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): January 24, 2013
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 January 24, 2013 First Merchants Corporation issued a press release to report its financial results for the fourth quarter ended December 31, 2012. 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 January 24, 2013, 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: January 24, 2013
EXHIBIT INDEX
Exhibit No. Description
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99.1
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Press Release, dated January 24, 2013, issued by First Merchants Corporation
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N / E / W / S R / E / L / E / A / S / E
January 24, 2013
FOR IMMEDIATE RELEASE
For more information, contact:
David L. Ortega, First Vice President/Director of Investor Relations
765-378-8937
http://www.firstmerchants.com/
SOURCE: First Merchants Corporation, Muncie, Indiana
FIRST MERCHANTS CORPORATION ANNOUNCES 2012 RECORD NET INCOME OF MORE THAN $40 MILLION DOLLARS
First Merchants Corporation (NASDAQ – FRME) has reported full year 2012 record net income available to common shareholders of $40.6 million compared to $9.0 million earned in 2011.
Michael C. Rechin, President and Chief Executive Officer, stated, “Our 2012 results represent a return to high performance banking. Our Board of Directors, management team and dedicated employees are very pleased to have established record high net income results for our shareholders. Beyond the level of net income, our highlights for 2012 include a successful closing of an immediately accretive in-market acquisition, an increase in the rate of organic loan growth and an increase in the level of our common
dividend.” Rechin also stated, “our team is encouraged by the momentum we take into 2013 despite the challenging low interest rate environment.”
Year-to-date earnings per share totaled $1.41, a $1.07 per share increase over the prior year total of $.34 per share. Within the $1.41 earnings per share, $.21 is related to the one-time gain on the Corporation’s FDIC purchase and assumption agreement with SCB Bank in Shelbyville, Indiana, during the first quarter of 2012. The balance of our 2012 results represent increased levels of earnings from our relationship-driven banking model that produced higher levels of revenue from multiple income
sources.
Fourth quarter 2012 earnings per share of $.32 compared to $.24 per share during the same period in 2011. Net income available to common shareholders totaled $9.2 million for the quarter, a $2.7 million increase over the fourth quarter of 2011.
Total assets equaled $4.3 billion, as loans and investments totaled $2.9 billion and $874 million, respectively. Loans increased for the fifth consecutive quarter due to the addition of calling officers and economic improvements in our marketplace. The Corporation’s loan-to-deposit ratio and loan-to-asset ratio remained steady at 87 percent and 67 percent, respectively.
Net-interest income totaled $38.3 million for the fourth quarter of 2012 and net-interest margin remained strong totaling 4.10 percent as yields on earning assets totaled 4.58 percent and the cost of supporting liabilities totaled .48 percent. Discount accretion resulting from the SCB transaction added $1.3 million, or 13 basis points, to net-interest income and net-interest margin for the fourth quarter of 2012. YTD net-interest income totaled $152.3 million, an increase of $9.0 million over 2011.
Non-interest income totaled $14.2 million for the fourth quarter of 2012 and $64.3 million year-to-date. After normalizing for bond gains and the first quarter 2012 FDIC gain, non-interest income for 2012 improved by $5.7 million, or 12 percent over 2011. Gains from the sale of mortgage loans accounted for $3.2 million of the increase as our investment in mortgage origination and fulfillment maximized the advantageous mortgage rate environment. Total non-interest expenses of $137.1 million increased by $1.2 million, or
less than 1 percent, during 2012.
Provision expense totaled $4.5 million for the fourth quarter 2012 and $18.5 million year-to-date, compared to $5.9 million and $22.6 million in 2011. Net charge-offs were $4.6 million for the fourth quarter of 2012 and $20.1 million year-to-date, compared to $8.0 million and $34.7 million in 2011. The allowance for loan losses is $69.4 million, or 2.37 percent of total loans and 130 percent of non-accrual loans, the highest coverage ratio since 2006.
As of December 31, 2012, the Corporation’s total risk-based capital equaled 16.34 percent, Tier 1 common risk-based capital equaled 9.62 percent, and tangible common equity ratio totaled 7.55 percent. As of December 31, 2011 the Corporation’s total risk-based capital equaled 16.54 percent, Tier 1 common risk-based capital equaled 8.83 percent, and tangible common equity ratio totaled 6.84 percent.
CONFERENCE CALL
First Merchants Corporation will conduct a fourth quarter earnings conference call and web cast at 2:30 p.m. (ET) on Thursday, January 24, 2013.
To participate, dial (Toll Free) 888-317-6016 and reference First Merchants Corporation’s fourth quarter earnings release. International callers please call +1 412-317-6016. A replay of the call will be available until January 24, 2014. To access a replay of the call, US participants should dial (Toll Free) 877-344-7529 or for International participants, dial +1 412-317-0088. The replay passcode is 10023446.
