First Merchants Corporation Announces 4th Quarter 2009 Earnings and 1st Quarter 2010 Dividends
MUNCIE, Ind.--(BUSINESS WIRE)-- First Merchants Corporation (NASDAQ: FRME) has reported a fourth quarter 2009 net loss of $11.7 million, or $.55 per fully diluted common share. The Corporation's fourth quarter loss contributed to an annual fully diluted common share loss of $2.17, down from the prior year income of $1.14.
Michael C. Rechin, President and Chief Executive Officer, stated that, "2009 proved to be a challenge and a disappointment by many measures including net income, EPS and our stock price. The earnings shortfall is nearly 100 percent the result of credit costs including provision, OREO and legal expense totaling $135 million. The magnitude of the provisioning was a function of charge-offs and the building of our loan loss reserve given the protracted recessionary environment. The net affect of the 2009 experience produced positive strides in process, underwriting and policy.
"Our core business remains very healthy, and we are satisfied with many aspects of our operations. Our deposit mix improved materially through the year driving our net-interest margin higher for each of the last three quarters. We grew demand deposits and savings balances by 10% over year-end 2008 and 7% over September 30, 2009. The liquidity we built allowed for brokered deposits and non-customer borrowings to be reduced in excess of $370 million, contributing to our net-interest margin strength. Our efficiency also improved through the year having successfully integrated the acquisition of Lincoln Bancorp and combining four bank charters into First Merchants Bank."
The loss for the quarter was primarily due to provision for loan losses of $26 million with net charge-offs of $21 million. The Corporation's allowance for loan losses increased to $92 million, or 2.81 percent of total loans as of year-end from 1.33 percent, as of December 31, 2008, a $43 million increase. The Corporation's coverage ratio of allowance to non-accrual loans improved to 78 percent, the highest level in five quarters.
Non-performing assets (NPA) plus 90 days delinquent loans declined for the first time in eight quarters totaling $146 million, or 3.26 percent of total assets. The six percent decline in overall NPAs included a reduction in non-accrual loans despite the addition of two large credit relationships totaling $28 million.
Net-Interest margin remained strong up three basis points (bps) linked quarter-over-quarter to 3.86 percent as net interest income totaled nearly $38 million, reflecting the strength of ongoing operations. Interest reversals on non-accrual loans totaled $2.9 million for the year and $592,000 for the quarter depressing net-interest margin by six bps for both periods.
Total non-interest income totaled $10.6 million for the quarter, after adjusting for gains from the sale of securities totaling $2.0 million and other-than-temporary impairment (OTTI) charges of $3.0 million. The expected decline linked quarter-over-quarter is consistent with prior years as mortgage banking fees and insurance commissions are seasonal. For the year, non-interest income, excluding bond gains and losses and a one time mortgage portfolio sale gain, totaled $46.5 million.
Total non-interest expense, for the fourth quarter, increased by $662,000 as salary and benefits expense increased by $735,000 linked quarter-over-quarter. The increase in salary and benefits expense is the result of two items including $407,000 of severance expense in the fourth quarter and a $500,000 bonus accrual reversal in the third quarter. When normalized, the Corporation's salary and benefit costs are actually down another $172,000. The positive impact of the severance expense will be reflected in first quarter 2010 operating results.
The Corporation's pre-tax, pre-provision earnings totaled $7.5 million for the quarter and $53 million for the full year. When normalized for a fully taxable equivalent net interest income and extraordinary items, the pre-tax, pre-provision earnings totaled $15.7 million for the quarter and $70.9 million for the full year. Extraordinary items include bond gains, OTTI expense, ORE write-downs, professional services related to credit losses and FHLB prepayment penalties.
For the year 2009, the Corporation experienced a combination of extraordinary expenses associated with credit-related OREO write-downs of $9.8 million, professional services related to credit losses totaling $3.0 million, FDIC special assessment fees of $2.2 million and $1.9 million of prepayment penalties related to FHLB advances. When adjusted for the extraordinary levels of these expenses the Corporation's operating costs totaled $134.7 million.
As of December 31, 2009, the Corporation's total risk-based capital measured 13.04 percent, Tier 1 risk-based capital totaled 10.32 percent, Tier 1 leverage ratio totaled 8.20 percent, and tangible common equity ratio totaled 4.54 percent. All regulatory capital ratios exceed the regulatory definitions of "well capitalized".
