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 24, 2014
Commission File Number 0-17071
FIRST MERCHANTS CORPORATION
(Exact name of registrant as specified in its charter)
INDIANA | 35-1544218 |
(State or other jurisdiction of incorporation) | (IRS Employer Identification No.) |
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:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On April 24, 2014 First Merchants Corporation issued a press release to report its financial results for the first quarter ended March 31, 2014. 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 24, 2014, 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 24, 2014
EXHIBIT INDEX
Exhibit No. Description
99.1 | Press Release, dated April 24, 2014, issued by First Merchants Corporation |
N / E / W / S R / E / L / E / A / S / E
April 24, 2014
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 FIRST QUARTER 2014 EARNINGS PER SHARE AND DIVIDEND INCREASE
First Merchants Corporation (NASDAQ - FRME) has reported first quarter 2014 net income of $13.6 million, compared to $11 million during the same period in 2013. Earnings per share for the period totaled $.38 per share equaling the first quarter of 2013.
Total assets equaled $5.5 billion as of quarter-end and loans were $3.6 billion. The Corporation’s loan portfolio increased, by $737 million, over the past twelve months. Of the increase, $140 million was the result of organic growth and $597 million resulted from the acquisition of CFS Bancorp in November of 2013. The Corporation’s loan-to-deposit ratio is 84 percent and the loan-to-asset ratio is 66 percent.
Michael C. Rechin, President and Chief Executive Officer, stated, “First quarter 2014 results were in line with our expectations and include the successful integration of more than 30,000 new customers onto our core platforms as of February 24th. Rechin also added, “Management was pleased by our results in the month of March, as cost savings identified from our acquisition were fully recognized. The board’s decision to increase the common dividend is reflective of our team's confidence in the company’s earnings prospects.”
Net-interest income totaled $45.9 million for the quarter, and net-interest margin remained strong during the quarter totaling 3.97 percent, as yields on earning assets totaled 4.40 percent and the cost of supporting liabilities totaled .43 percent.
Non-interest income totaled $15.2 million for the quarter, an increase from the first quarter of 2013 total of $13.9 million. Gains on sale of mortgage loans declined during the quarter by $1.7 million reflecting higher rates and the challenges of selling a home in sub-zero temperatures. Non-interest expense totaled $43.1 million for the quarter, an increase of $8.4 million over the prior year. Of the increase in non-interest expense, $1.4 million was non-recurring related to the acquisition, $682,000 from our initial seeding of employee HSA accounts and $669,000 resulting from unusually high levels of snow removal.
The Corporation did not expense any provision during the quarter due to net recoveries of $1.7 million. The allowance for loan losses totaled $69.6 million, or 1.92 percent of total loans and 125 percent of non-accrual loans. Non-performing assets declined by $4.6 million from year-end and now total $77.1 million.
As of March 31, 2014, the Corporation’s total risk-based capital equaled 15.04 percent, Tier 1 common risk-based capital equaled 10.86 percent, and tangible common equity ratio totaled 8.65 percent. The Corporation also increased its dividend through an 8-K filling on April 18, 2014. The quarterly dividend now totals $.08 per share, an increase of sixty percent, due to strong earnings and capital levels.
Mark K. Hardwick, Executive Vice President and Chief Financial Officer stated, “The optimization of our capital levels in the fourth quarter of last year combined with the strength of earnings allowed for the desired flexibility in our dividend level.” Hardwick also added, “Utilizing cash as a component of future acquisitions is also an option that we intend to consider.”
CONFERENCE CALL
First Merchants Corporation will conduct a first quarter earnings conference call and web cast at 2:30 p.m. (ET) on Thursday, April 24, 2014.
To participate, dial (Toll Free) 888-317-6016 and reference First Merchants Corporation's first quarter earnings release. International callers please call +1 412-317-6016. A replay of the call will be available until July 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 10044122.
In order to view the web cast and presentation slides, please go to http://services.choruscall.com/links/frme140424.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).
FIRST MERCHANTS and the Shield Logo are federally registered trademarks of First Merchants Corporation.
