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 22, 2021
Commission File Number 0-17071
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (IRS Employer Identification No.) | ||||
(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)
| Title of Each Class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
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:
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On April 22, 2021, First Merchants Corporation issued a press release to report its financial results for the first quarter ended March 31, 2021. 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) Not applicable.
(d) Exhibits.
Exhibit 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
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/ Michele M. Kawiecki Michele M. Kawiecki Executive Vice President, Chief Financial Officer (Principal Financial and Accounting Officer) | |||||||||||
Dated: April 22, 2021 | |||||||||||
EXHIBIT INDEX
Exhibit No. Description
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
N / E / W / S R / E / L / E / A / S / E
April 22, 2021
FOR IMMEDIATE RELEASE
For more information, contact:
Nicole M. Weaver, Vice President and Director of Corporate Administration
765-521-7619
http://www.firstmerchants.com
SOURCE: First Merchants Corporation, Muncie, Indiana
FIRST MERCHANTS CORPORATION ANNOUNCES FIRST QUARTER 2021 EARNINGS PER SHARE
First Merchants Corporation (NASDAQ - FRME) has reported first quarter 2021 net income of $49.5 million compared to $34.3 million during the same period in 2020. Earnings per share for the period totaled $.91 per share compared to the first quarter of 2020 result of $.62 per share, an increase of $.29, or 47 percent.
Total assets equaled $14.6 billion as of quarter-end and loans totaled $9.3 billion. The Corporation’s loan portfolio increased by $711 million, or 8.3 percent, during the past twelve months. The increase was primarily due to Paycheck Protection Program (“PPP”) loans which accounted for $742 million of the quarter-end loan balance. Investments increased $1 billion, or 37.2 percent, during the year and now total $3.7 billion. Total deposits equaled $12.0 billion as of quarter-end and increased by $2.1 billion, or 21.1 percent over the same period in 2020.
On January 1, 2021, the Corporation adopted the current expected credit losses (“CECL”) model for calculating the allowance for credit losses. The impact of the adoption was an increase to Allowance for Credit Losses – Loans of $74.1 million and the establishment of an Allowance for Credit Losses - Investments of $245,000. Net charge-offs totaled $3.6 million for the quarter and no provision expense was recorded. As a result, the quarter end Allowance for Credit Losses – Loans balance was $201.1 million, or 2.16% of total loans. Non-accrual loans totaled $57.9 million as of quarter-end.
Mark Hardwick, Chief Executive Officer, stated, “We have returned to the office and have reopened our lobbies to serve our customers in a more personal way. The vaccination progress and improved case numbers in our markets are cause for optimism. Our first quarter results were strong and I’m especially pleased to have produced a return on assets of 1.39 percent, return on tangible common equity of 15.87 percent and efficiency ratio of 50.23 percent. The current balance sheet and financial performance positions First Merchants to capitalize on future growth opportunities.”
Net-interest income totaling $100.4 million for the quarter, continued to grow with an increase of $6.6 million, or 7.0 percent compared to the first quarter of 2020. Net-interest margin on a tax equivalent basis, totaling 3.23 percent, declined by 23 basis points compared to the first quarter of 2020. Yield on earning assets for the first quarter totaled 3.52 percent and cost of supporting liabilities totaled 0.29 percent. Fair value accretion contributed less to margin as it accounted for 6 basis points in the first quarter of 2021, compared to 12 basis points in the first quarter of 2020. PPP loans contributed 13 basis points to margin during the first quarter of 2021 as unamortized SBA fees were recognized upon loan forgiveness.
Non-interest income totaled $24.1 million for the quarter, a $5.7 million decline from the first quarter of 2020. Customer-specific line items accounted for $2.8 million of the decrease driven by lower derivative hedge fees and the impact of the Durbin Amendment adoption on card payment fees. Additionally, gains on the sale of securities decreased by $2.8 million during the quarter. Non-interest expense totaled $66.1 million for the quarter and was stable compared to the 2020 first quarter expense total of $66.2 million.
The effective tax rate was 15.3 percent in the first quarter of 2021, compared to 9.2 percent in the first quarter of 2020. The CARES Act provided an opportunity to carry back net operating losses to pre-tax reform income tax rates in the first quarter of 2020. The result was a decline in income tax expense of $1.2 million and a lower-than-normal effective tax rate.
