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f8k1Q2015earningsrelease

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 23, 2015

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 23, 2015 First Merchants Corporation issued a press release to report its financial results for the first quarter ended March 31, 2015. 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.

Exhibit 99.1 Press Release, dated April 23, 2015, 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 23, 2015

EXHIBIT INDEX


Exhibit No.	Description


99.1	Press Release, dated April 23, 2015, issued by First Merchants Corporation

1Q15 Earnings Release

N / E / W / S R / E / L / E / A / S / E

April 23, 2015

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 2015 EARNINGS PER SHARE INCREASE OF 13 PERCENT

First Merchants Corporation (NASDAQ - FRME) has reported first quarter 2015 net income of $16.2 million, compared to $13.6 million during the same period in 2014. Earnings per share for the period totaled $.43 per share, an increase of $.05 per share, or 13.2 percent over the first quarter of 2014.

Total assets equaled $5.9 billion as of quarter-end and loans were $4.0 billion. The Corporation’s loan portfolio increased $349 million during the past twelve months. Of the increase, $204 million, or 5.6 percent, was the result of organic growth and $145 million resulted from the acquisition of Community Bank of Noblesville in November 2014.

Michael C. Rechin, President and Chief Executive Officer, stated, “First quarter 2015 results continue to represent effective execution of our core banking strategy. We are focused on growing organically while maintaining an emphasis on efficiency and expense control in this low interest rate environment.” Rechin also added, “Management was pleased to close our acquisition of Cooper State Bank on April 17^th and confident about completing our integration of Community Bank of Noblesville this coming weekend.”

Net-interest income totaled $47 million for the quarter, and net-interest margin remained strong during the quarter totaling 3.78 percent, as yields on earning assets totaled 4.24 percent and the cost of supporting liabilities totaled .46 percent. When adjusted down for fair value accretion, net-interest margin totaled 3.61 percent for the quarter, 22 basis points less than the first quarter of 2014 total of 3.83 percent.

Non-interest income totaled $16.2 million for the quarter, an increase from first quarter of 2014 total of $15.4 million. Gains on sale of mortgage loans increased during the quarter by $766,000 reflecting lower rates. Non-interest expense totaled $41.2 million for the quarter, a decline of $1.9 million from the prior year. Of the decline in non-interest expense, salary and benefit expense accounted for $760,000 and other real estate owned and foreclosure expense accounted for $528,000.

The Corporation did not expense a provision for loan losses during the quarter despite net charge-offs of $1.2 million due to improvements in non-performing loans of $5.1 million, which now total $45.6 million. The allowance for loan losses totaled $62.8 million, or 1.58 percent of total loans and 1.87 percent of non-purchased loans. Non-performing assets declined by $5.4 million from year-end and now total $64.7 million.

As of March 31, 2015, the Corporation’s total risk-based capital ratio equaled 15.12 percent, common equity tier 1 capital ratio equaled 11.37 percent, and tangible common equity ratio totaled 9.31 percent.

CONFERENCE CALL

First Merchants Corporation will conduct a 1st quarter earnings conference call and web cast at 2:30 p.m. (ET) on Thursday, April 23, 2015.

To participate, dial (Toll Free) 877-507-0578 and reference First Merchants Corporation's first quarter earnings release. International callers please call +1 412-317-1073. A replay of the call will be available until May 24, 2015. 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 10062979.

In order to view the web cast and presentation slides, please go to http://services.choruscall.com/links/frme150423.html during the time of the call. A replay of the web cast will be available until April 23, 2016.

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,
	2015			2014
ASSETS
Cash and cash equivalents	$	89,243		$	112,920
Interest-bearing time deposits	83,228			37,078
Investment securities	1,189,473			1,149,977
Loans held for sale	6,392			6,586
Loans	3,965,532			3,616,627
Less: Allowance for loan losses	(62,801		)	(69,583		)
Net loans	3,902,731			3,547,044
Premises and equipment	77,468			74,847
Federal Reserve and Federal Home Loan Bank stock	41,273			38,990
Interest receivable	19,557			18,001
Core deposit intangibles and goodwill	218,034			202,175
Cash surrender value of life insurance	170,172			165,320
Other real estate owned	19,073			21,077
Tax asset, deferred and receivable	38,695			50,684
Other assets	22,182			28,237
TOTAL ASSETS	$	5,877,521		$	5,452,936
LIABILITIES
Deposits:
Noninterest-bearing	$	1,100,397		$	936,741
Interest-bearing	3,547,678			3,346,438
Total Deposits	4,648,075			4,283,179
Borrowings:
Federal funds purchased				48,357
Securities sold under repurchase agreements	134,023			137,381
Federal Home Loan Bank advances	166,326			170,887
Subordinated debentures and term loans	126,875			127,172
Total Borrowings	427,224			483,797
Interest payable	3,685			3,192
Other liabilities	58,879			30,657
Total Liabilities	5,137,863			4,800,825
STOCKHOLDERS' EQUITY
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 - 37,781,488 and 36,014,083 shares	4,723			4,502
Additional paid-in capital	431,199			393,765
Retained earnings	305,526			254,735
Accumulated other comprehensive loss	(1,915		)	(1,016		)
Total Stockholders' Equity	739,658			652,111
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	5,877,521		$	5,452,936