* * * *
CONSOLIDATED BALANCE SHEETS | |||||||
(Dollars In Thousands) | March 31, | ||||||
2014 | 2013 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 112,920 | $ | 51,592 | |||
Interest-bearing time deposits | 37,078 | 60,407 | |||||
Investment securities | 1,149,977 | 869,563 | |||||
Mortgage loans held for sale | 6,586 | 26,555 | |||||
Loans | 3,616,627 | 2,879,542 | |||||
Less: Allowance for loan losses | (69,583 | ) | (68,537 | ) | |||
Net loans | 3,547,044 | 2,811,005 | |||||
Premises and equipment | 74,847 | 53,762 | |||||
Federal Reserve and Federal Home Loan Bank stock | 38,990 | 32,777 | |||||
Interest receivable | 18,001 | 15,346 | |||||
Core deposit intangibles and goodwill | 202,175 | 149,142 | |||||
Cash surrender value of life insurance | 165,320 | 126,098 | |||||
Other real estate owned | 21,077 | 13,130 | |||||
Tax asset, deferred and receivable | 50,684 | 27,597 | |||||
Other assets | 28,237 | 15,856 | |||||
TOTAL ASSETS | $ | 5,452,936 | $ | 4,252,830 | |||
LIABILITIES | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 936,741 | $ | 763,965 | |||
Interest-bearing | 3,346,438 | 2,546,843 | |||||
Total Deposits | 4,283,179 | 3,310,808 | |||||
Borrowings: | |||||||
Federal funds purchased | 48,357 | ||||||
Securities sold under repurchase agreements | 137,381 | 161,813 | |||||
Federal Home Loan Bank advances | 170,887 | 93,169 | |||||
Subordinated debentures and term loans | 127,172 | 111,778 | |||||
Total Borrowings | 483,797 | 366,760 | |||||
Interest payable | 3,192 | 1,348 | |||||
Other liabilities | 30,657 | 35,356 | |||||
Total Liabilities | 4,800,825 | 3,714,272 | |||||
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 - 0 and 68,087 shares | 68,087 | ||||||
Cumulative Preferred Stock, $1,000 par value, $1,000 liquidation value: | |||||||
Authorized -- 600 shares | |||||||
Issued and outstanding - 125 shares | 125 | 125 | |||||
Common Stock, $.125 stated value: | |||||||
Authorized -- 50,000,000 shares | |||||||
Issued and outstanding - 36,014,083 and 28,780,609 shares | 4,502 | 3,598 | |||||
Additional paid-in capital | 393,765 | 256,966 | |||||
Retained earnings | 254,735 | 216,530 | |||||
Accumulated other comprehensive loss | (1,016 | ) | (6,748 | ) | |||
Total Stockholders' Equity | 652,111 | 538,558 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 5,452,936 | $ | 4,252,830 | |||
CONSOLIDATED STATEMENTS OF INCOME | Three Months Ended | ||||||
(Dollars In Thousands, Except Per Share Amounts) | March 31, | ||||||
2014 | 2013 | ||||||
INTEREST INCOME | |||||||
Loans receivable: | |||||||
Taxable | $ | 42,025 | $ | 37,159 | |||
Tax-exempt | 61 | 117 | |||||
Investment securities: | |||||||
Taxable | 4,810 | 3,618 | |||||
Tax-exempt | 3,438 | 2,454 | |||||
Deposits with financial institutions | 23 | 19 | |||||
Federal Reserve and Federal Home Loan Bank stock | 652 | 371 | |||||
Total Interest Income | 51,009 | 43,738 | |||||
INTEREST EXPENSE | |||||||
Deposits | 2,549 | 2,891 | |||||
Federal funds purchased | 49 | 11 | |||||
Securities sold under repurchase agreements | 196 | 194 | |||||
Federal Home Loan Bank advances | 682 | 459 | |||||
Subordinated debentures and term loans | 1,641 | 725 | |||||
Total Interest Expense | 5,117 | 4,280 | |||||
NET INTEREST INCOME | 45,892 | 39,458 | |||||