The loan-to-deposit ratio totals 78.0 percent and loan-to-asset ratio totals 63.7 percent. Additionally, the Corporation’s total risk-based capital ratio equaled 14.33 percent, the common equity tier 1 capital ratio equaled 11.99 percent, and the tangible common equity ratio totaled 8.78 percent. These ratios reflect the Corporation’s strong liquidity and capital positions.
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 22, 2021.
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 22, 2021. To access a replay of the call, US participants should dial (Toll Free) 877-344-7529, Canada participants should dial 855-669-9658, or for International participants, dial +1 412-317-0088. The replay access code is 10153171.
In order to view the web cast and presentation slides, please go to http://services.choruscall.com/links/frme210422.html during the time of the call. A replay of the web cast will be available until April 22, 2022.
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 has one full-service bank charter, First Merchants Bank. The Bank also operates as First Merchants Private Wealth Advisors (as a division of First Merchants Bank).
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.
Forward-Looking Statements
This release contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can often, but not always, be identified by the use of words like “believe”, “continue”, “pattern”, “estimate”, “project”, “intend”, “anticipate”, “expect” and similar expressions or future or conditional verbs such as “will”, would”, “should”, “could”, “might”, “can”, “may”, or similar expressions. These statements include statements of First Merchants’ goals, intentions and expectations; statements regarding the First Merchants’ business plan and growth strategies; statements regarding the asset quality of First Merchants’ loan and investment portfolios; and estimates of First Merchants’ risks and future costs and benefits. These forward-looking statements are subject to significant risks, assumptions and uncertainties that may cause results to differ materially from those set forth in forward-looking statements, including, among other things: possible changes in monetary and fiscal policies, and laws and regulations; the effects of easing restrictions on participants in the financial services industry; the cost and other effects of legal and administrative cases; possible changes in the credit worthiness of customers and the possible impairment of collectability of loans; fluctuations in market rates of interest; competitive factors in the banking industry; changes in the banking legislation or regulatory requirements of federal and state agencies applicable to bank holding companies and banks like First Merchants’ affiliate bank; continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; changes in market, economic, operational, liquidity, credit and interest rate risks associated with the First Merchants’ business; and other risks and factors identified in each of First Merchants’ filings with the Securities and Exchange Commission. First Merchants does not undertake any obligation to update any forward-looking statement, whether written or oral, relating to the matters discussed in this press release. In addition, First Merchants’ past results of operations do not necessarily indicate its anticipated future results.
* * * *
| CONSOLIDATED BALANCE SHEETS | |||||||||||
| (Dollars In Thousands) | March 31, | ||||||||||
| 2021 | 2020 | ||||||||||
| ASSETS | |||||||||||
| Cash and cash equivalents | $ | 187,901 | $ | 127,731 | |||||||
