UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (Date of earliest event reported): April 28, 2010
Commission File Number 0-17071
FIRST MERCHANTS CORPORATION
(Exact name of registrant as specified in its charter)
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INDIANA
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35-1544218
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(State or other jurisdiction of incorporation)
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(IRS Employer Identification No.)
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200 East Jackson Street
P.O. Box 792
Muncie, IN 47305-2814
(Address of principal executive offices, including zip code)
(765) 747-1500
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On April 28, 2010 First Merchants Corporation issued a press release to report its financial results for the first quarter ended March 31, 2010. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information in this Current Report on Form 8-K, including Exhibit No. 99.1 hereto, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section. The information in this Current Report shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(a) Not applicable.
(b) Not applicable.
(c) Exhibits.
Exhibit 99.1 Press Release, dated April 28, 2010, issued by First Merchants Corporation
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
First Merchants Corporation
(Registrant)
By: /s/ Mark K. Hardwick
Mark K. Hardwick
Executive Vice President and Chief Financial Officer
(Principal Financial and Principal Accounting Officer)
Dated: April 28, 2010
EXHIBIT INDEX
Exhibit No.
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99.1
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Description
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Press Release, dated April 28, 2010, issued by First Merchants Corporation
N / E / W / S R / E / L / E / A / S / E
April 28, 2010
FOR IMMEDIATE RELEASE
For more information, contact:
Mark K. Hardwick, Executive Vice President/Chief Financial Officer, 765-751-1857
http://www.firstmerchants.com
SOURCE: First Merchants Corporation, Muncie, Indiana
FIRST MERCHANTS CORPORATION ANNOUNCES 1ST QUARTER PROFIT AND IMPROVED TANGIBLE CAPITAL
First Merchants Corporation (NASDAQ – FRME) has reported a first quarter return to profitability. Earnings per share totaled $.01 per fully diluted common share, a $.16 reduction from the first quarter of 2009. Net income totaled $136,000 for the quarter, an $11.8 million improvement over the fourth quarter of 2009.
Michael C. Rechin, President and Chief Executive Officer, stated, “Returning to profitability in the first quarter of 2010 is a significant milestone as the Corporation emerges from the deepest recession in decades. Our expense management during the quarter was highly encouraging despite a continuation of elevated levels of credit related legal and other real estate owned (OREO) costs.” Rechin also stated, “It’s satisfying to see our registered direct private placement of $24.2 million completed on March 30, 2010 receive such positive acceptance in the market. Our improved tangible common equity ratio of 5.27 percent and total risk-based capital level of 14.44 percent provide a very stable capital base for the future. Our focus moving forward remains on meeting the needs of the communities
and customers we serve and monitoring the recovery of our local economies and our loan portfolio.”
Total assets were $4.376 billion as of quarter end and total loans were $3.134 billion as loan demand for quality credit opportunities remains challenging. The added liquidity produced from growth in the Corporation’s demand deposits of $95 million and loan maturities, through the quarter, resulted in strategic reductions of higher paying deposit liabilities and borrowings and increases in the Corporation’s bond portfolio. The Corporation’s loan to deposit ratio is now 92.25 percent and its loan to asset ratio totals 71.63 percent.
Non-performing assets (NPA) plus 90 days delinquent loans declined for the second quarter in a row totaling $145 million, or 3.30 percent of total assets. The Corporation’s allowance for loan losses increased to 2.82 percent of total loans, a $30 million increase over the same period last year. Net charge-offs for the quarter totaled $17.4 million exceeding provision expense of $13.9 million by $3.5 million.
Net-Interest margin expanded by 14 basis points and remained strong compared to this time last year totaling 3.82 percent as net interest income totaled just over $36 million, reflecting the strength of ongoing operations. Interest reversals on non-accrual loans totaled more than $700,000 during the quarter reducing net interest margin by just over 7 basis points.
Non-interest income totaled $11.6 million for the quarter, after adjusting for gains from the sale of securities totaling $1.8 million and other-than-temporary impairment (OTTI) charges of $488,000. The first quarter of 2009 totaled $12.2 million on a comparative basis. Of the decline, nearly $500,000 is related to the lower income derived from interest rate floors that expired early last year.