Provision for loan losses | 2,102 | ||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 45,892 | 37,356 | |||||
OTHER INCOME | |||||||
Service charges on deposit accounts | 3,551 | 2,729 | |||||
Fiduciary activities | 2,212 | 2,107 | |||||
Other customer fees | 3,733 | 2,780 | |||||
Commission income | 2,268 | 2,172 | |||||
Earnings on cash surrender value of life insurance | 748 | 700 | |||||
Net gains and fees on sales of loans | 723 | 2,378 | |||||
Net realized gains on sales of available for sale securities | 581 | 248 | |||||
Other income | 1,370 | 763 | |||||
Total Other Income | 15,186 | 13,877 | |||||
OTHER EXPENSES | |||||||
Salaries and employee benefits | 25,301 | 20,791 | |||||
Net occupancy | 3,938 | 2,602 | |||||
Equipment | 2,739 | 1,774 | |||||
Marketing | 769 | 467 | |||||
Outside data processing fees | 1,831 | 1,480 | |||||
Printing and office supplies | 458 | 331 | |||||
Core deposit amortization | 592 | 387 | |||||
FDIC assessments | 1,060 | 744 | |||||
Other real estate owned and credit-related expenses | 1,757 | 1,866 | |||||
Professional and other outside services | 1,379 | 1,659 | |||||
Other expenses | 3,265 | 2,599 | |||||
Total Other Expenses | 43,089 | 34,700 | |||||
INCOME BEFORE INCOME TAX | 17,989 | 16,533 | |||||
Income tax expense | 4,369 | 4,668 | |||||
NET INCOME | 13,620 | 11,865 | |||||
Preferred stock dividends | (857 | ) | |||||
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 13,620 | $ | 11,008 | |||
Per Share Data: | |||||||
Basic Net Income Available to Common Stockholders | $ | 0.38 | $ | 0.38 | |||
Diluted Net Income Available to Common Stockholders | $ | 0.38 | $ | 0.38 | |||
Cash Dividends Paid | $ | 0.05 | $ | 0.03 | |||
Average Diluted Shares Outstanding (in thousands) | 36,261 | 28,971 | |||||
FINANCIAL HIGHLIGHTS | |||||||
(Dollars in thousands) | Three Months Ended | ||||||
March 31, | |||||||
2014 | 2013 | ||||||
NET CHARGE OFF'S | $ | (1,713 | ) | $ | 2,931 | ||
AVERAGE BALANCES: | |||||||
Total Assets | $ | 5,399,688 | $ | 4,248,955 | |||
Total Loans | 3,616,084 | 2,910,116 | |||||
Total Earning Assets | 4,805,665 | 3,843,741 | |||||
Total Deposits | 4,215,681 | 3,316,711 | |||||
Total Stockholders' Equity | 644,899 | 533,797 | |||||
FINANCIAL RATIOS: | |||||||
Return on Average Assets | 1.01 | % | 1.04 | % | |||
Return on Average Stockholders' Equity | 8.45 | 8.25 | |||||
Return on Average Common Stockholders' Equity | 8.45 | 9.47 | |||||
Average Earning Assets to Average Assets | 89.00 | 90.46 | |||||
Allowance for Loan Losses as % of Total Loans | 1.92 | 2.36 | |||||
Net Charge Off's as % of Average Loans (Annualized) | (0.19 | ) | 0.40 | ||||
Average Stockholders' Equity to Average Assets | 11.94 | 12.56 | |||||
Tax Equivalent Yield on Earning Assets | 4.40 | 4.70 | |||||
Cost of Supporting Liabilities | 0.43 | 0.45 | |||||
Net Interest Margin (FTE) on Earning Assets | 3.97 | 4.25 | |||||
Tangible Book Value Per Share | $ | 12.63 | $ | 11.24 | |||
NON-PERFORMING ASSETS | |||||||||||||||||||
(Dollars In Thousands) | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||
2014 | 2013 | 2013 | 2013 | 2013 | |||||||||||||||
Non-Accrual Loans | $ | 55,686 | $ | 56,402 | $ | 34,992 | $ | 38,971 | $ | 46,761 | |||||||||
Renegotiated Loans | 378 | 3,048 | 3,269 | 4,407 | 5,445 | ||||||||||||||