In order to view the web cast and presentation slides, please go to http://services.choruscall.com/links/frme130124.html 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, Commerce National Bank, and First Merchants Trust Company as divisions of First Merchants Bank, N.A. First Merchants Corporation also operates First Merchants Insurance Group, a full-service property casualty, personal lines, and healthcare insurance agency.
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).
* * * *
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CONSOLIDATED BALANCE SHEETS
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||||||||
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(Dollars In Thousands)
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December 31,
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|||||||
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2012
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2011
|
|||||||
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ASSETS
|
||||||||
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Cash and cash equivalents
|
$
|
101,460
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$
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73,312
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||||
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Interest-bearing time deposits
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38,443
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52,851
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||||||
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Investment securities
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874,363
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946,400
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||||||
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Mortgage loans held for sale
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22,300
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17,864
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||||||
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Loans
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2,902,209
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2,713,415
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||||||
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Less: Allowance for loan losses
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(69,366
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)
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(70,898
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)
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||||
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Net loans
|
2,832,843
|
2,642,517
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||||||
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Premises and equipment
|
52,749
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51,013
|
||||||
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Federal Reserve and Federal Home Loan Bank stock
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32,785
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31,270
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||||||
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Interest receivable
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16,367
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17,723
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||||||
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Core deposit intangibles and goodwill
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149,529
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150,471
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||||||
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Cash surrender value of life insurance
|
125,397
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124,329
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||||||
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Other real estate owned
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13,263
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16,289