Total non-interest expense for the first quarter of 2010 totaled $34.6 million and is now back in line with first quarter 2009 results. During 2009, OREO expenses increased as a result of the difficult credit environment peaking at $5.8 million during the third quarter and still remain high totaling $2.7 million, or $2.2 million higher than the first quarter of 2009. However, the stabilization of credit related costs when combined with aggressive salary and benefit expense reductions of $2.5 million, or 12.2 percent, produced a $5 million decrease linked quarter over quarter.
The Corporation’s pre-tax, pre-provision earnings totaled $14.5 million for the quarter. When normalized for a fully taxable equivalent net interest income and extraordinary items, the pre-tax, pre-provision earnings totaled $18.5 million for the first quarter of 2010, an improvement over the first quarter 2009 total of $17.6 million.
As of March 31, 2010, the Corporation’s total risk-based capital measured 14.44 percent, Tier 1 risk-based capital totaled 11.65 percent, Tier 1 leverage ratio totaled 9.13 percent, and tangible common equity ratio totaled 5.27 percent. All regulatory capital ratios exceed the regulatory definitions of “well capitalized”.
CONFERENCE CALL
First Merchants Corporation will conduct a first quarter earnings conference call and web cast at 2:30 p.m. (ET) on Wednesday, April 28, 2010.
To participate, dial (Toll Free) 800-860-2442 and reference First Merchants Corporation’s first quarter earnings release. International callers please call +1 412-858-4600. A replay of the call will be available until May 10, 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 439167.
In order to view the web cast and presentation slides, please go to http://www.talkpoint.com/viewer/starthere.asp?Pres=130292 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 Group, 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).
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CONSOLIDATED BALANCE SHEETS
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(Dollars in thousands)
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March 31,
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2010
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2009
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ASSETS
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Cash and due from banks
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$ | 52,679 | $ | 96,606 | ||||
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Federal funds sold
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7,044 | 89,282 | ||||||
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Cash and cash equivalents
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59,723 | 185,888 | ||||||
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Interest-bearing time deposits
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157,735 | 158,295 | ||||||
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Investment securities
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639,081 | 446,316 | ||||||
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Mortgage loans held for sale
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3,646 | 8,659 | ||||||
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Loans
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3,134,540 | 3,654,074 | ||||||
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Less: Allowance for loan losses
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(88,568 | ) | (58,502 | ) | ||||
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Net loans
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3,045,972 | 3,595,572 | ||||||
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Premises and equipment
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54,431 | 58,948 | ||||||
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Federal Reserve and Federal Home Loan Bank stock
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36,721 | 34,420 | ||||||
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Interest receivable
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19,532 | 20,783 | ||||||
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Core deposit intangibles and goodwill
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157,532 | 162,571 | ||||||
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Cash surrender value of life insurance
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95,146 | 93,544 | ||||||
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Other real estate owned
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18,268 | 22,077 | ||||||
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Tax asset, deferred and receivable
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59,190 | 36,543 | ||||||
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Other assets
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28,889 | 63,281 | ||||||
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TOTAL ASSETS
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$ | 4,375,866 | $ | 4,886,897 | ||||
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LIABILITIES
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Deposits:
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Noninterest-bearing
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$ | 520,551 | $ | 462,167 | ||||
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Interest-bearing
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2,877,235 | 3,222,797 | ||||||
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Total Deposits
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3,397,786 | 3,684,964 | ||||||
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Borrowings:
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Securities sold under repurchase agreements
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112,826 | 113,106 | ||||||
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Federal Home Loan Bank advances
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123,261 | 278,583 | ||||||
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Subordinated debentures, revolving credit lines and term loans
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194,794 | 204,779 | ||||||
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Total Borrowings
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430,881 | 596,468 | ||||||
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Interest payable
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4,812 | 8,278 | ||||||
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Other liabilities
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53,446 | 89,082 | ||||||
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Total Liabilities
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3,886,925 | 4,378,792 | ||||||
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STOCKHOLDERS' EQUITY