| Interest-bearing deposits | 392,806 | 132,944 | |||||||||
| Investment securities, net of allowance for credit losses of $245,000 and $0 | 3,700,857 | 2,697,954 | |||||||||
| Loans held for sale | 4,430 | 5,039 | |||||||||
| Loans | 9,318,228 | 8,606,849 | |||||||||
| Less: Allowance for credit losses - loans | (201,082) | (99,454) | |||||||||
| Net loans | 9,117,146 | 8,507,395 | |||||||||
| Premises and equipment | 109,432 | 114,045 | |||||||||
| Federal Home Loan Bank stock | 28,736 | 28,736 | |||||||||
| Interest receivable | 54,662 | 47,489 | |||||||||
| Goodwill and other intangibles | 571,536 | 577,366 | |||||||||
| Cash surrender value of life insurance | 293,766 | 289,574 | |||||||||
| Other real estate owned | 604 | 7,972 | |||||||||
| Tax asset, deferred and receivable | 40,163 | 9,497 | |||||||||
| Other assets | 127,027 | 147,776 | |||||||||
| TOTAL ASSETS | $ | 14,629,066 | $ | 12,693,518 | |||||||
| LIABILITIES | |||||||||||
| Deposits: | |||||||||||
| Noninterest-bearing | $ | 2,494,891 | $ | 1,688,205 | |||||||
| Interest-bearing | 9,456,889 | 8,182,279 | |||||||||
| Total Deposits | 11,951,780 | 9,870,484 | |||||||||
| Borrowings: | |||||||||||
| Federal funds purchased | — | 47,000 | |||||||||
| Securities sold under repurchase agreements | 185,721 | 183,317 | |||||||||
| Federal Home Loan Bank advances | 359,337 | 480,995 | |||||||||
| Subordinated debentures and other borrowings | 118,439 | 128,741 | |||||||||
| Total Borrowings | 663,497 | 840,053 | |||||||||
| Interest payable | 4,020 | 7,746 | |||||||||
| Other liabilities | 203,913 | 197,275 | |||||||||
| Total Liabilities | 12,823,210 | 10,915,558 | |||||||||
| 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 -- 100,000,000 shares | |||||||||||
| Issued and outstanding - 53,953,723 and 53,754,137 shares | 6,744 | 6,719 | |||||||||
| Additional paid-in capital | 1,007,300 | 1,000,942 | |||||||||
| Retained earnings | 755,877 | 716,518 | |||||||||
| Accumulated other comprehensive income | 35,810 | 53,656 | |||||||||
| Total Stockholders' Equity | 1,805,856 | 1,777,960 | |||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 14,629,066 | $ | 12,693,518 | |||||||
| CONSOLIDATED STATEMENTS OF INCOME | Three Months Ended | ||||||||||
| (Dollars In Thousands, Except Per Share Amounts) | March 31, | ||||||||||
| 2021 | 2020 | ||||||||||
| INTEREST INCOME | |||||||||||
| Loans receivable: | |||||||||||
| Taxable | $ | 85,105 | $ | 96,652 | |||||||
| Tax-exempt | 5,339 | 5,315 | |||||||||
| Investment securities: | |||||||||||
| Taxable | 6,695 | 7,631 | |||||||||
| Tax-exempt | 12,385 | 9,335 | |||||||||
| Deposits with financial institutions | 114 | 575 | |||||||||
| Federal Home Loan Bank stock | 178 | 299 | |||||||||
| Total Interest Income | 109,816 | 119,807 | |||||||||
| INTEREST EXPENSE | |||||||||||
| Deposits | 6,200 | 21,748 | |||||||||
| Federal funds purchased | 2 | 111 | |||||||||
| Securities sold under repurchase agreements | 87 | 352 | |||||||||
| Federal Home Loan Bank advances | 1,442 | 1,774 | |||||||||
| Subordinated debentures and other borrowings | 1,657 | 1,945 | |||||||||
| Total Interest Expense | 9,388 | 25,930 | |||||||||
| NET INTEREST INCOME | 100,428 | 93,877 | |||||||||
| Provision for credit losses - loans | — | 19,752 | |||||||||
| NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 100,428 | 74,125 | |||||||||
| OTHER INCOME | |||||||||||
| Service charges on deposit accounts | 5,264 | 5,970 | |||||||||
| Fiduciary and wealth management fees | 6,422 | 5,985 | |||||||||
| Card payment fees | 4,367 | 5,907 | |||||||||