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||||||
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Tax asset, deferred and receivable
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30,867
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36,424
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||||||
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Other assets
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14,455
|
12,613
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||||||
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TOTAL ASSETS
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$
|
4,304,821
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$
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4,173,076
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||||
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LIABILITIES
|
||||||||
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Deposits:
|
||||||||
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Noninterest-bearing
|
$
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801,597
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$
|
646,508
|
||||
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Interest-bearing
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2,544,786
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2,488,147
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||||||
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Total Deposits
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3,346,383
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3,134,655
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||||||
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Borrowings:
|
||||||||
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Federal funds purchased
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18,862
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|||||||
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Securities sold under repurchase agreements
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141,828
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156,305
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||||||
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Federal Home Loan Bank advances
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94,238
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138,095
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||||||
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Subordinated debentures and term loans
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112,161
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194,974
|
||||||
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Total Borrowings
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367,089
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489,374
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||||||
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Interest payable
|
1,841
|
2,925
|
||||||
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Other liabilities
|
37,272
|
31,655
|
||||||
|
Total Liabilities
|
3,752,585
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3,658,609
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||||||
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STOCKHOLDERS' EQUITY
|
||||||||
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Preferred Stock, no-par value, $1,000 liquidation value:
|
||||||||
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Authorized -- 500,000 shares
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||||||||
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Senior Non-Cumulative Perpetual Preferred Stock, Series B
|
||||||||
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Issued and outstanding - 90,782.94 shares
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90,783
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90,783
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||||||
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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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||||||||