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Preferred Stock, no-par value:
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Authorized -- 500,000 shares
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Series A, Issued and outstanding - 116,000 shares
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112,559 | 111,831 | ||||||
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Cumulative Preferred Stock, $1,000 par value, $1,000 liquidation value:
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Authorized -- 600 shares
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Issued and outstanding - 125 shares
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125 | 125 | ||||||
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Common Stock, $.125 stated value:
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Authorized -- 50,000,000 shares
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Issued and outstanding - 25,495,550 and 21,055,881 shares
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3,187 | 2,632 | ||||||
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Additional paid-in capital
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230,764 | 203,889 | ||||||
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Retained earnings
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150,595 | 205,616 | ||||||
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Accumulated other comprehensive loss
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(8,289 | ) | (15,988 | ) | ||||
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Total Stockholders' Equity
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488,941 | 508,105 | ||||||
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
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$ | 4,375,866 | $ | 4,886,897 | ||||
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CONSOLIDATED STATEMENTS OF OPERATIONS
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(Dollars in thousands, except per share amounts)
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Three Months Ended
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March 31,
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2010
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2009
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INTEREST INCOME
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Loans receivable:
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Taxable
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$ | 45,448 | $ | 53,793 | ||||
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Tax exempt
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277 | 215 | ||||||
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Investment securities:
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Taxable
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2,891 | 3,763 | ||||||
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Tax exempt
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2,646 | 1,769 | ||||||
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Federal funds sold
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17 | 12 | ||||||
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Deposits with financial institutions
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60 | 102 | ||||||
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Federal Reserve and Federal Home Loan Bank stock
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360 | 473 | ||||||
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Total Interest Income
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51,699 | 60,127 | ||||||
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INTEREST EXPENSE
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Deposits
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11,495 | 16,711 | ||||||
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Federal funds purchased
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22 | |||||||
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Securities sold under repurchase agreements
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499 | 467 | ||||||
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Federal Home Loan Bank advances
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1,564 | 2,949 | ||||||
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Subordinated debentures, revolving credit lines and term loans
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1,926 | 1,479 | ||||||
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Total Interest Expense
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15,484 | 21,628 | ||||||
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NET INTEREST INCOME
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36,215 | 38,499 | ||||||
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Provision for loan losses
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13,869 | 12,921 | ||||||
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NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
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22,346 | 25,578 | ||||||
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OTHER INCOME
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Service charges on deposit accounts
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3,262 | 3,542 | ||||||
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Fiduciary activities
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2,060 | 2,059 | ||||||
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Other customer fees
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2,498 | 2,003 | ||||||
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Commission income
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1,989 | 2,059 | ||||||
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Earnings on cash surrender value of life insurance
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508 | 323 | ||||||
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Net gains and fees on sales of loans
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1,149 | 1,430 | ||||||
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Net realized and unrealized gains on sales of available for sale securities
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1,842 | 2,792 | ||||||
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Other-than-temporary impairment on available for sale securities
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(488 | ) | (478 | ) | ||||
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Other income
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144 | 741 | ||||||
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Total Other Income
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12,964 | 14,471 | ||||||
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OTHER EXPENSES