Non-Performing Loans (NPL) | 56,064 | 59,450 | 38,261 | 43,378 | 52,206 | ||||||||||||||
Other Real Estate Owned | 21,077 | 22,246 | 12,052 | 11,765 | 13,130 | ||||||||||||||
Non-Performing Assets (NPA) | 77,141 | 81,696 | 50,313 | 55,143 | 65,336 | ||||||||||||||
90+ Days Delinquent | 1,709 | 1,350 | 837 | 1,072 | 959 | ||||||||||||||
NPAS & 90 Day Delinquent | $ | 78,850 | $ | 83,046 | $ | 51,150 | $ | 56,215 | $ | 66,295 | |||||||||
Loan Loss Reserve | $ | 69,583 | $ | 67,870 | $ | 66,224 | $ | 68,202 | $ | 68,537 | |||||||||
Quarterly Net Charge-offs | (1,713 | ) | (630 | ) | 3,511 | 2,332 | 2,931 | ||||||||||||
NPAs / Actual Assets % | 1.41 | % | 1.50 | % | 1.16 | % | 1.27 | % | 1.54 | % | |||||||||
NPAs & 90 Day / Actual Assets % | 1.45 | % | 1.53 | % | 1.18 | % | 1.30 | % | 1.56 | % | |||||||||
NPAs / Actual Loans and OREO % | 2.12 | % | 2.23 | % | 1.71 | % | 1.87 | % | 2.24 | % | |||||||||
Loan Loss Reserves / Actual Loans (%) | 1.92 | % | 1.87 | % | 2.26 | % | 2.32 | % | 2.36 | % | |||||||||
Net Charge Off's as % of Average Loans (Annualized) | (0.19 | )% | (0.08 | )% | 0.48 | % | 0.32 | % | 0.40 | % | |||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||||||||||
(Dollars In Thousands) | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||
2014 | 2013 | 2013 | 2013 | 2013 | |||||||||||||||
ASSETS | |||||||||||||||||||
Cash and cash equivalents | $ | 112,920 | $ | 109,434 | $ | 92,341 | $ | 69,404 | $ | 51,592 | |||||||||
Interest-bearing time deposits | 37,078 | 55,069 | 18,875 | 59,898 | 60,407 | ||||||||||||||
Investment securities | 1,149,977 | 1,095,579 | 914,135 | 908,992 | 869,563 | ||||||||||||||
Mortgage loans held for sale | 6,586 | 5,331 | 5,312 | 14,531 | 26,555 | ||||||||||||||
Loans | 3,616,627 | 3,632,409 | 2,925,457 | 2,920,080 | 2,879,542 | ||||||||||||||
Less: Allowance for loan losses | (69,583 | ) | (67,870 | ) | (66,224 | ) | (68,202 | ) | (68,537 | ) | |||||||||
Net loans | 3,547,044 | 3,564,539 | 2,859,233 | 2,851,878 | 2,811,005 | ||||||||||||||
Premises and equipment | 74,847 | 74,454 | 54,386 | 54,165 | 53,762 | ||||||||||||||
Federal Reserve and Federal Home Loan Bank stock | 38,990 | 38,990 | 32,790 | 32,790 | 32,777 | ||||||||||||||
Interest receivable | 18,001 | 18,672 | 16,171 | 15,186 | 15,346 | ||||||||||||||
Core deposit intangibles and goodwill | 202,175 | 202,766 | 148,376 | 148,759 | 149,142 | ||||||||||||||
Cash surrender value of life insurance | 165,320 | 164,571 | 127,322 | 126,710 | 126,098 | ||||||||||||||
Other real estate owned | 21,077 | 22,246 | 12,052 | 11,765 | 13,130 | ||||||||||||||
Tax asset, deferred and receivable | 50,684 | 56,614 | 31,385 | 30,959 | 27,597 | ||||||||||||||
Other assets | 28,237 | 28,997 | 13,533 | 13,227 | 15,856 | ||||||||||||||
TOTAL ASSETS | $ | 5,452,936 | $ | 5,437,262 | $ | 4,325,911 | $ | 4,338,264 | $ | 4,252,830 | |||||||||
LIABILITIES | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Noninterest-bearing | 936,741 | 930,772 | 790,174 | 741,095 | 763,965 | ||||||||||||||
Interest-bearing | 3,346,438 | 3,300,696 | 2,465,672 | 2,591,698 | 2,546,843 | ||||||||||||||
Total Deposits | 4,283,179 | 4,231,468 | 3,255,846 | 3,332,793 | 3,310,808 | ||||||||||||||
Borrowings: | |||||||||||||||||||
Federal funds purchased | 48,357 | 125,645 | 115,938 | 57,085 | |||||||||||||||