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Issued and outstanding - 28,692,616 and 28,559,707 shares
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3,587
|
3,570
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||||||
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Additional paid-in capital
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256,843
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254,874
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||||||
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Retained earnings
|
206,397
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168,717
|
||||||
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Accumulated other comprehensive loss
|
(5,499
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)
|
(3,602
|
)
|
||||
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Total Stockholders' Equity
|
552,236
|
514,467
|
||||||
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
4,304,821
|
$
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4,173,076
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||||
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CONSOLIDATED STATEMENTS OF INCOME
|
Three Months Ended
|
Twelve Months Ended
|
||||||||||||||
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(Dollars In Thousands, Except Per Share Amounts)
|
December 31,
|
December 31,
|
||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||
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INTEREST INCOME
|
||||||||||||||||
|
Loans receivable:
|
||||||||||||||||
|
Taxable
|
$
|
36,085
|
$
|
36,497
|
$
|
146,745
|
$
|
149,716
|
||||||||
|
Tax-exempt
|
122
|
93
|
480
|
528
|
||||||||||||
|
Investment securities:
|
||||||||||||||||
|
Taxable
|
3,809
|
4,565
|
17,027
|
19,230
|
||||||||||||
|
Tax-exempt
|
2,544
|
2,550
|
10,189
|
10,167
|
||||||||||||
|
Federal funds sold
|
3
|
|||||||||||||||
|
Deposits with financial institutions
|
31
|
54
|
100
|
282
|
||||||||||||
|
Federal Reserve and Federal Home Loan Bank stock
|
373
|
314
|
1,408
|
1,319
|
||||||||||||
|
Total Interest Income
|
42,964
|
44,073
|
175,949
|
181,245
|
||||||||||||
|
INTEREST EXPENSE
|
||||||||||||||||
|
Deposits
|
3,234
|
4,505
|
14,800
|
22,281
|
||||||||||||
|
Federal funds purchased
|
7
|
3
|
69
|
25
|
||||||||||||
|
Securities sold under repurchase agreements
|
204
|
363
|
907
|
1,511
|
||||||||||||
|
Federal Home Loan Bank advances
|
501
|
1,114
|
2,624
|
4,181
|
||||||||||||
|
Subordinated debentures and term loans
|
753
|
1,908
|
5,213
|
9,892
|
||||||||||||
|
Total Interest Expense
|
4,699
|
7,893
|
23,613
|
37,890
|
||||||||||||
|
NET INTEREST INCOME
|
38,265
|
36,180
|
152,336
|
143,355
|
||||||||||||
|
Provision for loan losses
|
4,505
|
5,855
|
18,534
|
22,630
|
||||||||||||
|
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
|
33,760
|
30,325
|
133,802
|
120,725
|
||||||||||||
|
OTHER INCOME
|
||||||||||||||||
|
Service charges on deposit accounts
|
2,962
|
3,027
|
11,587
|
11,972
|
||||||||||||
|
Fiduciary activities
|
1,984
|
1,804
|
7,891
|
7,650
|
||||||||||||
|
Other customer fees
|
2,757
|
2,572
|
11,233
|
10,024
|
||||||||||||
|
Commission income
|
1,454
|
1,220
|
6,224
|
5,660
|
||||||||||||
|
Earnings on cash surrender value of life insurance
|
693
|
803
|
3,418
|
2,596
|
||||||||||||
|
Net gains and fees on sales of loans
|
3,513
|
2,747
|
10,628
|
7,418
|
||||||||||||
|
Net realized gains on sales of available for sale securities
|
255
|
290
|
2,389
|
2,439
|
||||||||||||
|
Other-than-temporary impairment on available for sale securities
|
(400
|
)
|
||||||||||||||
|
Gain on FDIC modified whole bank transaction
|
9,124
|
|||||||||||||||
|
Other income
|
588
|
508
|
1,808
|
1,761
|
||||||||||||
|
Total Other Income
|
14,206
|
12,971
|
64,302
|
49,120
|
||||||||||||
|
OTHER EXPENSES
|
||||||||||||||||
|
Salaries and employee benefits
|
20,320
|
19,035
|
79,398
|
74,735
|
||||||||||||
|
Net occupancy
|
2,494
|
2,428
|
10,186
|
10,118
|
||||||||||||
|
Equipment
|
1,942
|
1,672
|
7,201
|
6,794
|
||||||||||||
|
Marketing
|
616
|
650
|
2,158
|
2,002
|
||||||||||||
|
Outside data processing fees
|
1,361
|
1,377
|
5,656
|
5,671
|
||||||||||||
|