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Salaries and employee benefits
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17,562 | 20,015 | ||||||
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Net occupancy
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2,851 | 2,569 | ||||||
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Equipment
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1,853 | 1,876 | ||||||
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Marketing
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429 | 549 | ||||||
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Outside data processing fees
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1,280 | 1,933 | ||||||
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Printing and office supplies
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318 | 363 | ||||||
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Core deposit amortization
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1,207 | 1,277 | ||||||
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FDIC assessments
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1,722 | 576 | ||||||
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Other expenses
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7,418 | 5,556 | ||||||
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Total Other Expenses
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34,640 | 34,714 | ||||||
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INCOME BEFORE INCOME TAX
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670 | 5,335 | ||||||
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Income tax expense (benefit)
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(916 | ) | 1,218 | |||||
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NET INCOME
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1,586 | 4,117 | ||||||
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Preferred stock dividends and discount accretion
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1,450 | 628 | ||||||
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NET INCOME AVAILABLE TO COMMON STOCKHOLDERS
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$ | 136 | $ | 3,489 | ||||
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Per Share Data:
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Basic Net Income Available to Common Stockholders
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$ | 0.01 | $ | 0.17 | ||||
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Diluted Net Income Available to Common Stockholders
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$ | 0.01 | $ | 0.17 | ||||
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Cash Dividends Paid
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$ | 0.01 | $ | 0.23 | ||||
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Average Diluted Shares Outstanding (in thousands)
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21,462 | 21,093 | ||||||
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FINANCIAL HIGHLIGHTS
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(Dollars in thousands)
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Three Months Ended
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March 31,
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2010
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2009
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NET CHARGE OFF'S
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$ | 17,432 | $ | 6,002 | ||||
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AVERAGE BALANCES:
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Total Assets
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$ | 4,363,768 | $ | 4,720,134 | ||||
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Total Loans
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3,203,826 | 3,696,076 | ||||||
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Total Earning Assets
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3,955,515 | 4,298,621 | ||||||
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Total Deposits
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3,431,831 | 3,637,656 | ||||||
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Total Stockholders' Equity
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466,994 | 450,654 | ||||||
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FINANCIAL RATIOS:
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Return on Average Assets
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0.01 | % | 0.30 | % | ||||
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Return on Average Stockholders' Equity
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0.12 | 3.10 | ||||||
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Average Earning Assets to Average Assets
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90.64 | 91.07 | ||||||
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Allowance for Loan Losses as % of Total Loans
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2.82 | 1.60 | ||||||
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Net Charge Off's as % of Average Loans (Annualized)
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2.18 | 0.65 | ||||||
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Dividend Payout Ratio
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100.00 | 135.29 | ||||||
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Average Stockholders' Equity to Average Assets
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10.70 | 9.55 | ||||||
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Tax Equivalent Yield on Earning Assets
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5.39 | 5.69 | ||||||
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Cost of Supporting Liabilities
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1.57 | 2.01 | ||||||
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Net Interest Margin (FTE) on Earning Assets
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3.82 | 3.68 | ||||||
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NON-PERFORMING ASSETS
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(Dollars in thousands)
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March 31,
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December 31,
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September 30,
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June 30,
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March 31,
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2010
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2009
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2009
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2009
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2009
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Non-Accrual Loans