The Corporation's management and Board of Directors believe that retaining capital to protect and strengthen the Corporation is one of its highest priorities. As a result, the board of directors, on January 29, 2010, declared a reduced cash dividend of $.01 payable on March 19, 2010, to shareholders of record as of March 5, 2010.
Rechin continued, "We are pleased to have started a new year and there is evidence of a return towards profitability based on our NPA, impaired asset levels and delinquency trends. Our non-performing asset reduction in the fourth quarter and the slowing of migration in delinquency suggests a peak in provisioning. Our feeling is that absent a reversal in the current recovery, we are nearing the end of our reserve building. We look forward to fully maximizing our pre-tax pre-provision earnings run rate of nearly $70 million in the future as the expense of loan losses begins to slow."
CONFERENCE CALL
First Merchants Corporation will conduct a fourth quarter earnings conference call and web cast at 2:30 p.m. (ET) on Monday, February 1, 2010.
To participate, dial (Toll Free) 800-860-2442 and reference First Merchants Corporation's fourth quarter earnings release. International callers please call +1 412-858-4600. A replay of the call will be available until February 9, 2010 at 9:00 a.m. (ET). To access a replay of the call, US/Canada participants should dial (Toll Free) 877-344-7529 or for International participants, dial +1 412-317-0088. The replay passcode is 436868.
In order to view the web cast and presentation slides, please go to http://www.talkpoint.com/viewer/starthere.asp?Pres=129270 during the time of the call.
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, A Division of First Merchants Bank, N.A., Commerce National Bank, A Division of First Merchants Bank, N.A., as well as First Merchants Trust Company, N.A., and First Merchants Insurance Services, a full-service property casualty, personal lines, and healthcare insurance agency.
First Merchants Corporation's common stock is traded over-the-counter on the NASDAQ National 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).
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands) December 31,
2009 2008
ASSETS
Cash and due from banks $ 76,801 $ 84,249
Federal funds sold 102,346 66,237
Cash and cash equivalents 179,147 150,486
Interest-bearing time deposits 74,025 38,823
Investment securities 563,117 481,984
Mortgage loans held for sale 8,036 4,295
Loans 3,269,788 3,721,952
Less: Allowance for loan losses (92,131 ) (49,543 )
Net loans 3,177,657 3,672,409
Premises and equipment 55,804 59,641
Federal Reserve and Federal Home Loan Bank stock 38,576 34,319
Interest receivable 20,818 23,976
Core deposit intangibles and goodwill 158,740 165,974
Cash surrender value of life insurance 94,636 93,222
Other real estate owned 14,879 18,458
Tax asset, deferred and receivable 64,394 26,738
Other assets 31,123 13,830
TOTAL ASSETS $ 4,480,952 $ 4,784,155
LIABILITIES
Deposits:
Noninterest-bearing $ 516,487 $ 460,519
Interest-bearing 3,020,049 3,258,292
Total Deposits 3,536,536 3,718,811
Borrowings:
Securities sold under repurchase agreements 125,687 122,311
Federal Home Loan Bank advances 129,749 360,217
Subordinated debentures, revolving credit lines and 194,790 135,826
term loans
Total Borrowings 450,226 618,354
Interest payable 5,711 8,844
Other liabilities 24,694 42,243
Total Liabilities 4,017,167 4,388,252
STOCKHOLDERS' EQUITY