| Net gains and fees on sales of loans | 3,986 | 3,363 | |||||||||
| Derivative hedge fees | 317 | 1,939 | |||||||||
| Other customer fees | 368 | 398 | |||||||||
| Earnings on cash surrender value of life insurance | 1,336 | 1,360 | |||||||||
| Net realized gains on sales of available for sale securities | 1,799 | 4,612 | |||||||||
| Other income | 232 | 265 | |||||||||
| Total Other Income | 24,091 | 29,799 | |||||||||
| OTHER EXPENSES | |||||||||||
| Salaries and employee benefits | 38,811 | 39,243 | |||||||||
| Net occupancy | 6,491 | 5,801 | |||||||||
| Equipment | 5,030 | 4,344 | |||||||||
| Marketing | 1,124 | 1,443 | |||||||||
| Outside data processing fees | 4,244 | 4,199 | |||||||||
| Printing and office supplies | 283 | 387 | |||||||||
| Intangible asset amortization | 1,357 | 1,514 | |||||||||
| FDIC assessments | 1,368 | 1,523 | |||||||||
| Other real estate owned and foreclosure expenses | 734 | 505 | |||||||||
| Professional and other outside services | 2,543 | 2,258 | |||||||||
| Other expenses | 4,113 | 4,954 | |||||||||
| Total Other Expenses | 66,098 | 66,171 | |||||||||
| INCOME BEFORE INCOME TAX | 58,421 | 37,753 | |||||||||
| Income tax expense | 8,952 | 3,490 | |||||||||
| NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 49,469 | $ | 34,263 | |||||||
| Per Share Data: | |||||||||||
| Basic Net Income Available to Common Stockholders | $ | 0.92 | $ | 0.63 | |||||||
| Diluted Net Income Available to Common Stockholders | $ | 0.91 | $ | 0.62 | |||||||
| Cash Dividends Paid | $ | 0.26 | $ | 0.26 | |||||||
| Average Diluted Shares Outstanding (in thousands) | 54,134 | 54,918 | |||||||||
| FINANCIAL HIGHLIGHTS | |||||||||||
| (Dollars in thousands) | Three Months Ended | ||||||||||
| March 31, | |||||||||||
| 2021 | 2020 | ||||||||||
| NET CHARGE-OFFS | $ | 3,621 | $ | 582 | |||||||
| AVERAGE BALANCES: | |||||||||||
| Total Assets | $ | 14,244,739 | $ | 12,573,238 | |||||||
| Total Loans | 9,236,421 | 8,526,571 | |||||||||
| Total Earning Assets | 13,023,318 | 11,292,430 | |||||||||
| Total Deposits | 11,567,918 | 9,886,273 | |||||||||
| Total Stockholders' Equity | 1,840,432 | 1,816,418 | |||||||||
| FINANCIAL RATIOS: | |||||||||||
| Return on Average Assets | 1.39 | % | 1.09 | % | |||||||
| Return on Average Stockholders' Equity | 10.75 | 7.55 | |||||||||
| Return on Average Common Stockholders' Equity | 10.75 | 7.55 | |||||||||
| Average Earning Assets to Average Assets | 91.43 | 89.81 | |||||||||
| Allowance for Credit Losses - Loans as % of Total Loans | 2.16 | 1.15 | |||||||||
| Net Charge-offs as % of Average Loans (Annualized) | 0.16 | 0.03 | |||||||||
| Average Stockholders' Equity to Average Assets | 12.92 | 14.45 | |||||||||
| Tax Equivalent Yield on Average Earning Assets | 3.52 | 4.38 | |||||||||
| Interest Expense/Average Earning Assets | 0.29 | 0.92 | |||||||||
| Net Interest Margin (FTE) on Average Earning Assets | 3.23 | 3.46 | |||||||||
| Efficiency Ratio | 50.23 | 52.17 | |||||||||
| Tangible Common Book Value Per Share | $ | 22.98 | $ | 22.46 | |||||||
| NON-PERFORMING ASSETS | |||||||||||||||||||||||||||||
| (Dollars In Thousands) | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||
| 2021 | 2020 | 2020 | 2020 | 2020 | |||||||||||||||||||||||||
| Non-Accrual Loans | $ | 57,923 | $ | 61,471 | $ | 56,739 | $ | 50,102 | $ | 15,649 | |||||||||||||||||||
| Renegotiated Loans | 655 | 3,240 | 2,677 | 1,086 | 665 | ||||||||||||||||||||||||
| Non-Performing Loans (NPL) | 58,578 | 64,711 | 59,416 | 51,188 | 16,314 | ||||||||||||||||||||||||
| Other Real Estate Owned and Repossessions | 604 | 940 | 6,984 | 7,409 | 8,017 | ||||||||||||||||||||||||