Printing and office supplies
|
321
|
340
|
1,169
|
1,242
|
||||||||||||
|
Core deposit amortization
|
489
|
591
|
1,927
|
3,548
|
||||||||||||
|
FDIC assessments
|
738
|
775
|
3,509
|
5,531
|
||||||||||||
|
Other real estate owned and credit-related expenses
|
1,766
|
2,569
|
8,178
|
10,614
|
||||||||||||
|
Other expenses
|
4,456
|
3,999
|
17,733
|
15,683
|
||||||||||||
|
Total Other Expenses
|
34,503
|
33,436
|
137,115
|
135,938
|
||||||||||||
|
INCOME BEFORE INCOME TAX
|
13,463
|
9,860
|
60,989
|
33,907
|
||||||||||||
|
Income tax expense
|
3,153
|
2,299
|
15,867
|
8,655
|
||||||||||||
|
NET INCOME
|
10,310
|
7,561
|
45,122
|
25,252
|
||||||||||||
|
Loss on CPP unamortized discount
|
(1,401
|
)
|
||||||||||||||
|
Loss on extinguishment of trust preferred securities
|
(10,857
|
)
|
||||||||||||||
|
Preferred stock dividends and discount accretion
|
(1,135
|
)
|
(1,135
|
)
|
(4,539
|
)
|
(3,981
|
)
|
||||||||
|
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS
|
$
|
9,175
|
$
|
6,426
|
$
|
40,583
|
$
|
9,013
|
||||||||
|
Per Share Data:
|
||||||||||||||||
|
Basic Net Income Available to Common Stockholders
|
$
|
0.32
|
$
|
0.24
|
$
|
1.42
|
$
|
0.34
|
||||||||
|
Diluted Net Income Available to Common Stockholders
|
$
|
0.32
|
$
|
0.24
|
$
|
1.41
|
$
|
0.34
|
||||||||
|
Cash Dividends Paid
|
$
|
0.03
|
$
|
0.01
|
$
|
0.10
|
$
|
0.04
|
||||||||
|
Average Diluted Shares Outstanding (in thousands)
|
28,930
|
28,700
|
28,847
|
26,694
|
||||||||||||
|
FINANCIAL HIGHLIGHTS
|
||||||||||||||||
|
(Dollars in thousands)
|
Three Months Ended
|
Twelve Months Ended
|
||||||||||||||
|
December 31,
|
December 31,
|
|||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||
|
NET CHARGE OFF'S
|
$
|
4,632
|
$
|
8,031
|
$
|
20,066
|
$
|
34,709
|
||||||||
|
AVERAGE BALANCES:
|
||||||||||||||||
|
Total Assets
|
$
|
4,293,082
|
$
|
4,200,685
|
$
|
4,245,996
|
$
|
4,143,850
|
||||||||
|
Total Loans
|
2,867,793
|
2,719,155
|
2,819,816
|
2,748,684
|
||||||||||||
|
Total Earning Assets
|
3,875,969
|
3,766,352
|
3,833,174
|
3,744,027
|
||||||||||||
|
Total Deposits
|
3,321,997
|
3,165,505
|
3,263,020
|
3,175,762
|
||||||||||||
|
Total Stockholders' Equity
|
551,414
|
513,366
|
535,497
|
478,440
|
||||||||||||
|
FINANCIAL RATIOS:
|
||||||||||||||||
|
Return on Average Assets
|
0.85
|
%
|
0.61
|
%
|
0.96
|
%
|
0.22
|
%
|
||||||||
|
Return on Average Stockholders' Equity
|
6.66
|
5.01
|
7.58
|
1.88
|
||||||||||||
|
Return on Average Common Stockholders' Equity
|
7.97
|
6.08
|
9.13
|
2.22
|
||||||||||||
|
Average Earning Assets to Average Assets
|
90.28
|
89.66
|
90.28
|
90.35
|
||||||||||||
|
Allowance for Loan Losses as % of Total Loans
|
2.37
|
2.60
|
2.37
|
2.60
|
||||||||||||
|
Net Charge Off's as % of Average Loans (Annualized)
|
0.65
|
1.18
|
0.71
|
1.26
|
||||||||||||
|
Average Stockholders' Equity to Average Assets
|
12.84
|
12.22
|
12.61
|
11.55
|
||||||||||||
|
Tax Equivalent Yield on Earning Assets
|
4.58
|
4.83
|
4.74
|
4.99
|
||||||||||||
|
Cost of Supporting Liabilities
|
0.48
|
0.84
|
0.62
|
1.01
|
||||||||||||
|
Net Interest Margin (FTE) on Earning Assets
|
4.10
|
3.99
|
4.12
|
3.98
|
||||||||||||
|
NON-PERFORMING ASSETS
|
||||||||||||||||||||
|
(Dollars In Thousands)
|
December 31,
|
September 30,
|
June 30,
|
March 31,
|
December 31,
|
|||||||||||||||
|
2012
|
2012
|
2012
|
2012
|
2011
|
||||||||||||||||
|
Non-Accrual Loans
|
$
|
53,399
|
$
|
56,999
|
$
|
63,127
|
$
|
74,456
|
$
|
69,592
|
||||||||||
|
Renegotiated Loans
|
12,681
|
6,871
|
3,921
|
6,695
|
14,308
|
|||||||||||||||
|
Non-Performing Loans (NPL)
|
66,080
|
63,870
|
67,048
|
81,151
|
83,900
|
|||||||||||||||
|
Other Real Estate Owned
|
13,263
|
13,780
|
14,183
|
15,628
|
16,289
|
|||||||||||||||
|
Non-Performing Assets (NPA)
|
79,343
|
77,650
|
81,231
|
96,779
|
100,189
|
|||||||||||||||
|
90+ Days Delinquent
|
2,037
|
1,974
|
665
|
253
|
580
|
|||||||||||||||
|
NPAS & 90 Day Delinquent
|
$
|
81,380
|
$
|
79,624
|
$
|
81,896
|
$
|
97,032
|
$
|
100,769
|
||||||||||
|
Loan Loss Reserve
|
$
|
69,366
|
$
|
69,493
|
$
|
70,143
|
$
|
70,369
|
$
|
70,898
|
||||||||||
|
Quarterly Net Charge-offs
|
4,632
|
5,259
|
4,771
|
5,404
|
8,031
|
|||||||||||||||
|
NPAs / Actual Assets %
|
1.84
|
%
|
1.83
|
%
|
1.92
|
%
|