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$ | 122,891 | $ | 118,409 | $ | 123,290 | $ | 112,220 | $ | 108,546 | ||||||||||
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Renegotiated Loans
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859 | 8,833 | 5,595 | 4,216 | ||||||||||||||||
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Non-Performing Loans (NPL)
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123,750 | 127,242 | 128,885 | 116,436 | 108,546 | |||||||||||||||
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Real Estate Owned and Repossessed Assets
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18,268 | 14,879 | 21,778 | 20,227 | 22,077 | |||||||||||||||
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Non-Performing Assets (NPA)
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142,018 | 142,121 | 150,663 | 136,663 | 130,623 | |||||||||||||||
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90+ Days Delinquent
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2,600 | 3,967 | 5,422 | 3,596 | 7,732 | |||||||||||||||
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NPAS & 90 Day Delinquent
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$ | 144,618 | $ | 146,088 | $ | 156,085 | $ | 140,259 | $ | 138,355 | ||||||||||
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Loan Loss Reserve
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$ | 88,568 | $ | 92,131 | $ | 86,918 | $ | 77,119 | $ | 58,502 | ||||||||||
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YTD Charge-offs
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17,432 | 81,628 | 60,821 | 46,380 | 6,002 | |||||||||||||||
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NPAs / Actual Assets %
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3.25 | % | 3.17 | % | 3.37 | % | 2.90 | % | 2.67 | % | ||||||||||
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NPAs & 90 Day / Actual Assets %
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3.30 | % | 3.26 | % | 3.49 | % | 2.97 | % | 2.83 | % | ||||||||||
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NPAs / Actual Loans and REO %
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4.50 | % | 4.32 | % | 4.37 | % | 3.80 | % | 3.54 | % | ||||||||||
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Loan Loss Reserves / Actual Loans (%)
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2.82 | % | 2.81 | % | 2.54 | % | 2.16 | % | 1.60 | % | ||||||||||
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NCOs / YTD Average Loans (%)
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0.54 | % | 2.30 | % | 1.68 | % | 1.27 | % | 0.16 | % | ||||||||||
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CONSOLIDATED BALANCE SHEETS
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(Dollars in thousands)
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March 31,
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December 31,
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September 30,
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June 30,
|
March 31,
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|||||||||||||||
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2010
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2009
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2009
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2009
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2009
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||||||||||||||||
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ASSETS
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Cash and due from banks
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$ | 52,679 | $ | 76,801 | $ | 66,887 | $ | 73,668 | $ | 96,606 | ||||||||||
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Federal funds sold
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7,044 | 102,346 | 52,828 | 89,282 | ||||||||||||||||
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Cash and cash equivalents
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59,723 | 179,147 | 119,715 | 73,668 | 185,888 | |||||||||||||||
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Interest-bearing time deposits
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157,735 | 74,025 | 44,312 | 44,595 | 158,295 | |||||||||||||||
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Investment securities
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639,081 | 563,117 | 489,010 | 630,958 | 446,316 | |||||||||||||||
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Mortgage loans held for sale
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3,646 | 8,036 | 25,173 | 23,070 | 8,659 | |||||||||||||||
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Loans
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3,134,540 | 3,269,788 | 3,398,722 | 3,554,229 | 3,654,074 | |||||||||||||||
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Less: Allowance for loan losses
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(88,568 | ) | (92,131 | ) | (86,918 | ) | (77,119 | ) | (58,502 | ) | ||||||||||
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Net loans
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3,045,972 | 3,177,657 | 3,311,804 | 3,477,110 | 3,595,572 | |||||||||||||||
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Premises and equipment
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54,431 | 55,804 | 58,482 | 58,692 | 58,948 | |||||||||||||||
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Federal Reserve and Federal Home Loan Bank stock
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36,721 | 38,576 | 38,576 | 34,441 | 34,420 | |||||||||||||||
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Interest receivable
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19,532 | 20,818 | 22,359 | 20,778 | 20,783 | |||||||||||||||
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Core deposit intangibles and goodwill
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157,532 | 158,740 | 160,017 | 161,294 | 162,571 | |||||||||||||||
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Cash surrender value of life insurance
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95,146 | 94,636 | 94,267 | 93,876 | 93,544 | |||||||||||||||
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Other real estate owned
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18,268 | 14,879 | 21,778 | 20,227 | 22,077 | |||||||||||||||
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Tax asset, deferred and refundable
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59,190 | 64,394 | 59,244 | 62,183 | 36,543 | |||||||||||||||
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Other assets
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28,889 | 31,123 | 31,747 | 16,153 | 63,281 | |||||||||||||||
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TOTAL ASSETS
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$ | 4,375,866 | $ | 4,480,952 | $ | 4,476,484 | $ | 4,717,045 | $ | 4,886,897 | ||||||||||