Securities sold under repurchase agreements | 137,381 | 148,672 | 123,935 | 161,779 | 161,813 | ||||||||||||||
Federal Home Loan Bank advances | 170,887 | 122,140 | 172,292 | 92,743 | 93,169 | ||||||||||||||
Subordinated debentures and term loans | 127,172 | 126,807 | 111,849 | 111,778 | 111,778 | ||||||||||||||
Total Borrowings | 483,797 | 523,264 | 524,014 | 423,385 | 366,760 | ||||||||||||||
Interest payable | 3,192 | 1,771 | 1,155 | 1,150 | 1,348 | ||||||||||||||
Other liabilities | 30,657 | 45,836 | 31,427 | 41,643 | 35,356 | ||||||||||||||
Total Liabilities | 4,800,825 | 4,802,339 | 3,812,442 | 3,798,971 | 3,714,272 | ||||||||||||||
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 | 34,043 | 68,087 | 68,087 | ||||||||||||||||
Cumulative Preferred Stock, $1,000 par value, $1,000 liquidation value: | |||||||||||||||||||
Authorized -- 600 shares | |||||||||||||||||||
Issued and outstanding | 125 | 125 | 125 | 125 | 125 | ||||||||||||||
Common Stock, $.125 stated value: | |||||||||||||||||||
Authorized -- 50,000,000 shares | |||||||||||||||||||
Issued and outstanding | 4,502 | 4,490 | 3,603 | 3,600 | 3,598 | ||||||||||||||
Additional paid-in capital | 393,765 | 393,783 | 258,350 | 257,626 | 256,966 | ||||||||||||||
Retained earnings | 254,735 | 242,935 | 233,546 | 225,034 | 216,530 | ||||||||||||||
Accumulated other comprehensive loss | (1,016 | ) | (6,410 | ) | (16,198 | ) | (15,179 | ) | (6,748 | ) | |||||||||
Total Stockholders' Equity | 652,111 | 634,923 | 513,469 | 539,293 | 538,558 | ||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 5,452,936 | $ | 5,437,262 | $ | 4,325,911 | $ | 4,338,264 | $ | 4,252,830 | |||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||
(Dollars In Thousands, Except Per Share Amounts) | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||
2014 | 2013 | 2013 | 2013 | 2013 | |||||||||||||||
INTEREST INCOME | |||||||||||||||||||
Loans receivable: | |||||||||||||||||||
Taxable | $ | 42,025 | $ | 38,027 | $ | 33,548 | $ | 34,018 | $ | 37,159 | |||||||||
Tax-exempt | 61 | 78 | 85 | 113 | 117 | ||||||||||||||
Investment securities: | |||||||||||||||||||
Taxable | 4,810 | 4,143 | 3,876 | 3,577 | 3,618 | ||||||||||||||
Tax-exempt | 3,438 | 3,020 | 2,840 | 2,515 | 2,454 | ||||||||||||||
Deposits with financial institutions | 23 | 59 | 18 | 62 | 19 | ||||||||||||||
Federal Reserve and Federal Home Loan Bank stock | 652 | 380 | 369 | 368 | 371 | ||||||||||||||
Total Interest Income | 51,009 | 45,707 | 40,736 | 40,653 | 43,738 | ||||||||||||||
INTEREST EXPENSE | |||||||||||||||||||
Deposits | 2,549 | 2,350 | 2,213 | 2,599 | 2,891 | ||||||||||||||
Federal funds purchased | 49 | 18 | 72 | 1 | 11 | ||||||||||||||
Securities sold under repurchase agreements | 196 | 193 | 192 | 208 | 194 | ||||||||||||||
Federal Home Loan Bank advances | 682 | 669 | 506 | 462 | 459 | ||||||||||||||
Subordinated debentures and term loans | 1,641 | 1,342 | 731 | 733 | 725 | ||||||||||||||
Total Interest Expense | 5,117 | 4,572 | 3,714 | 4,003 | 4,280 | ||||||||||||||
NET INTEREST INCOME | 45,892 | 41,135 | 37,022 | 36,650 | 39,458 | ||||||||||||||
Provision for loan losses | 1,016 | 1,533 | 1,997 | 2,102 | |||||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 45,892 | 40,119 | 35,489 | 34,653 | 37,356 | ||||||||||||||