2.28
|
%
|
2.40
|
%
|
||||||||||
|
NPAs & 90 Day / Actual Assets %
|
1.89
|
%
|
1.87
|
%
|
1.93
|
%
|
2.29
|
%
|
2.41
|
%
|
||||||||||
|
NPAs / Actual Loans and REO %
|
2.70
|
%
|
2.70
|
%
|
2.87
|
%
|
3.42
|
%
|
3.65
|
%
|
||||||||||
|
Loan Loss Reserves / Actual Loans (%)
|
2.37
|
%
|
2.43
|
%
|
2.49
|
%
|
2.50
|
%
|
2.60
|
%
|
||||||||||
|
Net Charge Off's as % of Average Loans (Annualized)
|
0.65
|
%
|
0.74
|
%
|
0.68
|
%
|
0.78
|
%
|
1.18
|
%
|
||||||||||
|
CONSOLIDATED BALANCE SHEETS
|
||||||||||||||||||||
|
(Dollars In Thousands)
|
December 31,
|
September 30,
|
June 30,
|
March 31,
|
December 31,
|
|||||||||||||||
|
2012
|
2012
|
2012
|
2012
|
2011
|
||||||||||||||||
|
ASSETS
|
||||||||||||||||||||
|
Cash and cash equivalents
|
$
|
101,460
|
$
|
57,027
|
$
|
68,493
|
$
|
60,991
|
$
|
73,312
|
||||||||||
|
Interest-bearing time deposits
|
38,443
|
35,324
|
41,760
|
34,290
|
52,851
|
|||||||||||||||
|
Investment securities
|
874,363
|
928,716
|
944,321
|
960,032
|
946,400
|
|||||||||||||||
|
Mortgage loans held for sale
|
22,300
|
27,711
|
15,278
|
22,138
|
17,864
|
|||||||||||||||
|
Loans
|
2,902,209
|
2,836,324
|
2,797,634
|
2,792,989
|
2,713,415
|
|||||||||||||||
|
Less: Allowance for loan losses
|
(69,366
|
)
|
(69,493
|
)
|
(70,143
|
)
|
(70,369
|
)
|
(70,898
|
)
|
||||||||||
|
Net loans
|
2,832,843
|
2,766,831
|
2,727,491
|
2,722,620
|
2,642,517
|
|||||||||||||||
|
Premises and equipment
|
52,749
|
51,373
|
51,335
|
51,541
|
51,013
|
|||||||||||||||
|
Federal Reserve and Federal Home Loan Bank stock
|
32,785
|
32,824
|
33,033
|
33,026
|
31,270
|
|||||||||||||||
|
Interest receivable
|
16,367
|
17,519
|
16,506
|
16,730
|
17,723
|
|||||||||||||||
|
Core deposit intangibles and goodwill
|
149,529
|
150,019
|
150,006
|
150,486
|
150,471
|
|||||||||||||||
|
Cash surrender value of life insurance
|
125,397
|
124,702
|
124,018
|
123,355
|
124,329
|
|||||||||||||||
|
Other real estate owned
|
13,263
|
13,780
|
14,183
|
15,628
|
16,289
|
|||||||||||||||
|
Tax asset, deferred and receivable
|
30,867
|
29,344
|
32,003
|
32,112
|
36,424
|
|||||||||||||||
|
Other assets
|
14,455
|
14,998
|
13,996
|
13,417
|
12,613
|
|||||||||||||||
|
TOTAL ASSETS
|
$
|
4,304,821
|
$
|
4,250,168
|
$
|
4,232,423
|
$
|
4,236,366
|
$
|
4,173,076
|
||||||||||
|
LIABILITIES
|
||||||||||||||||||||
|
Deposits:
|
||||||||||||||||||||
|
Noninterest-bearing
|
801,597
|
$
|
679,818
|
$
|
684,101
|
$
|
677,643
|
$
|
646,508
|
|||||||||||
|
Interest-bearing
|
2,544,786
|
2,514,933
|
2,604,797
|
2,601,935
|
2,488,147
|
|||||||||||||||
|
Total Deposits
|
3,346,383
|
3,194,751
|
3,288,898
|
3,279,578
|
3,134,655
|
|||||||||||||||
|
Borrowings:
|
||||||||||||||||||||
|
Federal funds purchased
|
18,862
|
57,024
|
652
|
10,936
|
||||||||||||||||
|
Securities sold under repurchase agreements
|
141,828
|
153,454
|
160,127
|
139,308
|
156,305
|
|||||||||||||||
|
Federal Home Loan Bank advances
|
94,238
|
145,467
|
96,847
|
131,496
|
138,095
|
|||||||||||||||
|
Subordinated debentures and term loans
|
112,161
|
112,169
|
115,951
|
115,969
|
194,974
|
|||||||||||||||
|
Total Borrowings
|
367,089
|
468,114
|
373,577
|
397,709
|
489,374
|
|||||||||||||||
|
Interest payable
|
1,841
|
1,591
|
2,168
|
2,094
|
2,925
|
|||||||||||||||
|
Other liabilities
|
37,272
|
38,857
|
32,104
|
29,044
|
31,655
|
|||||||||||||||
|
Total Liabilities
|
3,752,585
|
3,703,313
|
3,696,747
|
3,708,425
|
3,658,609
|
|||||||||||||||
|
STOCKHOLDERS' EQUITY
|
||||||||||||||||||||
|
Preferred Stock, no-par value, $1,000 liquidation value:
|
||||||||||||||||||||
|
Authorized -- 500,000 shares
|
||||||||||||||||||||
|
Senior Non-Cumulative Perpetual Preferred Stock, Series B
|
||||||||||||||||||||
|
Issued and outstanding
|
90,783
|
90,783
|
90,783
|
90,783
|
90,783
|
|||||||||||||||
|
Cumulative Preferred Stock, $1,000 par value, $1,000 liquidation value:
|
||||||||||||||||||||
|
Authorized -- 600 shares
|
||||||||||||||||||||
|
Issued and outstanding
|
125
|
125
|
125
|
125
|
125
|
|||||||||||||||
|
Common Stock, $.125 stated value:
|
||||||||||||||||||||
|
Authorized -- 50,000,000 shares
|
||||||||||||||||||||
|
Issued and outstanding
|
3,587
|
3,584
|
3,580
|
3,578
|
3,570
|
|||||||||||||||
|
Additional paid-in capital
|
256,843