| Non-Performing Assets (NPA) | 59,182 | 65,651 | 66,400 | 58,597 | 24,331 | ||||||||||||||||||||||||
| 90+ Days Delinquent | 1,093 | 746 | 1,330 | 4,981 | 312 | ||||||||||||||||||||||||
| NPAs & 90 Day Delinquent | $ | 60,275 | $ | 66,397 | $ | 67,730 | $ | 63,578 | $ | 24,643 | |||||||||||||||||||
| Allowance for Credit Losses - Loans | $ | 201,082 | $ | 130,648 | $ | 126,726 | $ | 121,119 | $ | 99,454 | |||||||||||||||||||
| Quarterly Net Charge-offs | 3,621 | 560 | 6,937 | 230 | 582 | ||||||||||||||||||||||||
| NPAs / Actual Assets % | 0.40 | % | 0.47 | % | 0.48 | % | 0.42 | % | 0.19 | % | |||||||||||||||||||
| NPAs & 90 Day / Actual Assets % | 0.41 | % | 0.47 | % | 0.49 | % | 0.46 | % | 0.19 | % | |||||||||||||||||||
| NPAs / Actual Loans and OREO % | 0.63 | % | 0.71 | % | 0.72 | % | 0.63 | % | 0.28 | % | |||||||||||||||||||
| Allowance for Credit Losses - Loans / Actual Loans (%) | 2.16 | % | 1.41 | % | 1.37 | % | 1.30 | % | 1.15 | % | |||||||||||||||||||
| Net Charge-offs as % of Average Loans (Annualized) | 0.16 | % | 0.02 | % | 0.30 | % | 0.01 | % | 0.03 | % | |||||||||||||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||||||||||||||||||||
| (Dollars In Thousands) | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||
| 2021 | 2020 | 2020 | 2020 | 2020 | |||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 187,901 | $ | 192,896 | $ | 164,632 | $ | 229,759 | $ | 127,731 | |||||||||||||||||||
| Interest-bearing deposits | 392,806 | 392,305 | 273,936 | 380,021 | 132,944 | ||||||||||||||||||||||||
| Investment securities, net of allowance for credit losses | 3,700,857 | 3,146,787 | 2,933,286 | 2,789,379 | 2,697,954 | ||||||||||||||||||||||||
| Loans held for sale | 4,430 | 3,966 | 3,183 | 901 | 5,039 | ||||||||||||||||||||||||
| Loans | 9,318,228 | 9,243,174 | 9,243,833 | 9,298,541 | 8,606,849 | ||||||||||||||||||||||||
| Less: Allowance for credit losses - loans | (201,082) | (130,648) | (126,726) | (121,119) | (99,454) | ||||||||||||||||||||||||
| Net loans | 9,117,146 | 9,112,526 | 9,117,107 | 9,177,422 | 8,507,395 | ||||||||||||||||||||||||
| Premises and equipment | 109,432 | 111,062 | 112,959 | 112,548 | 114,045 | ||||||||||||||||||||||||
| Federal Home Loan Bank stock | 28,736 | 28,736 | 28,736 | 28,736 | 28,736 | ||||||||||||||||||||||||
| Interest receivable | 54,662 | 53,948 | 52,992 | 57,063 | 47,489 | ||||||||||||||||||||||||
| Goodwill and other intangibles | 571,536 | 572,893 | 574,369 | 575,855 | 577,366 | ||||||||||||||||||||||||
| Cash surrender value of life insurance | 293,766 | 292,745 | 291,543 | 290,715 | 289,574 | ||||||||||||||||||||||||
| Other real estate owned | 604 | 940 | 6,942 | 7,367 | 7,972 | ||||||||||||||||||||||||
| Tax asset, deferred and receivable | 40,163 | 12,340 | 21,762 | 13,126 | 9,497 | ||||||||||||||||||||||||
| Other assets | 127,027 | 146,066 | 155,903 | 156,486 | 147,776 | ||||||||||||||||||||||||
| TOTAL ASSETS | $ | 14,629,066 | $ | 14,067,210 | $ | 13,737,350 | $ | 13,819,378 | $ | 12,693,518 | |||||||||||||||||||
| LIABILITIES | |||||||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||||||
| Noninterest-bearing | $ | 2,494,891 | $ | 2,298,138 | $ | 2,187,607 | $ | 2,260,351 | $ | 1,688,205 | |||||||||||||||||||
| Interest-bearing | 9,456,889 | 9,063,472 | 8,718,546 | 8,705,637 | 8,182,279 | ||||||||||||||||||||||||
| Total Deposits | 11,951,780 | 11,361,610 | 10,906,153 | 10,965,988 | 9,870,484 | ||||||||||||||||||||||||
| Borrowings: | |||||||||||||||||||||||||||||
| Federal funds purchased | — | — | 80,000 | — | 47,000 | ||||||||||||||||||||||||