OTHER INCOME | |||||||||||||||||||
Service charges on deposit accounts | 3,551 | 3,639 | 3,120 | 2,912 | 2,729 | ||||||||||||||
Fiduciary activities | 2,212 | 2,237 | 1,986 | 2,264 | 2,107 | ||||||||||||||
Other customer fees | 3,733 | 3,371 | 2,899 | 2,816 | 2,780 | ||||||||||||||
Commission income | 2,268 | 1,585 | 1,636 | 1,748 | 2,172 | ||||||||||||||
Earnings on cash surrender value of life insurance | 748 | 692 | 611 | 610 | 700 | ||||||||||||||
Net gains and fees on sales of loans | 723 | 1,003 | 1,673 | 2,457 | 2,378 | ||||||||||||||
Net realized gains on sales of available for sale securities | 581 | 239 | 248 | ||||||||||||||||
Other income | 1,370 | 2,546 | (125 | ) | 1,013 | 763 | |||||||||||||
Total Other Income | 15,186 | 15,073 | 11,800 | 14,059 | 13,877 | ||||||||||||||
OTHER EXPENSES | |||||||||||||||||||
Salaries and employee benefits | 25,301 | 23,470 | 20,616 | 20,536 | 20,791 | ||||||||||||||
Net occupancy | 3,938 | 2,992 | 2,430 | 2,267 | 2,602 | ||||||||||||||
Equipment | 2,739 | 2,369 | 1,852 | 1,742 | 1,774 | ||||||||||||||
Marketing | 769 | 675 | 559 | 535 | 467 | ||||||||||||||
Outside data processing fees | 1,831 | 1,205 | 1,515 | 1,391 | 1,480 | ||||||||||||||
Printing and office supplies | 458 | 378 | 320 | 311 | 331 | ||||||||||||||
Core deposit amortization | 592 | 496 | 383 | 383 | 387 | ||||||||||||||
FDIC assessments | 1,060 | 767 | 677 | 674 | 744 | ||||||||||||||
Other real estate owned and credit-related expenses | 1,757 | 1,668 | 1,648 | 1,479 | 1,866 | ||||||||||||||
Professional and other outside services | 1,379 | 3,361 | 1,444 | 1,833 | 1,659 | ||||||||||||||
Other expenses | 3,265 | 3,177 | 2,775 | 2,591 | 2,599 | ||||||||||||||
Total Other Expenses | 43,089 | 40,558 | 34,219 | 33,742 | 34,700 | ||||||||||||||
INCOME BEFORE INCOME TAX | 17,989 | 14,634 | 13,070 | 14,970 | 16,533 | ||||||||||||||
Income tax expense | 4,369 | 3,187 | 2,667 | 4,155 | 4,668 | ||||||||||||||
NET INCOME | 13,620 | 11,447 | 10,403 | 10,815 | 11,865 | ||||||||||||||
Preferred stock dividends | (241 | ) | (430 | ) | (852 | ) | (857 | ) | |||||||||||
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 13,620 | $ | 11,206 | $ | 9,973 | $ | 9,963 | $ | 11,008 | |||||||||
Per Share Data: | |||||||||||||||||||
Basic Net Income Available to Common Stockholders | $ | 0.38 | $ | 0.34 | $ | 0.35 | $ | 0.35 | $ | 0.38 | |||||||||
Diluted Net Income Available to Common Stockholders | $ | 0.38 | $ | 0.34 | $ | 0.35 | $ | 0.34 | $ | 0.38 | |||||||||
Cash Dividends Paid | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.03 | |||||||||
Average Diluted Shares Outstanding (in thousands) | 36,261 | 32,913 | 29,081 | 29,024 | 28,971 | ||||||||||||||
FINANCIAL RATIOS: | |||||||||||||||||||
Return on Average Assets | 1.01 | % | 0.91 | % | 0.93 | % | 0.92 | % | 1.04 | % | |||||||||
Return on Average Stockholders' Equity | 8.45 | 7.78 | 7.85 | 7.34 | 8.25 | ||||||||||||||
Return on Average Common Stockholders' Equity | 8.45 | 8.05 | 8.42 | 8.40 | 9.47 | ||||||||||||||
Average Earning Assets to Average Assets | 89.00 | 89.08 | 90.71 | 90.59 | 90.46 | ||||||||||||||
Allowance for Loan Losses as % of Total Loans | 1.92 | 1.87 | 2.26 | 2.32 | 2.36 | ||||||||||||||