Preferred Stock, no-par value:
Authorized -- 500,000 shares
Series A, Issued and outstanding - 116,000 shares 112,373
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 - 21,227,741 and 21,178,123 2,653 2,647
shares
Additional paid-in capital 206,600 202,299
Retained earnings 150,860 206,496
Accumulated other comprehensive loss (8,826 ) (15,664 )
Total Stockholders' Equity 463,785 395,903
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 4,480,952 $ 4,784,155
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Dollars in thousands, except Three Months Ended Twelve Months Ended
per share amounts)
December 31, December 31,
2009 2008 2009 2008
INTEREST INCOME
Loans receivable:
Taxable $ 48,297 $ 48,433 $ 205,616 $ 198,385
Tax exempt 296 349 1,038 1,013
Investment securities:
Taxable 2,348 2,907 12,335 12,046
Tax exempt 2,668 1,511 9,587 5,855
Federal funds sold 37 7 118 28
Deposits with financial 75 194 366 755
institutions
Federal Reserve and Federal Home 348 335 1,379 1,391
Loan Bank stock
Total Interest Income 54,069 53,736 230,439 219,473
INTEREST EXPENSE
Deposits 12,445 15,638 58,391 67,581
Federal funds purchased 108 28 1,856
Securities sold under repurchase 511 502 1,997 2,600
agreements
Federal Home Loan Bank advances 1,627 2,583 9,232 11,168
Subordinated debentures,
revolving credit lines and term 1,921 1,757 7,445 6,884
loans
Total Interest Expense 16,504 20,588 77,093 90,089
NET INTEREST INCOME 37,565 33,148 153,346 129,384
Provision for loan losses 26,020 10,251 122,176 28,238
NET INTEREST INCOME AFTER 11,545 22,897 31,170 101,146
PROVISION FOR LOAN LOSSES
OTHER INCOME
Service charges on deposit 3,735 3,346 15,128 13,002
accounts
Fiduciary activities 1,826 1,831 7,409 8,031
Other customer fees 1,969 1,634 7,922 6,776
Commission income 1,181 1,271 6,397 5,824
Earnings on cash surrender value 569 (2,130 ) 1,614 (267 )
of life insurance
Net gains and fees on sales of 1,744 531 6,849 2,490
loans
Net realized and unrealized
gains on sales of available for 1,984 328 11,141 599
sale securities
Other-than-temporary impairment (2,979 ) (1,242 ) (6,729 ) (2,682 )
on available for sale securities
Other income (472 ) 717 1,470 2,594
Total Other Income 9,557 6,286 51,201 36,367
OTHER EXPENSES
Salaries and employee benefits 18,680 15,880 76,325 63,006
Net occupancy 2,816 2,299 10,250 7,711
Equipment 1,935 1,713 7,595 6,659
Marketing 513 610 2,134 2,311
Outside data processing fees 1,488 1,128 6,186 4,087
Printing and office supplies 359 361 1,419 1,214
Core deposit amortization 1,277 809 5,109 3,216
FDIC assessments 3,203 530 10,394 857
Other expenses 9,386 5,670 32,146 19,731
Total Other Expenses 39,657 29,000 151,558 108,792
INCOME (LOSS) BEFORE INCOME TAX (18,555 ) 183 (69,187 ) 28,721
Income tax expense (benefit) (8,334 ) (38 ) (28,424 ) 8,083
NET INCOME (LOSS) (10,221 ) 221 (40,763 ) 20,638
Preferred stock dividends and 1,451 4,979
discount accretion
NET INCOME (LOSS) AVAILABLE TO $ (11,672 ) $ 221 $ (45,742 ) $ 20,638
COMMON STOCKHOLDERS
Per Share Data:
Basic Net Income (Loss) $ (0.55 ) $ 0.01 $ (2.17 ) $ 1.14
Available to Common Stockholders
Diluted Net Income (Loss) $ (0.55 ) $ 0.01 $ (2.17 ) $ 1.14
Available to Common Stockholders
Cash Dividends Paid $ 0.08 $ 0.23 $ 0.47 $ 0.92
Average Diluted Shares 21,211 18,257 21,117 18,162
Outstanding (in thousands)
FINANCIAL HIGHLIGHTS
(Dollars in Three Months Ended Twelve Months Ended
thousands)
December 31, December 31,
2009 2008 2009 2008