|
256,290
|
255,632
|
255,116
|
254,874
|
|||||||||||||||
|
Retained earnings
|
206,397
|
198,094
|
188,863
|
181,664
|
168,717
|
|||||||||||||||
|
Accumulated other comprehensive loss
|
(5,499
|
)
|
(2,021
|
)
|
(3,307
|
)
|
(3,325
|
)
|
(3,602
|
)
|
||||||||||
|
Total Stockholders' Equity
|
552,236
|
546,855
|
535,676
|
527,941
|
514,467
|
|||||||||||||||
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
4,304,821
|
$
|
4,250,168
|
$
|
4,232,423
|
$
|
4,236,366
|
$
|
4,173,076
|
||||||||||
|
CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||||||||
|
(Dollars In Thousands, Except Per Share Amounts)
|
December 31,
|
September 30,
|
June 30,
|
March 31,
|
December 31,
|
|||||||||||||||
|
2012
|
2012
|
2012
|
2012
|
2011
|
||||||||||||||||
|
INTEREST INCOME
|
||||||||||||||||||||
|
Loans receivable:
|
||||||||||||||||||||
|
Taxable
|
$
|
36,085
|
$
|
38,160
|
$
|
36,652
|
$
|
35,848
|
$
|
36,497
|
||||||||||
|
Tax exempt
|
122
|
118
|
123
|
117
|
93
|
|||||||||||||||
|
Investment securities:
|
||||||||||||||||||||
|
Taxable
|
3,809
|
4,176
|
4,468
|
4,574
|
4,565
|
|||||||||||||||
|
Tax exempt
|
2,544
|
2,532
|
2,551
|
2,562
|
2,550
|
|||||||||||||||
|
Federal funds sold
|
||||||||||||||||||||
|
Deposits with financial institutions
|
31
|
16
|
28
|
25
|
54
|
|||||||||||||||
|
Federal Reserve and Federal Home Loan Bank stock
|
373
|
345
|
347
|
343
|
314
|
|||||||||||||||
|
Total Interest Income
|
42,964
|
45,347
|
44,169
|
43,469
|
44,073
|
|||||||||||||||
|
INTEREST EXPENSE
|
||||||||||||||||||||
|
Deposits
|
3,234
|
3,517
|
3,939
|
4,110
|
4,505
|
|||||||||||||||
|
Federal funds purchased
|
7
|
38
|
12
|
12
|
3
|
|||||||||||||||
|
Securities sold under repurchase agreements
|
204
|
211
|
197
|
295
|
363
|
|||||||||||||||
|
Federal Home Loan Bank advances
|
501
|
492
|
637
|
994
|
1,114
|
|||||||||||||||
|
Subordinated debentures, revolving credit lines and term loans
|
753
|
1,187
|
1,331
|
1,942
|
1,908
|
|||||||||||||||
|
Total Interest Expense
|
4,699
|
5,445
|
6,116
|
7,353
|
7,893
|
|||||||||||||||
|
NET INTEREST INCOME
|
38,265
|
39,902
|
38,053
|
36,116
|
36,180
|
|||||||||||||||
|
Provision for loan losses
|
4,505
|
4,609
|
4,545
|
4,875
|
5,855
|
|||||||||||||||
|
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
|
33,760
|
35,293
|
33,508
|
31,241
|
30,325
|
|||||||||||||||
|
OTHER INCOME
|
||||||||||||||||||||
|
Service charges on deposit accounts
|
2,962
|
2,913
|
2,893
|
2,819
|
3,027
|
|||||||||||||||
|
Fiduciary activities
|
1,984
|
1,986
|
1,938
|
1,983
|
1,804
|
|||||||||||||||
|
Other customer fees
|
2,757
|
2,740
|
3,150
|
2,586
|
2,572
|
|||||||||||||||
|
Commission income
|
1,454
|
1,618
|
1,485
|
1,667
|
1,220
|
|||||||||||||||
|
Earnings on cash surrender value of life insurance
|
693
|
685
|
662
|
1,378
|
803
|
|||||||||||||||
|
Net gains and fees on sales of loans
|
3,513
|
2,849
|
2,314
|
1,952
|
2,747
|
|||||||||||||||
|
Net realized gains on sales of available for sale securities
|
255
|
843
|
502
|
789
|
290
|
|||||||||||||||
|
Gain on FDIC modified whole bank transaction
|
9,124
|
|||||||||||||||||||
|
Other income
|
588
|
639
|
221
|
360
|
508
|
|||||||||||||||
|
Total Other Income
|
14,206
|
14,273
|
13,165
|
22,658
|
12,971
|
|||||||||||||||
|
OTHER EXPENSES
|
||||||||||||||||||||
|
Salaries and employee benefits
|
20,320
|
20,083
|
19,641
|
19,354
|
19,035
|
|||||||||||||||
|
Net occupancy
|
2,494
|
2,568
|
2,473
|
2,651
|
2,428
|
|||||||||||||||
|
Equipment
|
1,942
|
1,798
|
1,656
|
1,805
|
1,672
|
|||||||||||||||
|
Marketing
|
616
|
536
|
564
|
442
|
650
|
|||||||||||||||
|
Outside data processing fees
|
1,361
|
1,413
|
1,506
|
1,376
|
1,377
|
|||||||||||||||
|
Printing and office supplies
|
321
|
287
|
294
|
267
|
340
|
|||||||||||||||
|
Core deposit amortization
|
489
|
489
|
480
|
469
|
591
|
|||||||||||||||
|
FDIC assessments
|
738
|
792
|
862
|
1,117
|
775
|
|||||||||||||||
|
Other real estate owned and credit-related expenses
|
1,766
|
2,104
|
2,122
|
2,186
|
2,569
|
|||||||||||||||
|
Other expenses
|
4,456
|
4,334
|
4,582
|
4,361
|
3,999
|
|||||||||||||||
|
Total Other Expenses
|
34,503
|
34,404
|
34,180
|
34,028
|
33,436
|
|||||||||||||||
|
INCOME BEFORE INCOME TAX
|
13,463
|
15,162
|
12,493
|
19,871
|