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LIABILITIES
|
||||||||||||||||||||
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Deposits:
|
||||||||||||||||||||
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Noninterest-bearing
|
$ | 520,551 | $ | 516,487 | $ | 477,040 | $ | 512,368 | $ | 462,167 | ||||||||||
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Interest-bearing
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2,877,235 | 3,020,049 | 3,035,455 | 3,078,555 | 3,222,797 | |||||||||||||||
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Total Deposits
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3,397,786 | 3,536,536 | 3,512,495 | 3,590,923 | 3,684,964 | |||||||||||||||
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Borrowings:
|
||||||||||||||||||||
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Federal funds purchased
|
15,042 | |||||||||||||||||||
|
Securities sold under repurchase agreements
|
112,826 | 125,687 | 125,045 | 115,011 | 113,106 | |||||||||||||||
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Federal Home Loan Bank advances
|
123,261 | 129,749 | 130,024 | 268,938 | 278,583 | |||||||||||||||
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Subordinated debentures, revolving credit lines and term loans
|
194,794 | 194,790 | 194,787 | 194,783 | 204,779 | |||||||||||||||
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Total Borrowings
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430,881 | 450,226 | 449,856 | 593,774 | 596,468 | |||||||||||||||
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Interest payable
|
4,812 | 5,711 | 5,722 | 7,351 | 8,278 | |||||||||||||||
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Other liabilities
|
53,446 | 24,694 | 32,511 | 51,619 | 89,082 | |||||||||||||||
|
Total Liabilities
|
3,886,925 | 4,017,167 | 4,000,584 | 4,243,667 | 4,378,792 | |||||||||||||||
|
STOCKHOLDERS' EQUITY
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Preferred Stock, no-par value:
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Authorized -- 500,000 shares
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Series A, Issued and outstanding - 116,000 shares
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112,559 | 112,373 | 112,190 | 112,009 | 111,831 | |||||||||||||||
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Cumulative Preferred Stock, $1,000 par value, $1,000 liquidation value:
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Authorized -- 600 shares
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Issued and outstanding - 125 shares
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125 | 125 | 125 | 125 | 125 | |||||||||||||||
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Common Stock, $.125 stated value:
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Authorized -- 50,000,000 shares
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Issued and outstanding - 25,495,550 and 21,055,881 shares
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3,187 | 2,653 | 2,648 | 2,633 | 2,632 | |||||||||||||||
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Additional paid-in capital
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230,764 | 206,600 | 205,759 | 204,403 | 203,889 | |||||||||||||||
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Retained earnings
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150,595 | 150,860 | 164,419 | 172,688 | 205,616 | |||||||||||||||
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Accumulated other comprehensive loss
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(8,289 | ) | (8,826 | ) | (9,241 | ) | (18,480 | ) | (15,988 | ) | ||||||||||
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Total Stockholders' Equity
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488,941 | 463,785 | 475,900 | 473,378 | 508,105 | |||||||||||||||
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
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$ | 4,375,866 | $ | 4,480,952 | $ | 4,476,484 | $ | 4,717,045 | $ | 4,886,897 | ||||||||||
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CONSOLIDATED STATEMENTS OF OPERATIONS
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(Dollars in thousands, except per share amounts)
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March 31,
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December 31,
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September 30,
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June 30,
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March 31,
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2010
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2009
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2009
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2009
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2009
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INTEREST INCOME
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Loans receivable:
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Taxable
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$ | 45,448 | $ | 48,297 | $ | 50,683 | $ | 52,843 | $ | 53,793 | ||||||||||
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Tax exempt
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277 | 296 | 280 | 247 | 215 | |||||||||||||||
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Investment securities:
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Taxable
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2,891 | 2,348 | 2,963 | 3,261 | 3,763 | |||||||||||||||
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Tax exempt
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2,646 | 2,668 | 2,788 | 2,362 | 1,769 | |||||||||||||||
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Federal funds sold
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17 | 37 | 27 | 42 | 12 | |||||||||||||||
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Deposits with financial institutions
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60 | 75 | 73 | 116 | 102 | |||||||||||||||
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Federal Reserve and Federal Home Loan Bank stock
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360 | 348 | 359 | 199 | 473 | |||||||||||||||
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Total Interest Income
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51,699 | 54,069 | 57,173 | 59,070 | 60,127 | |||||||||||||||
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INTEREST EXPENSE
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Deposits
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11,495 | 12,445 | 13,666 | 15,569 | 16,711 | |||||||||||||||
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Federal funds purchased
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6 | 22 | ||||||||||||||||||