NET CHARGE OFF'S $ 20,807 $ 4,372 $ 81,628 $ 15,602
AVERAGE BALANCES:
Total Assets $ 4,503,078 $ 3,870,148 $ 4,674,590 $ 3,811,166
Total Loans 3,345,086 3,082,061 3,546,316 3,002,628
Total Deposits 3,544,233 3,009,123 3,603,509 2,902,902
Total Stockholders' 473,014 353,159 477,148 349,594
Equity
FINANCIAL RATIOS:
Return on Average (1.04 )% 0.02 % (0.98 )% 0.54 %
Assets
Return on Average (9.87 ) 0.25 (9.59 ) 5.90
Stockholders' Equity
Average Earning
Assets to Average 90.28 91.15 90.81 90.88
Assets
Allowance for Loan
Losses as % of Total 2.81 1.33 2.81 1.33
Loans
Net Charge Off's as %
of Average Loans 2.49 0.57 2.30 0.52
(Annualized)
Dividend Payout Ratio (14.55 ) 2,300.00 (21.66 ) 80.70
Average Stockholders'
Equity to Average 10.50 9.13 10.21 9.17
Assets
Tax Equivalent Yield 5.48 6.21 5.56 6.44
on Earning Assets
Cost of Supporting 1.62 2.33 1.82 2.60
Liabilities
Net Interest Margin
(FTE) on Earning 3.86 3.88 3.74 3.84
Assets
NON-PERFORMING ASSETS
(Dollars in December September June 30, March 31, December 31,
thousands) 31, 30,
2009 2009 2009 2009 2008
Non-Accrual $ 118,409 $ 123,290 $ 112,220 $ 108,546 $ 87,546
Loans
Renegotiated 8,833 5,595 4,216 130
Loans
Non-Performing 127,242 128,885 116,436 108,546 87,676
Loans (NPL)
Real Estate
Owned and 14,879 21,778 20,227 22,077 18,458
Repossessed
Assets
Non-Performing 142,121 150,663 136,663 130,623 106,134
Assets (NPA)
90+ Days 3,967 5,422 3,596 7,732 5,982
Delinquent
NPAS & 90 Day $ 146,088 $ 156,085 $ 140,259 $ 138,355 $ 112,116
Delinquent
Loan Loss $ 92,131 $ 86,918 $ 77,119 $ 58,502 $ 49,543
Reserve
YTD 81,628 60,821 46,380 6,002 15,602
Charge-offs
NPAs / Actual 3.17 % 3.37 % 2.90 % 2.67 % 2.22 %
Assets %
NPAs & 90 Day
/ Actual 3.26 % 3.49 % 2.97 % 2.83 % 2.34 %
Assets %
NPAs / Actual
Loans and REO 4.32 % 4.37 % 3.80 % 3.54 % 2.83 %
%
Loan Loss
Reserves / 2.81 % 2.54 % 2.16 % 1.60 % 1.33 %
Actual Loans
(%)
NCOs / YTD
Average Loans 2.30 % 1.68 % 1.27 % 0.16 % 0.52 %
(%)
CONSOLIDATED BALANCE SHEETS
(Dollars in December September June 30, March 31, December
thousands) 31, 30, 31,
2009 2009 2009 2009 2008
ASSETS
Cash and due from $ 76,801 $ 66,887 $ 73,668 $ 96,606 $ 84,249
banks
Federal funds sold 102,346 52,828 89,282 66,237
Cash and cash 179,147 119,715 73,668 185,888 150,486
equivalents
Interest-bearing 74,025 44,312 44,595 158,295 38,823
time deposits
Investment 563,117 489,010 630,958 446,316 481,984
securities
Mortgage loans held 8,036 25,173 23,070 8,659 4,295
for sale
Loans 3,269,788 3,398,722 3,554,229 3,654,074 3,721,952
Less: Allowance for (92,131 ) (86,918 ) (77,119 ) (58,502 ) (49,543 )
loan losses
Net loans 3,177,657 3,311,804 3,477,110 3,595,572 3,672,409
Premises and 55,804 58,482 58,692 58,948 59,641
equipment
Federal Reserve and
Federal Home Loan 38,576 38,576 34,441 34,420 34,319
Bank stock
Interest receivable 20,818 22,359 20,778 20,783 23,976
Core deposit
intangibles and 158,740 160,017 161,294 162,571 165,974
goodwill
Cash surrender
value of life 94,636 94,267 93,876 93,544 93,222
insurance
Other real estate 14,879 21,778 20,227 22,077 18,458
owned
Tax asset, deferred 64,394 59,244 62,183 36,543 26,738
and refundable
Other assets 31,123 31,747 16,153 63,281 13,830
TOTAL ASSETS $ 4,480,952 $ 4,476,484 $ 4,717,045 $ 4,886,897 $ 4,784,155
LIABILITIES
Deposits:
Noninterest-bearing $ 516,487 $ 477,040 $ 512,368 $ 462,167 $ 460,519
Interest-bearing 3,020,049 3,035,455 3,078,555 3,222,797 3,258,292
Total Deposits 3,536,536 3,512,495 3,590,923 3,684,964 3,718,811