| Securities sold under repurchase agreements | 185,721 | 177,102 | 187,732 | 181,150 | 183,317 | ||||||||||||||||||||||||
| Federal Home Loan Bank advances | 359,337 | 389,430 | 399,522 | 400,817 | 480,995 | ||||||||||||||||||||||||
| Subordinated debentures and other borrowings | 118,439 | 118,380 | 118,320 | 285,197 | 128,741 | ||||||||||||||||||||||||
| Total Borrowings | 663,497 | 684,912 | 785,574 | 867,164 | 840,053 | ||||||||||||||||||||||||
| Interest payable | 4,020 | 3,287 | 5,038 | 5,587 | 7,746 | ||||||||||||||||||||||||
| Other liabilities | 203,913 | 141,756 | 206,929 | 171,544 | 197,275 | ||||||||||||||||||||||||
| Total Liabilities | 12,823,210 | 12,191,565 | 11,903,694 | 12,010,283 | 10,915,558 | ||||||||||||||||||||||||
| 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 -- 100,000,000 shares | |||||||||||||||||||||||||||||
| Issued and outstanding | 6,744 | 6,740 | 6,736 | 6,724 | 6,719 | ||||||||||||||||||||||||
| Additional paid-in capital | 1,007,300 | 1,005,366 | 1,003,777 | 1,002,962 | 1,000,942 | ||||||||||||||||||||||||
| Retained earnings | 755,877 | 788,578 | 757,550 | 735,439 | 716,518 | ||||||||||||||||||||||||
| Accumulated other comprehensive income | 35,810 | 74,836 | 65,468 | 63,845 | 53,656 | ||||||||||||||||||||||||
| Total Stockholders' Equity | 1,805,856 | 1,875,645 | 1,833,656 | 1,809,095 | 1,777,960 | ||||||||||||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 14,629,066 | $ | 14,067,210 | $ | 13,737,350 | $ | 13,819,378 | $ | 12,693,518 | |||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||||||||||
| (Dollars In Thousands, Except Per Share Amounts) | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||
| 2021 | 2020 | 2020 | 2020 | 2020 | |||||||||||||||||||||||||
| INTEREST INCOME | |||||||||||||||||||||||||||||
| Loans receivable: | |||||||||||||||||||||||||||||
| Taxable | $ | 85,105 | $ | 90,138 | $ | 84,162 | $ | 87,312 | $ | 96,652 | |||||||||||||||||||
| Tax-exempt | 5,339 | 5,414 | 5,395 | 5,359 | 5,315 | ||||||||||||||||||||||||
| Investment securities: | |||||||||||||||||||||||||||||
| Taxable | 6,695 | 5,263 | 5,399 | 6,147 | 7,631 | ||||||||||||||||||||||||
| Tax-exempt | 12,385 | 12,056 | 10,931 | 10,019 | 9,335 | ||||||||||||||||||||||||
| Deposits with financial institutions | 114 | 139 | 90 | 134 | 575 | ||||||||||||||||||||||||
| Federal Home Loan Bank stock | 178 | 214 | 248 | 281 | 299 | ||||||||||||||||||||||||
| Total Interest Income | 109,816 | 113,224 | 106,225 | 109,252 | 119,807 | ||||||||||||||||||||||||
| INTEREST EXPENSE | |||||||||||||||||||||||||||||
| Deposits | 6,200 | 7,509 | 9,776 | 12,707 | 21,748 | ||||||||||||||||||||||||
| Federal funds purchased | 2 | 2 | 5 | 2 | 111 | ||||||||||||||||||||||||
| Securities sold under repurchase agreements | 87 | 77 | 83 | 92 | 352 | ||||||||||||||||||||||||
| Federal Home Loan Bank advances | 1,442 | 1,656 | 1,749 | 1,794 | 1,774 | ||||||||||||||||||||||||
| Subordinated debentures and other borrowings | 1,657 | 1,669 | 1,691 | 1,639 | 1,945 | ||||||||||||||||||||||||
| Total Interest Expense | 9,388 | 10,913 | 13,304 | 16,234 | 25,930 | ||||||||||||||||||||||||
| NET INTEREST INCOME | 100,428 | 102,311 | 92,921 | 93,018 | 93,877 | ||||||||||||||||||||||||
| Provision for credit losses - loans | — | 4,482 | 12,544 | 21,895 | 19,752 | ||||||||||||||||||||||||
| NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 100,428 | 97,829 | 80,377 | 71,123 | 74,125 | ||||||||||||||||||||||||
| OTHER INCOME | |||||||||||||||||||||||||||||