9,860
|
|||||||||||||||
|
Income tax expense
|
3,153
|
3,926
|
3,288
|
5,500
|
2,299
|
|||||||||||||||
|
NET INCOME
|
10,310
|
11,236
|
9,205
|
14,371
|
7,561
|
|||||||||||||||
|
Preferred stock dividends and discount accretion
|
(1,135
|
)
|
(1,134
|
)
|
(1,135
|
)
|
(1,135
|
)
|
(1,135
|
)
|
||||||||||
|
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS
|
$
|
9,175
|
$
|
10,102
|
$
|
8,070
|
$
|
13,236
|
$
|
6,426
|
||||||||||
|
PER SHARE:
|
||||||||||||||||||||
|
Basic Net Income Available to Common Stockholders
|
$
|
0.32
|
$
|
0.35
|
$
|
0.29
|
$
|
0.46
|
$
|
0.24
|
||||||||||
|
Diluted Net Income Available to Common Stockholders
|
$
|
0.32
|
$
|
0.35
|
$
|
0.28
|
$
|
0.46
|
$
|
0.24
|
||||||||||
|
Cash Dividends Paid
|
$
|
0.03
|
$
|
0.03
|
$
|
0.03
|
$
|
0.01
|
$
|
0.01
|
||||||||||
|
Average Diluted Shares Outstanding (in thousands)
|
28,930
|
28,888
|
28,815
|
28,755
|
28,700
|
|||||||||||||||
|
FINANCIAL RATIOS:
|
||||||||||||||||||||
|
Return on Average Assets
|
0.85
|
%
|
0.95
|
%
|
0.76
|
%
|
1.26
|
%
|
0.61
|
%
|
||||||||||
|
Return on Average Stockholders' Equity
|
6.66
|
7.47
|
6.07
|
10.23
|
5.01
|
|||||||||||||||
|
Return on Average Common Stockholders' Equity
|
7.97
|
8.98
|
7.32
|
12.40
|
6.08
|
|||||||||||||||
|
Average Earning Assets to Average Assets
|
90.28
|
90.36
|
90.30
|
90.16
|
89.66
|
|||||||||||||||
|
Allowance for Loan Losses as % of Total Loans
|
2.37
|
2.43
|
2.49
|
2.50
|
2.60
|
|||||||||||||||
|
Net Charge Off's as % of Average Loans (Annualized)
|
0.65
|
0.74
|
0.68
|
0.78
|
1.18
|
|||||||||||||||
|
Average Stockholders' Equity to Average Assets
|
12.84
|
12.77
|
12.51
|
12.32
|
12.22
|
|||||||||||||||
|
Tax Equivalent Yield on Earning Assets
|
4.58
|
4.89
|
4.75
|
4.74
|
4.83
|
|||||||||||||||
|
Cost of Supporting Liabilities
|
0.48
|
0.57
|
0.64
|
0.78
|
0.84
|
|||||||||||||||
|
Net Interest Margin (FTE) on Earning Assets
|
4.10
|
4.32
|
4.11
|
3.96
|
3.99
|
|||||||||||||||
|
LOANS
|
||||||||||||||||||||
|
(Dollars In Thousands)
|
December 31,
|
September 30,
|
June 30,
|
March 31,
|
December 31,
|
|||||||||||||||
|
2012
|
2012
|
2012
|
2012
|
2011
|
||||||||||||||||
|
Commercial and industrial loans
|
$
|
622,579
|
$
|
592,517
|
$
|
552,353
|
$
|
546,304
|
$
|
532,523
|
||||||||||
|
Agricultural production financing and other loans to farmers
|
112,527
|
107,166
|
106,135
|
97,165
|
104,526
|
|||||||||||||||
|
Real estate loans:
|
||||||||||||||||||||
|
Construction
|
98,639
|
93,610
|
99,588
|
92,694
|
81,780
|
|||||||||||||||
|
Commercial and farm land
|
1,266,682
|
1,241,054
|
1,219,114
|
1,229,195
|
1,194,230
|
|||||||||||||||
|
Residential
|
473,537
|
475,272
|
480,917
|
498,354
|
481,493
|
|||||||||||||||
|
Home Equity
|
203,406
|
204,888
|
207,250
|
210,564
|
191,631
|
|||||||||||||||
|
Individuals' loans for household and other personal expenditures
|
75,748
|
77,171
|
83,933
|
78,711
|
84,172
|
|||||||||||||||
|
Lease financing receivables, net of unearned income
|
2,590
|
2,970
|
2,976
|
3,112
|
3,555
|
|||||||||||||||
|
Other loans
|
46,501
|
41,676
|
45,368
|
36,890
|
39,505
|
|||||||||||||||
|
Loans
|
2,902,209
|
2,836,324
|
2,797,634
|
2,792,989
|
2,713,415
|
|||||||||||||||
|
Allowance for loan losses
|
(69,366
|
)
|
(69,493
|
)
|
(70,143
|
)
|
(70,369
|
)
|
(70,898
|
)
|
||||||||||
|
NET LOANS
|
$
|
2,832,843
|
$
|
2,766,831
|
$
|
2,727,491
|
$
|
2,722,620
|
$
|
2,642,517
|
||||||||||
|
DEPOSITS
|
||||||||||||||||||||
|
(Dollars In Thousands)
|
December 31,
|
September 30,
|
June 30,
|
March 31,
|
December 31,
|
|||||||||||||||
|
2012
|
2012
|
2012
|
2012
|
2011
|
||||||||||||||||
|
Demand deposits
|
$
|
1,646,756
|
$
|
1,455,568
|
$
|
1,521,194
|
$
|
1,470,938
|
$
|
1,438,513
|
||||||||||
|
Savings deposits
|
831,952
|
837,409
|
822,299
|
801,935
|
757,166
|
|||||||||||||||
|
Certificates and other time deposits of $100,000 or more
|
236,470
|
256,077
|
261,156
|
269,796
|
264,787
|
|||||||||||||||
|
Other certificates and time deposits
|
502,927
|
527,304
|
546,182
|
566,934
|
551,247
|
|||||||||||||||
|
Brokered deposits
|
128,278
|
118,393
|
138,067
|
169,975
|
122,942
|
|||||||||||||||
|
TOTAL DEPOSITS
|
$
|
3,346,383
|
$
|
3,194,751
|
$
|
3,288,898
|
$
|
3,279,578
|
$
|
3,134,655
|
||||||||||