Borrowings:
Federal funds 15,042
purchased
Securities sold
under repurchase 125,687 125,045 115,011 113,106 122,311
agreements
Federal Home Loan 129,749 130,024 268,938 278,583 360,217
Bank advances
Subordinated
debentures,
revolving credit 194,790 194,787 194,783 204,779 135,826
lines and term
loans
Total Borrowings 450,226 449,856 593,774 596,468 618,354
Interest payable 5,711 5,722 7,351 8,278 8,844
Other liabilities 24,694 32,511 51,619 89,082 42,243
Total Liabilities 4,017,167 4,000,584 4,243,667 4,378,792 4,388,252
STOCKHOLDERS'
EQUITY
Preferred Stock,
no-par value:
Authorized --
500,000 shares
Series A, Issued
and outstanding - 112,373 112,190 112,009 111,831
116,000 shares
Cumulative
Preferred Stock,
$1,000 par value,
$1,000 liquidation
value:
Authorized -- 600
shares
Issued and
outstanding - 125 125 125 125 125 125
shares
Common Stock, $.125
stated value:
Authorized --
50,000,000 shares
Issued and
outstanding - 2,653 2,648 2,633 2,632 2,647
21,227,741 and
21,178,123 shares
Additional paid-in 206,600 205,759 204,403 203,889 202,299
capital
Retained earnings 150,860 164,419 172,688 205,616 206,496
Accumulated other (8,826 ) (9,241 ) (18,480 ) (15,988 ) (15,664 )
comprehensive loss
Total Stockholders' 463,785 475,900 473,378 508,105 395,903
Equity
TOTAL LIABILITIES
AND STOCKHOLDERS' $ 4,480,952 $ 4,476,484 $ 4,717,045 $ 4,886,897 $ 4,784,155
EQUITY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in December September March December
thousands, except 31, 30, June 30, 31, 31,
per share amounts)
2009 2009 2009 2009 2008
INTEREST INCOME
Loans receivable:
Taxable $ 48,297 $ 50,683 $ 52,843 $ 53,793 $ 48,433
Tax exempt 296 280 247 215 349
Investment
securities:
Taxable 2,348 2,963 3,261 3,763 2,907
Tax exempt 2,668 2,788 2,362 1,769 1,511
Federal funds sold 37 27 42 12 7
Deposits with
financial 75 73 116 102 194
institutions
Federal Reserve and
Federal Home Loan 348 359 199 473 335
Bank stock
Total Interest 54,069 57,173 59,070 60,127 53,736
Income
INTEREST EXPENSE
Deposits 12,445 13,666 15,569 16,711 15,638
Federal funds 6 22 108
purchased
Securities sold
under repurchase 511 512 507 467 502
agreements
Federal Home Loan 1,627 2,209 2,447 2,949 2,583
Bank advances
Subordinated
debentures, 1,921 1,932 2,113 1,479 1,757
revolving credit
lines and term loans
Total Interest 16,504 18,325 20,636 21,628 20,588
Expense
NET INTEREST INCOME 37,565 38,848 38,434 38,499 33,148
Provision for loan 26,020 24,240 58,995 12,921 10,251
losses
NET INTEREST INCOME
(LOSS) AFTER 11,545 14,608 (20,561 ) 25,578 22,897
PROVISION FOR LOAN
LOSSES
OTHER INCOME
Service charges on 3,735 3,963 3,888 3,542 3,346
deposit accounts
Fiduciary activities 1,826 1,844 1,680 2,059 1,831
Other customer fees 1,969 2,004 1,946 2,003 1,634
Commission income 1,181 1,459 1,698 2,059 1,271
Earnings on cash
surrender value of 569 391 331 323 (2,130 )
life insurance
Net gains and fees 1,744 1,997 1,678 1,430 531
on sales of loans
Net realized and
unrealized gains on 1,984 5,211 1,154 2,792 328
sales of available
for sale securities
Other-than-temporary
impairment on (2,979 ) (1,227 ) (2,045 ) (478 ) (1,242 )
available for sale
securities
Other income (472 ) 41 1,160 741 717
Total Other Income 9,557 15,683 11,490 14,471 6,286
OTHER EXPENSES
Salaries and 18,680 17,945 19,685 20,015 15,880
employee benefits
Net occupancy 2,816 2,422 2,443 2,569 2,299
Equipment 1,935 1,875 1,909 1,876 1,713
Marketing 513 508 564 549 610