CONSOLIDATED STATEMENTS OF INCOME	Three Months Ended
(Dollars In Thousands, Except Per Share Amounts)	March 31,
	2015		2014
INTEREST INCOME
Loans receivable:
Taxable	$	43,551	$	42,025
Tax-exempt	248		61
Investment securities:
Taxable	4,723		4,810
Tax-exempt	3,835		3,438
Deposits with financial institutions	37		23
Federal Reserve and Federal Home Loan Bank stock	550		652
Total Interest Income	52,944		51,009
INTEREST EXPENSE
Deposits	3,516		2,549
Federal funds purchased	23		49
Securities sold under repurchase agreements	78		196
Federal Home Loan Bank advances	691		682
Subordinated debentures and term loans	1,660		1,641
Total Interest Expense	5,968		5,117
NET INTEREST INCOME	46,976		45,892
Provision for loan losses
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	46,976		45,892
OTHER INCOME
Service charges on deposit accounts	3,548		3,551
Fiduciary activities	2,507		2,212
Other customer fees	3,667		3,733
Commission income	2,328		2,268
Earnings on cash surrender value of life insurance	747		748
Net gains and fees on sales of loans	1,489		723
Net realized gains on sales of available for sale securities	1,025		581
Other income	921		1,618
Total Other Income	16,232		15,434
OTHER EXPENSES
Salaries and employee benefits	24,541		25,301
Net occupancy	3,790		3,938
Equipment	2,566		2,739
Marketing	780		769
Outside data processing fees	1,717		1,831
Printing and office supplies	364		458
Core deposit amortization	721		592
FDIC assessments	863		1,060
Other real estate owned and foreclosure expenses	1,229		1,757
Professional and other outside services	1,491		1,379
Other expenses	3,140		3,265
Total Other Expenses	41,202		43,089
INCOME BEFORE INCOME TAX	22,006		18,237
Income tax expense	5,834		4,617
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	16,172	$	13,620
Per Share Data:
Basic Net Income Available to Common Stockholders	$	0.43	$	0.38
Diluted Net Income Available to Common Stockholders	$	0.43	$	0.38
Cash Dividends Paid	$	0.08	$	0.05
Average Diluted Shares Outstanding (in thousands)	38,000		36,261



FINANCIAL HIGHLIGHTS
(Dollars in thousands)	Three Months Ended
	March 31,
	2015			2014
NET CHARGE OFF'S	$	1,163		$	(1,713	)

AVERAGE BALANCES:
Total Assets	$	5,821,074		$	5,399,688
Total Loans	3,936,814			3,616,084
Total Earning Assets	5,204,981			4,805,665
Total Deposits	4,605,138			4,215,681
Total Stockholders' Equity	734,511			644,899

FINANCIAL RATIOS:
Return on Average Assets	1.11		%	1.01		%
Return on Average Stockholders' Equity	8.81			8.45
Return on Average Common Stockholders' Equity	8.81			8.45
Average Earning Assets to Average Assets	89.42			89.00
Allowance for Loan Losses as % of Total Loans	1.58			1.92
Net Charge Off's as % of Average Loans (Annualized)	0.12			(0.19		)
Average Stockholders' Equity to Average Assets	12.62			11.94
Tax Equivalent Yield on Earning Assets	4.24			4.40
Cost of Supporting Liabilities	0.46			0.43
Net Interest Margin (FTE) on Earning Assets	3.78			3.97
Tangible Book Value Per Share	$	13.96		$	12.63



NON-PERFORMING ASSETS
(Dollars In Thousands)	March 31,			December 31,			September 30,			June 30,			March 31,
	2015			2014			2014			2014			2014
Non-Accrual Loans	$	44,321		$	48,789		$	49,104		$	51,289		$	55,686
Renegotiated Loans	1,326			1,992			1,171			1,359			378
Non-Performing Loans (NPL)	45,647			50,781			50,275			52,648			56,064
Other Real Estate Owned	19,073			19,293			14,540			18,621			21,077
Non-Performing Assets (NPA)	64,720			70,074			64,815			71,269			77,141
90+ Days Delinquent	1,655			4,663			831			1,135			1,709
NPAs & 90 Day Delinquent	$	66,375		$	74,737		$	65,646		$	72,404		$	78,850