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Securities sold under repurchase agreements
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499 | 511 | 512 | 507 | 467 | |||||||||||||||
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Federal Home Loan Bank advances
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1,564 | 1,627 | 2,209 | 2,447 | 2,949 | |||||||||||||||
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Subordinated debentures, revolving credit lines and term loans
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1,926 | 1,921 | 1,932 | 2,113 | 1,479 | |||||||||||||||
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Total Interest Expense
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15,484 | 16,504 | 18,325 | 20,636 | 21,628 | |||||||||||||||
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NET INTEREST INCOME
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36,215 | 37,565 | 38,848 | 38,434 | 38,499 | |||||||||||||||
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Provision for loan losses
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13,869 | 26,020 | 24,240 | 58,995 | 12,921 | |||||||||||||||
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NET INTEREST INCOME (LOSS) AFTER PROVISION FOR LOAN LOSSES
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22,346 | 11,545 | 14,608 | (20,561 | ) | 25,578 | ||||||||||||||
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OTHER INCOME
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Service charges on deposit accounts
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3,262 | 3,735 | 3,963 | 3,888 | 3,542 | |||||||||||||||
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Fiduciary activities
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2,060 | 1,826 | 1,844 | 1,680 | 2,059 | |||||||||||||||
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Other customer fees
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2,498 | 1,969 | 2,004 | 1,946 | 2,003 | |||||||||||||||
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Commission income
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1,989 | 1,181 | 1,459 | 1,698 | 2,059 | |||||||||||||||
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Earnings on cash surrender value of life insurance
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508 | 569 | 391 | 331 | 323 | |||||||||||||||
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Net gains and fees on sales of loans
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1,149 | 1,744 | 1,997 | 1,678 | 1,430 | |||||||||||||||
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Net realized and unrealized gains on sales of available for sale securities
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1,842 | 1,984 | 5,211 | 1,154 | 2,792 | |||||||||||||||
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Other-than-temporary impairment on available for sale securities
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(488 | ) | (2,979 | ) | (1,227 | ) | (2,045 | ) | (478 | ) | ||||||||||
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Other income
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144 | (472 | ) | 41 | 1,160 | 741 | ||||||||||||||
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Total Other Income
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12,964 | 9,557 | 15,683 | 11,490 | 14,471 | |||||||||||||||
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OTHER EXPENSES
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Salaries and employee benefits
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17,562 | 18,680 | 17,945 | 19,685 | 20,015 | |||||||||||||||
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Net occupancy
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2,851 | 2,816 | 2,422 | 2,443 | 2,569 | |||||||||||||||
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Equipment
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1,853 | 1,935 | 1,875 | 1,909 | 1,876 | |||||||||||||||
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Marketing
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429 | 513 | 508 | 564 | 549 | |||||||||||||||
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Outside data processing fees
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1,280 | 1,488 | 1,360 | 1,405 | 1,933 | |||||||||||||||
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Printing and office supplies
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318 | 359 | 300 | 397 | 363 | |||||||||||||||
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Core deposit amortization
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1,207 | 1,277 | 1,277 | 1,278 | 1,277 | |||||||||||||||
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FDIC assessments
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1,722 | 3,203 | 3,121 | 3,494 | 576 | |||||||||||||||
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Other expenses
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7,418 | 9,386 | 10,187 | 7,017 | 5,556 | |||||||||||||||
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Total Other Expenses
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34,640 | 39,657 | 38,995 | 38,192 | 34,714 | |||||||||||||||
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INCOME (LOSS) BEFORE INCOME TAX
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670 | (18,555 | ) | (8,704 | ) | (47,263 | ) | 5,335 | ||||||||||||
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Income tax expense (benefit)
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(916 | ) | (8,334 | ) | (3,774 | ) | (17,534 | ) | 1,218 | |||||||||||
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NET INCOME (LOSS)
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1,586 | (10,221 | ) | (4,930 | ) | (29,729 | ) | 4,117 | ||||||||||||
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Preferred stock dividends and discount accretion
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1,450 | 1,451 | 1,450 | 1,450 | 628 | |||||||||||||||
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NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS
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$ | 136 | $ | (11,672 | ) | $ | (6,380 | ) | $ | (31,179 | ) | $ | 3,489 | |||||||
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PER SHARE:
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Basic Net Income (Loss) Available to Common Stockholders
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$ | 0.01 | $ | (0.55 | ) | $ | (0.30 | ) | $ | (1.49 | ) | $ | 0.17 | |||||||
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Diluted Net Income (Loss) Available to Common Stockholders
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$ | 0.01 | $ | (0.55 | ) | $ | (0.30 | ) | $ | (1.49 | ) | $ | 0.17 | |||||||
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Cash Dividends Paid