Outside data 1,488 1,360 1,405 1,933 1,128
processing fees
Printing and office 359 300 397 363 361
supplies
Core deposit 1,277 1,277 1,278 1,277 809
amortization
FDIC assessments 3,203 3,121 3,494 576 530
Other expenses 9,386 10,187 7,017 5,556 5,670
Total Other Expenses 39,657 38,995 38,192 34,714 29,000
INCOME (LOSS) BEFORE (18,555 ) (8,704 ) (47,263 ) 5,335 183
INCOME TAX
Income tax expense (8,334 ) (3,774 ) (17,534 ) 1,218 (38 )
(benefit)
NET INCOME (LOSS) (10,221 ) (4,930 ) (29,729 ) 4,117 221
Preferred stock
dividends and 1,451 1,450 1,450 628
discount accretion
NET INCOME (LOSS)
AVAILABLE TO COMMON $ (11,672 ) $ (6,380 ) $ (31,179 ) $ 3,489 $ 221
STOCKHOLDERS
PER SHARE:
Basic Net Income
(Loss) Available to $ (0.55 ) $ (0.30 ) $ (1.49 ) $ 0.17 $ 0.01
Common Stockholders
Diluted Net Income
(Loss) Available to $ (0.55 ) $ (0.30 ) $ (1.49 ) $ 0.17 $ 0.01
Common Stockholders
Cash Dividends Paid $ 0.08 $ 0.08 $ 0.08 $ 0.23 $ 0.23
Average Diluted
Shares Outstanding 21,211 21,170 21,120 21,093 18,257
(in thousands)
FINANCIAL RATIOS:
Return on Average (1.04 )% (0.55 )% (2.59 )% 0.30 % 0.02 %
Assets
Return on Average (9.87 ) (5.35 ) (24.58 ) 3.10 0.25
Stockholders' Equity
Average Earning
Assets to Average 90.28 90.82 91.07 91.07 91.15
Assets
Allowance for Loan
Losses as % of Total 2.81 2.54 2.16 1.60 1.33
Loans
Net Charge Off's as
% of Average Loans 2.49 1.64 4.44 0.65 0.57
(Annualized)
Dividend Payout (14.55 ) (26.67 ) (5.41 ) 135.29 2,300.00
Ratio
Average
Stockholders' Equity 10.50 10.23 10.54 9.55 9.13
to Average Assets
Tax Equivalent Yield 5.48 5.56 5.52 5.69 6.21
on Earning Assets
Cost of Supporting 1.62 1.73 1.88 2.01 2.33
Liabilities
Net Interest Margin
(FTE) on Earning 3.86 3.83 3.64 3.68 3.88
Assets
LOANS
(Dollars in December September June 30, March 31, December
thousands) 31, 30, 31,
2009 2009 2009 2009 2008
Commercial
and $ 675,860 $ 806,289 $ 874,671 $ 891,393 $ 904,646
industrial
loans
Agricultural
production
financing 121,031 124,601 121,361 120,462 135,099
and other
loans to
farmers
Real estate
loans:
Construction 158,725 147,343 162,765 208,145 252,487
Commercial 1,254,115 1,228,983 1,231,986 1,246,450 1,202,372
and farmland
Residential 841,584 855,931 930,714 949,259 956,245
Individuals'
loans for
household 154,132 177,338 174,363 193,109 201,632
and other
personal
expenditures
Tax exempt 22,049 23,846 23,596 18,121 28,070
loans
Lease
financing
receivables, 7,135 7,797 8,095 8,178 8,996
net of
unearned
income
Other loans 35,157 26,594 26,678 18,957 32,405
3,269,788 3,398,722 3,554,229 3,654,074 3,721,952
Allowance
for loan (92,131 ) (86,918 ) (77,119 ) (58,502 ) (49,543 )
losses
TOTAL LOANS $ 3,177,657 $ 3,311,804 $ 3,477,110 $ 3,595,572 $ 3,672,409
DEPOSITS
(Dollars in December 31, September June 30, March 31, December 31,
thousands) 30,
2009 2009 2009 2009 2008
Demand $ 1,308,741 $ 1,178,372 $ 1,197,646 $ 1,166,205 $ 1,136,267
deposits
Savings 733,142 726,894 740,340 743,812 721,387
deposits
Certificates
and other
time 438,264 492,875 503,971 511,873 546,081
deposits of
$100,000 or
more
Other
certificates 781,509 803,173 835,899 853,149 837,793
and time
deposits
Brokered 274,880 311,181 313,067 409,925 477,283
deposits
TOTAL $ 3,536,536 $ 3,512,495 $ 3,590,923 $ 3,684,964 $ 3,718,811
DEPOSITS
Source: First Merchants Corporation
Contact: First Merchants Corporation Mark K. Hardwick, Executive Vice President/Chief Financial Officer, 765-751-1857 http://www.firstmerchants.com