Loan Loss Reserve	$	62,801		$	63,964		$	65,596		$	68,367		$	69,583
Quarterly Net Charge-off's	1,163			2,592			4,371			1,216			(1,713		)
NPAs / Actual Assets %	1.10		%	1.20		%	1.16		%	1.27		%	1.41		%
NPAs & 90 Day / Actual Assets %	1.13		%	1.28		%	1.17		%	1.29		%	1.45		%
NPAs / Actual Loans and OREO %	1.62		%	1.77		%	1.71		%	1.90		%	2.12		%
Loan Loss Reserves / Actual Loans (%)	1.58		%	1.63		%	1.74		%	1.83		%	1.92		%
Net Charge Off's as % of Average Loans (Annualized)	0.12		%	0.27		%	0.47		%	0.13		%	(0.19		)%



CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)	March 31,			December 31,			September 30,			June 30,			March 31,
	2015			2014			2014			2014			2014
ASSETS
Cash and cash equivalents	$	89,243		$	118,616		$	74,237		$	115,891		$	112,920
Interest-bearing time deposits	83,228			47,520			24,171			27,856			37,078
Investment securities	1,189,473			1,180,631			1,189,814			1,214,087			1,149,977
Loans held for sale	6,392			7,235			6,423			7,370			6,586
Loans	3,965,532			3,924,865			3,772,467			3,722,733			3,616,627
Less: Allowance for loan losses	(62,801		)	(63,964		)	(65,596		)	(68,367		)	(69,583		)
Net loans	3,902,731			3,860,901			3,706,871			3,654,366			3,547,044
Premises and equipment	77,468			77,691			74,105			74,856			74,847
Federal Reserve and Federal Home Loan Bank stock	41,273			41,353			43,127			43,127			38,990
Interest receivable	19,557			19,984			19,455			18,341			18,001
Core deposit intangibles and goodwill	218,034			218,755			200,991			201,583			202,175
Cash surrender value of life insurance	170,172			169,424			165,423			165,974			165,320
Other real estate owned	19,073			19,293			14,540			18,621			21,077
Tax asset, deferred and receivable	38,695			41,960			41,131			44,622			50,684
Other assets	22,182			20,764			31,095			28,426			28,237
TOTAL ASSETS	$	5,877,521		$	5,824,127		$	5,591,383		$	5,615,120		$	5,452,936
LIABILITIES
Deposits:
Noninterest-bearing	1,100,397			1,070,859			939,540			917,825			936,741
Interest-bearing	3,547,678			3,569,835			3,370,583			3,411,785			3,346,438
Total Deposits	4,648,075			4,640,694			4,310,123			4,329,610			4,283,179
Borrowings:
Federal funds purchased				15,381			61,428			100,000			48,357
Securities sold under repurchase agreements	134,023			124,539			117,892			133,137			137,381
Federal Home Loan Bank advances	166,326			145,264			255,423			220,765			170,887
Subordinated debentures and term loans	126,875			126,810			126,874			126,874			127,172
Total Borrowings	427,224			411,994			561,617			580,776			483,797
Interest payable	3,685			3,201			3,819			2,489			3,192
Other liabilities	58,879			41,411			31,271			31,649			30,657
Total Liabilities	5,137,863			5,097,300			4,906,830			4,944,524			4,800,825
STOCKHOLDERS' EQUITY
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	4,723			4,709			4,509			4,507			4,502
Additional paid-in capital	431,199			431,220			395,582			394,774			393,765
Retained earnings	305,526			292,403			280,187			266,980			254,735
Accumulated other comprehensive income (loss)	(1,915		)	(1,630		)	4,150			4,210			(1,016		)
Total Stockholders' Equity	739,658			726,827			684,553			670,596			652,111
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	5,877,521		$	5,824,127		$	5,591,383		$	5,615,120		$	5,452,936



CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands, Except Per Share Amounts)	March 31,			December 31,			September 30,			June 30,			March 31,
	2015			2014			2014			2014			2014
INTEREST INCOME
Loans receivable:
Taxable	$	43,551		$	43,710		$	43,981		$	42,323		$	42,025
Tax-exempt	248			147			61			58			61
Investment securities:
Taxable	4,723			4,980			5,046			5,046			4,810
Tax-exempt	3,835			3,692			3,683			3,570			3,438
Deposits with financial institutions	37			48			18			35			23
Federal Reserve and Federal Home Loan Bank stock	550			476			501			495			652
Total Interest Income	52,944			53,053			53,290			51,527			51,009
INTEREST EXPENSE
Deposits	3,516			3,402			2,853			2,874			2,549
Federal funds purchased	23			3			102			23			49
Securities sold under repurchase agreements	78			72			74			187			196
Federal Home Loan Bank advances	691			750			734			676			682
Subordinated debentures and term loans	1,660			1,666			1,661			1,648			1,641
Total Interest Expense	5,968			5,893			5,424			5,408			5,117
NET INTEREST INCOME	46,976			47,160			47,866			46,119			45,892
Provision for loan losses				960			1,600
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	46,976			46,200			46,266			46,119			45,892
OTHER INCOME
Service charges on deposit accounts	3,548			3,979			4,119			4,098			3,551
Fiduciary activities	2,507			2,242			2,152			2,360			2,212
Other customer fees	3,667			3,926			3,991			4,049			3,733
Commission income	2,328			1,534			1,723			1,886			2,268
Earnings on cash surrender value of life insurance	747			734			1,524			653			748
Net gains and fees on sales of loans	1,489			1,559			1,458			1,159			723
Net realized gains on sales of available for sale securities	1,025			1,246			910			844			581
Other income	921			1,155			2,535			1,130			1,618
Total Other Income	16,232			16,375			18,412			16,179			15,434
OTHER EXPENSES
Salaries and employee benefits	24,541			23,595			24,173			23,430			25,301
Net occupancy	3,790			3,288			3,401			3,204			3,938
Equipment	2,566			2,315			2,187			2,096			2,739
Marketing	780			836			1,070			789			769
Outside data processing fees	1,717			1,592			1,853			2,039			1,831
Printing and office supplies	364			364			350			393			458
Core deposit amortization	721			669			592			592			592
FDIC assessments	863			895			920			863			1,060
Other real estate owned and foreclosure expenses	1,229			1,055			2,618			2,613			1,757
Professional and other outside services	1,491			3,633			1,573			1,531			1,379
Other expenses	3,140			3,435			3,839			3,700			3,265
Total Other Expenses	41,202			41,677			42,576			41,250			43,089
INCOME BEFORE INCOME TAX	22,006			20,898			22,102			21,048			18,237
Income tax expense	5,834			5,638			5,980			5,888			4,617
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	16,172		$	15,260		$	16,122		$	15,160		$	13,620

Per Share Data:
Basic Net Income Available to Common Stockholders	$	0.43		$	0.41		$	0.45		$	0.42		$	0.38
Diluted Net Income Available to Common Stockholders	$	0.43		$	0.41		$	0.45		$	0.41		$	0.38
Cash Dividends Paid	$	0.08		$	0.08		$	0.08		$	0.08		$	0.05
Average Diluted Shares Outstanding (in thousands)	38,000			37,323			36,329			36,294			36,261
FINANCIAL RATIOS:
Return on Average Assets	1.11		%	1.06		%	1.16		%	1.10		%	1.01		%
Return on Average Stockholders' Equity	8.81			8.55			9.49			9.15			8.45
Return on Average Common Stockholders' Equity	8.81			8.56			9.50			9.15			8.45
Average Earning Assets to Average Assets	89.42			89.51			89.82			89.57			89.00
Allowance for Loan Losses as % of Total Loans	1.58			1.63			1.74			1.83			1.92
Net Charge Off's as % of Average Loans (Annualized)	0.12			0.27			0.47			0.13			(0.19		)
Average Stockholders' Equity to Average Assets	12.62			12.34			12.18			12.00			11.94
Tax Equivalent Yield on Earning Assets	4.24			4.26			4.41			4.33			4.40
Cost of Supporting Liabilities	0.46			0.46			0.43			0.44			0.43
Net Interest Margin (FTE) on Earning Assets	3.78			3.80			3.98			3.89			3.97
Tangible Book Value Per Share	$	13.96		$	13.65		$	13.53		$	13.14		$	12.63