Net Charge Off's as % of Average Loans (Annualized) | (0.19 | ) | (0.08 | ) | 0.48 | 0.32 | 0.40 | ||||||||||||
Average Stockholders' Equity to Average Assets | 11.94 | 11.64 | 11.85 | 12.54 | 12.56 | ||||||||||||||
Tax Equivalent Yield on Earning Assets | 4.40 | 4.30 | 4.35 | 4.29 | 4.70 | ||||||||||||||
Cost of Supporting Liabilities | 0.43 | 0.41 | 0.38 | 0.41 | 0.45 | ||||||||||||||
Net Interest Margin (FTE) on Earning Assets | 3.97 | 3.89 | 3.97 | 3.88 | 4.25 | ||||||||||||||
Tangible Book Value Per Share | $ | 12.63 | $ | 12.17 | $ | 11.56 | $ | 11.27 | $ | 11.24 | |||||||||
LOANS | |||||||||||||||||||
(Dollars In Thousands) | March 31 | December 31, | September 30, | June 30, | March 31, | ||||||||||||||
2014 | 2013 | 2013 | 2013 | 2013 | |||||||||||||||
Commercial and industrial loans | $ | 787,390 | $ | 761,705 | $ | 652,356 | $ | 657,764 | $ | 637,952 | |||||||||
Agricultural production financing and other loans to farmers | 99,226 | 114,348 | 98,489 | 105,175 | 104,284 | ||||||||||||||
Real estate loans: | |||||||||||||||||||
Construction | 155,117 | 177,082 | 149,875 | 101,909 | 75,877 | ||||||||||||||
Commercial and farmland | 1,606,735 | 1,611,809 | 1,264,180 | 1,272,761 | 1,280,611 | ||||||||||||||
Residential | 626,202 | 616,385 | 452,277 | 460,108 | 467,629 | ||||||||||||||
Home Equity | 256,790 | 255,223 | 206,816 | 203,788 | 201,767 | ||||||||||||||
Individuals' loans for household and other personal expenditures | 61,742 | 69,783 | 70,380 | 79,258 | 73,314 | ||||||||||||||
Lease financing receivables, net of unearned income | 1,378 | 1,545 | 1,815 | 1,828 | 2,013 | ||||||||||||||
Other loans | 22,047 | 24,529 | 29,269 | 37,489 | 36,095 | ||||||||||||||
Loans | 3,616,627 | 3,632,409 | 2,925,457 | 2,920,080 | 2,879,542 | ||||||||||||||
Allowance for loan losses | (69,583 | ) | (67,870 | ) | (66,224 | ) | (68,202 | ) | (68,537 | ) | |||||||||
NET LOANS | $ | 3,547,044 | $ | 3,564,539 | $ | 2,859,233 | $ | 2,851,878 | $ | 2,811,005 | |||||||||
DEPOSITS | |||||||||||||||||||
(Dollars In Thousands) | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||
2014 | 2013 | 2013 | 2013 | 2013 | |||||||||||||||
Demand deposits | $ | 1,966,895 | $ | 2,018,650 | $ | 1,610,662 | $ | 1,648,712 | $ | 1,590,709 | |||||||||
Savings deposits | 1,282,702 | 1,257,994 | 937,521 | 916,481 | 891,061 | ||||||||||||||
Certificates and other time deposits of $100,000 or more | 265,683 | 272,660 | 190,866 | 205,467 | 224,505 | ||||||||||||||
Other certificates and time deposits | 568,160 | 595,110 | 422,151 | 448,885 | 481,446 | ||||||||||||||
Brokered deposits | 199,739 | 87,054 | 94,646 | 113,248 | 123,087 | ||||||||||||||
TOTAL DEPOSITS | $ | 4,283,179 | $ | 4,231,468 | $ | 3,255,846 | $ | 3,332,793 | $ | 3,310,808 | |||||||||
CONSOLIDATED BALANCE SHEETS (AVERAGE) | |||||||||||||||||||
(Dollars In Thousands) | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||
2014 | 2013 | 2013 | 2013 | 2013 | |||||||||||||||
ASSETS | |||||||||||||||||||
Cash and cash equivalents | $ | 95,255 | $ | 91,121 | $ | 69,974 | $ | 69,045 | $ | 62,221 | |||||||||
Interest-bearing time deposits | 44,313 | 116,839 | 24,497 | 109,522 | 48,807 | ||||||||||||||
Investment securities | 1,109,914 | 963,478 | 908,419 | 880,241 | 865,255 | ||||||||||||||
Mortgage loans held for sale | 4,936 | 5,069 | 11,063 | 17,489 | 31,271 | ||||||||||||||
