593  $7,633,152  $7,503,815  $7,327,635 
                    


CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars in Thousands)
 For the Three Months Ended
 March 31, 2019 March 31, 2018
 Average Balance Interest
 Income /
Expense
 Average
Rate
 Average Balance Interest
 Income /
Expense
 Average
Rate
Assets:           
Interest-bearing time deposits$145,935  $875  2.40% $32,776  $131  1.60%
Federal Home Loan Bank stock24,588  338  5.50  24,385  404  6.63 
Investment Securities: (1)           
Taxable902,402  6,095  2.70  810,385  5,096  2.52 
Tax-Exempt (2)829,085  8,697  4.20  736,544  7,754  4.21 
Total Investment Securities1,731,487  14,792  3.42  1,546,929  12,850  3.32 
Loans held for sale9,703  112  4.62  10,636  137  5.15 
Loans: (3)           
Commercial5,309,998  72,758  5.48  4,980,450  62,154  4.99 
Real Estate Mortgage743,736  8,321  4.48  728,725  7,999  4.39 
Installment665,050  9,290  5.59  623,429  7,977  5.12 
Tax-Exempt (2)501,632  5,257  4.19  467,847  4,552  3.89 
Total Loans7,230,119  95,738  5.30  6,811,087  82,819  4.86 
Total Earning Assets9,132,129  111,743  4.89  8,415,177  96,204  4.57 
Net unrealized gain (loss) on securities available for sale(5,015)     (6,440)    
Allowance for loan losses(80,907)     (75,851)    
Cash and cash equivalents117,224      126,484     
Premises and equipment93,236      95,525     
Other assets823,475      817,841     
Total Assets$10,080,142      $9,372,736     
Liabilities:           
Interest-bearing deposits:           
Interest-bearing deposits$2,689,797  $7,019  1.04% $1,980,141  $2,689  0.54%
Money market deposits1,139,062  2,782  0.98  1,089,694  1,275  0.47 
Savings deposits1,150,725  2,267  0.79  945,940  381  0.16 
Certificates and other time deposits1,565,578  7,526  1.92  1,486,093  4,657  1.25 
Total Interest-bearing Deposits6,545,162  19,594  1.20  5,501,868  9,002  0.65 
Borrowings635,058  4,353  2.74  848,208  4,702  2.22 
Total Interest-bearing Liabilities7,180,220  23,947  1.33  6,350,076  13,704  0.86 
Noninterest-bearing deposits1,391,494      1,651,296     
Other liabilities78,689      62,560     
Total Liabilities8,650,403      8,063,932     
Stockholders' Equity1,429,739      1,308,804     
Total Liabilities and Stockholders' Equity$10,080,142  23,947    $9,372,736  13,704   
Net Interest Income (FTE)  $87,796      $82,500   
Net Interest Spread (FTE) (4)    3.56%     3.71%
            
Net Interest Margin (FTE):           
Interest Income (FTE) / Average Earning Assets    4.89%     4.57%
Interest Expense / Average Earning Assets    1.05%     0.65%
Net Interest Margin (FTE) (5)    3.84%     3.92%
            
(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 21 percent for 2019 and 2018.  These totals equal $2,930 and $2,584 for the three months ended March 31, 2019 and 2018, respectively.
(3)  Non accruing loans have been included in the average balances.
(4)  Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
(5)  Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.
 

For more information, contact:
Nicole M. Weaver, Vice President and Director of Corporate Administration
765-521-7619
http://www.firstmerchants.com

FMC Logo with trademark.jpg

Source: First Merchants Corporation

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