LOANS
(Dollars In Thousands)	March 31,			December 31,			September 30,			June 30,			March 31,
	2015			2014			2014			2014			2014
Commercial and industrial loans	$	938,937		$	896,688		$	900,970		$	857,844		$	787,390
Agricultural production financing and other loans to farmers	95,652			104,927			99,649			102,270			99,226
Real estate loans:
Construction	237,036			207,221			178,213			165,388			155,117
Commercial and farmland	1,646,418			1,672,661			1,603,698			1,621,436			1,606,735
Residential	640,451			647,315			625,609			629,162			626,202
Home Equity	286,914			286,529			269,952			261,811			256,790
Individuals' loans for household and other personal expenditures	70,223			73,400			66,832			61,533			61,742
Lease financing receivables, net of unearned income	853			1,106			1,208			1,231			1,378
Other loans	49,048			35,018			26,336			22,058			22,047
Loans	3,965,532			3,924,865			3,772,467			3,722,733			3,616,627
Allowance for loan losses	(62,801		)	(63,964		)	(65,596		)	(68,367		)	(69,583		)
NET LOANS	$	3,902,731		$	3,860,901		$	3,706,871		$	3,654,366		$	3,547,044



DEPOSITS
(Dollars In Thousands)	March 31,		December 31,		September 30,		June 30,		March 31,
	2015		2014		2014		2014		2014
Demand deposits	$	2,116,135	$	2,146,492	$	1,947,040	$	2,041,183	$	1,966,895
Savings deposits	1,402,421		1,376,707		1,281,994		1,251,277		1,282,702
Certificates and other time deposits of $100,000 or more	283,313		260,685		241,163		251,585		265,683
Other certificates and time deposits	516,500		523,010		502,965		534,344		568,160
Brokered deposits	329,706		333,800		336,961		251,221		199,739
TOTAL DEPOSITS	$	4,648,075	$	4,640,694	$	4,310,123	$	4,329,610	$	4,283,179



NET INTEREST INCOME
(Dollars in Thousands)	For the Three Months Ended
	March 31, 2015							March 31, 2014
	Average Balance			Interest Income / Expense		Average Rate		Average Balance			Interest Income / Expense		Average Rate
Assets:
Interest-bearing time deposits	$	56,907		$	36	0.25	%	$	44,312		$	23	0.21	%
Federal Reserve and Federal Home Loan Bank stock	41,351			550		5.32		38,990			652		6.69
Investment Securities: ⁽¹⁾
Taxable	736,378			4,723		2.57		736,682			4,810		2.61
Tax-Exempt ⁽²⁾	433,531			5,899		5.44		369,597			5,289		5.72
Total Investment Securities	1,169,909			10,622		3.63		1,106,279			10,099		3.65
Loans held for sale	4,927			110		8.93		5,060			71		5.61
Loans: ⁽³⁾
Commercial	3,041,242			34,169		4.49		2,925,997			33,611		4.59
Real Estate Mortgage	459,794			4,849		4.22		346,318			3,989		4.61
Installment	394,063			4,424		4.49		326,357			4,353		5.34
Tax-Exempt ⁽²⁾	36,788			382		4.15		12,352			94		3.04
Total Loans	3,936,814			43,934		4.46		3,616,084			42,118		4.66
Total Earning Assets	5,204,981			55,142		4.24		4,805,665			52,892		4.40
Net unrealized gain on securities available for sale	14,480							3,636
Allowance for loan losses	(63,429		)					(68,806		)
Cash and cash equivalents	98,791							95,255
Premises and equipment	77,707							74,632
Other assets	488,544							489,306
Total Assets	$	5,821,074						$	5,399,688
Liabilities:
Interest-bearing deposits:
Interest-bearing NOW deposits	$	1,030,433		$	252	0.10	%	$	1,044,251		$	268	0.10	%
Money market deposits	823,761			412		0.20		752,738			367		0.20
Savings deposits	571,751			159		0.11		524,383			152		0.12
Certificates and other time deposits	1,126,098			2,693		0.96		978,673			1,762		0.72
Total Interest-bearing Deposits	3,552,043			3,516		0.40		3,300,045			2,549		0.31
Borrowings	437,864			2,452		2.24		493,578			2,568		2.08
Total Interest-bearing Liabilities	3,989,907			5,968		0.60		3,793,623			5,117		0.54
Noninterest-bearing deposits	1,053,095							915,636
Other liabilities	43,561							45,530
Total Liabilities	5,086,563							4,754,789
Stockholders' Equity	734,511							644,899
Total Liabilities and Stockholders' Equity	$	5,821,074		5,968		0.46		$	5,399,688		5,117		0.43
Net Interest Income				$	49,174						$	47,775
Net Interest Margin						3.78	%						3.97	%


⁽¹⁾ Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments.
⁽²⁾ Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 35 percent for 2015 and 2014. These totals equal $2,198 and $1,884 for the three months ended March 31, 2015 and 2014, respectively.
⁽³⁾ Non accruing loans have been included in the average balances.