Loans | 3,611,148 | 3,287,924 | 2,907,144 | 2,892,199 | 2,878,845 | ||||||||||||||
Less: Allowance for loan losses | (68,806 | ) | (66,949 | ) | (69,117 | ) | (69,296 | ) | (69,890 | ) | |||||||||
Net loans | 3,542,342 | 3,220,975 | 2,838,027 | 2,822,903 | 2,808,955 | ||||||||||||||
Premises and equipment | 74,631 | 66,383 | 54,757 | 53,896 | 53,763 | ||||||||||||||
Federal Reserve and Federal Home Loan Bank stock | 38,990 | 36,095 | 32,790 | 32,789 | 32,782 | ||||||||||||||
Interest receivable | 17,118 | 17,359 | 14,026 | 13,864 | 13,885 | ||||||||||||||
Core deposit intangibles and goodwill | 202,528 | 177,518 | 148,571 | 148,954 | 149,340 | ||||||||||||||
Cash surrender value of life insurance | 164,842 | 152,972 | 126,922 | 126,315 | 125,646 | ||||||||||||||
Other real estate owned | 21,867 | 16,557 | 11,669 | 12,202 | 14,073 | ||||||||||||||
Tax asset, deferred and receivable | 54,753 | 49,525 | 32,484 | 27,676 | 28,605 | ||||||||||||||
Other assets | 28,199 | 36,383 | 13,783 | 14,683 | 14,352 | ||||||||||||||
TOTAL ASSETS | $ | 5,399,688 | $ | 4,950,274 | $ | 4,286,982 | $ | 4,329,579 | $ | 4,248,955 | |||||||||
LIABILITIES | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Noninterest-bearing | 915,635 | 883,044 | 775,545 | 753,695 | 776,527 | ||||||||||||||
Interest-bearing | 3,300,046 | 2,977,408 | 2,519,824 | 2,632,227 | 2,540,184 | ||||||||||||||
Total Deposits | 4,215,681 | 3,860,452 | 3,295,369 | 3,385,922 | 3,316,711 | ||||||||||||||
Borrowings: | |||||||||||||||||||
Federal funds purchased | 49,140 | 21,367 | 68,236 | 2,267 | 14,757 | ||||||||||||||
Securities sold under repurchase agreements | 147,492 | 135,697 | 126,938 | 158,377 | 139,780 | ||||||||||||||
Federal Home Loan Bank advances | 170,125 | 149,278 | 139,941 | 93,014 | 93,916 | ||||||||||||||
Subordinated debentures and term loans | 126,820 | 121,795 | 111,779 | 111,778 | 112,149 | ||||||||||||||
Total Borrowings | 493,577 | 428,137 | 446,894 | 365,436 | 360,602 | ||||||||||||||
Interest payable | 3,047 | 1,811 | 1,592 | 1,808 | 2,074 | ||||||||||||||
Other liabilities | 42,484 | 83,717 | 35,093 | 33,492 | 35,771 | ||||||||||||||
Total Liabilities | 4,754,789 | 4,374,117 | 3,778,948 | 3,786,658 | 3,715,158 | ||||||||||||||
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 | 19,242 | 34,413 | 68,087 | 68,591 | |||||||||||||||
Cumulative Preferred Stock, $1,000 par value, $1,000 liquidation value: | |||||||||||||||||||
Authorized -- 600 shares | |||||||||||||||||||
Issued and outstanding | 125 | 125 | 125 | 125 | 125 | ||||||||||||||
Common Stock, $.125 stated value: | |||||||||||||||||||
Authorized -- 50,000,000 shares | |||||||||||||||||||
Issued and outstanding | 4,495 | 4,075 | 3,601 | 3,598 | 3,587 | ||||||||||||||
Additional paid-in capital | 393,590 | 323,196 | 257,847 | 257,147 | 256,682 | ||||||||||||||
Retained earnings | 249,978 | 245,083 | 230,077 | 221,606 | 210,550 | ||||||||||||||
Accumulated other comprehensive loss | (3,289 | ) | (15,564 | ) | (18,029 | ) | (7,642 | ) | (5,738 | ) | |||||||||
Total Stockholders' Equity | 644,899 | 576,157 | 508,034 | 542,921 | 533,797 | ||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 5,399,688 | $ | 4,950,274 | $ | 4,286,982 | $ | 4,329,579 | $ | 4,248,955 | |||||||||