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$ | 0.01 | $ | 0.08 | $ | 0.08 | $ | 0.08 | $ | 0.23 | ||||||||||
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Average Diluted Shares Outstanding (in thousands)
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21,462 | 21,211 | 21,170 | 21,120 | 21,093 | |||||||||||||||
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FINANCIAL RATIOS:
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Return on Average Assets
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0.01 | % | -1.04 | % | -0.55 | % | -2.59 | % | 0.30 | % | ||||||||||
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Return on Average Stockholders' Equity
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0.12 | (9.87 | ) | (5.35 | ) | (24.58 | ) | 3.10 | ||||||||||||
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Average Earning Assets to Average Assets
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90.64 | 90.28 | 90.82 | 91.07 | 91.07 | |||||||||||||||
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Allowance for Loan Losses as % of Total Loans
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2.82 | 2.81 | 2.54 | 2.16 | 1.60 | |||||||||||||||
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Net Charge Off's as % of Average Loans (Annualized)
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2.18 | 2.49 | 1.64 | 4.44 | 0.65 | |||||||||||||||
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Dividend Payout Ratio
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100.00 | (14.55 | ) | (26.67 | ) | (5.41 | ) | 135.29 | ||||||||||||
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Average Stockholders' Equity to Average Assets
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10.70 | 10.50 | 10.23 | 10.54 | 9.55 | |||||||||||||||
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Tax Equivalent Yield on Earning Assets
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5.39 | 5.48 | 5.56 | 5.52 | 5.69 | |||||||||||||||
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Cost of Supporting Liabilities
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1.57 | 1.62 | 1.73 | 1.88 | 2.01 | |||||||||||||||
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Net Interest Margin (FTE) on Earning Assets
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3.82 | 3.86 | 3.83 | 3.64 | 3.68 | |||||||||||||||
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LOANS
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(Dollars in thousands)
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March 31,
|
December 31,
|
September 30,
|
June 30,
|
March 31,
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|||||||||||||||
|
2010
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2009
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2009
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2009
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2009
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Commercial and industrial loans
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$ | 621,591 | $ | 675,860 | $ | 806,289 | $ | 874,671 | $ | 891,393 | ||||||||||
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Agricultural production financing and other loans to farmers
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109,457 | 121,031 | 124,601 | 121,361 | 120,462 | |||||||||||||||
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Real estate loans:
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Construction
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131,548 | 158,725 | 147,343 | 162,765 | 208,145 | |||||||||||||||
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Commercial and farmland
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1,259,588 | 1,254,115 | 1,228,983 | 1,231,986 | 1,246,450 | |||||||||||||||
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Residential
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821,014 | 841,584 | 855,931 | 930,714 | 949,259 | |||||||||||||||
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Individuals' loans for household and other personal expenditures
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142,108 | 154,132 | 177,338 | 174,363 | 193,109 | |||||||||||||||
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Tax exempt loans
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23,047 | 22,049 | 23,846 | 23,596 | 18,121 | |||||||||||||||
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Lease financing receivables, net of unearned income
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6,396 | 7,135 | 7,797 | 8,095 | 8,178 | |||||||||||||||
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Other loans
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19,791 | 35,157 | 26,594 | 26,678 | 18,957 | |||||||||||||||
| 3,134,540 | 3,269,788 | 3,398,722 | 3,554,229 | 3,654,074 | ||||||||||||||||
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Allowance for loan losses
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(88,568 | ) | (92,131 | ) | (86,918 | ) | (77,119 | ) | (58,502 | ) | ||||||||||
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TOTAL LOANS
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$ | 3,045,972 | $ | 3,177,657 | $ | 3,311,804 | $ | 3,477,110 | $ | 3,595,572 | ||||||||||
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DEPOSITS
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(Dollars in thousands)
|
March 31,
|
December 31,
|
September 30,
|
June 30,
|
March 31,
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|
2010
|
2009
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2009
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2009
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2009
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Demand deposits
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$ | 1,261,305 | $ | 1,308,741 | $ | 1,178,372 | $ | 1,197,646 | $ | 1,166,205 | ||||||||||
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Savings deposits
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738,742 | 733,142 | 726,894 | 740,340 | 743,812 | |||||||||||||||
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Certificates and other time deposits of $100,000 or more
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416,113 | 438,264 | 492,875 | 503,971 | 511,873 | |||||||||||||||
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Other certificates and time deposits
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750,382 | 781,509 | 803,173 | 835,899 | 853,149 | |||||||||||||||
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Brokered deposits
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231,244 | 274,880 | 311,181 | 313,067 | 409,925 | |||||||||||||||
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TOTAL DEPOSITS
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$ | 3,397,786 | $ | 3,536,536 | $ | 3,512,495 | $ | 3,590,923 | $ | 3,684,964 | ||||||||||