| Service charges on deposit accounts | 5,264 | 5,508 | 5,209 | 4,312 | 5,970 | ||||||||||||||||||||||||
| Fiduciary and wealth management fees | 6,422 | 6,251 | 5,910 | 5,601 | 5,985 | ||||||||||||||||||||||||
| Card payment fees | 4,367 | 3,502 | 3,996 | 6,097 | 5,907 | ||||||||||||||||||||||||
| Net gains and fees on sales of loans | 3,986 | 5,393 | 5,841 | 3,674 | 3,363 | ||||||||||||||||||||||||
| Derivative hedge fees | 317 | 2,281 | 1,715 | 1,042 | 1,939 | ||||||||||||||||||||||||
| Other customer fees | 368 | 394 | 372 | 333 | 398 | ||||||||||||||||||||||||
| Earnings on cash surrender value of life insurance | 1,336 | 1,283 | 1,171 | 1,326 | 1,360 | ||||||||||||||||||||||||
| Net realized gains on sales of available for sale securities | 1,799 | 2,398 | 1,817 | 3,068 | 4,612 | ||||||||||||||||||||||||
| Other income | 232 | 473 | 132 | 1,028 | 265 | ||||||||||||||||||||||||
| Total Other Income | 24,091 | 27,483 | 26,163 | 26,481 | 29,799 | ||||||||||||||||||||||||
| OTHER EXPENSES | |||||||||||||||||||||||||||||
| Salaries and employee benefits | 38,811 | 41,809 | 39,187 | 35,698 | 39,243 | ||||||||||||||||||||||||
| Net occupancy | 6,491 | 9,653 | 5,855 | 5,447 | 5,801 | ||||||||||||||||||||||||
| Equipment | 5,030 | 5,555 | 4,956 | 4,489 | 4,344 | ||||||||||||||||||||||||
| Marketing | 1,124 | 1,763 | 1,311 | 2,092 | 1,443 | ||||||||||||||||||||||||
| Outside data processing fees | 4,244 | 3,839 | 3,776 | 2,618 | 4,199 | ||||||||||||||||||||||||
| Printing and office supplies | 283 | 307 | 331 | 279 | 387 | ||||||||||||||||||||||||
| Intangible asset amortization | 1,357 | 1,476 | 1,486 | 1,511 | 1,514 | ||||||||||||||||||||||||
| FDIC assessments | 1,368 | 1,560 | 1,249 | 1,472 | 1,523 | ||||||||||||||||||||||||
| Other real estate owned and foreclosure expenses | 734 | (1,576) | 717 | 684 | 505 | ||||||||||||||||||||||||
| Professional and other outside services | 2,543 | 2,836 | 2,254 | 1,553 | 2,258 | ||||||||||||||||||||||||
| Other expenses | 4,113 | 5,314 | 3,587 | 4,146 | 4,954 | ||||||||||||||||||||||||
| Total Other Expenses | 66,098 | 72,536 | 64,709 | 59,989 | 66,171 | ||||||||||||||||||||||||
| INCOME BEFORE INCOME TAX | 58,421 | 52,776 | 41,831 | 37,615 | 37,753 | ||||||||||||||||||||||||
| Income tax expense | 8,952 | 7,641 | 5,621 | 4,623 | 3,490 | ||||||||||||||||||||||||
| NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 49,469 | $ | 45,135 | $ | 36,210 | $ | 32,992 | $ | 34,263 | |||||||||||||||||||
| Per Share Data: | |||||||||||||||||||||||||||||
| Basic Net Income Available to Common Stockholders | $ | 0.92 | $ | 0.83 | $ | 0.67 | $ | 0.62 | $ | 0.63 | |||||||||||||||||||
| Diluted Net Income Available to Common Stockholders | $ | 0.91 | $ | 0.83 | $ | 0.67 | $ | 0.62 | $ | 0.62 | |||||||||||||||||||
| Cash Dividends Paid | $ | 0.26 | $ | 0.26 | $ | 0.26 | $ | 0.26 | $ | 0.26 | |||||||||||||||||||
| Average Diluted Shares Outstanding (in thousands) | 54,134 | 54,050 | 53,971 | 53,943 | 54,918 | ||||||||||||||||||||||||
| FINANCIAL RATIOS: | |||||||||||||||||||||||||||||
| Return on Average Assets | 1.39 | % | 1.29 | % | 1.06 | % | 0.97 | % | 1.09 | % | |||||||||||||||||||
| Return on Average Stockholders' Equity | 10.75 | 9.72 | 7.91 | 7.35 | 7.55 | ||||||||||||||||||||||||
| Return on Average Common Stockholders' Equity | 10.75 | 9.72 | 7.91 | 7.35 | 7.55 | ||||||||||||||||||||||||
| Average Earning Assets to Average Assets | 91.43 | 90.66 | 90.34 | 89.25 | 89.81 | ||||||||||||||||||||||||
| Allowance for Credit Losses - Loans as % of Total Loans | 2.16 | 1.41 | 1.37 | 1.30 | 1.15 | ||||||||||||||||||||||||
| Net Charge-offs as % of Average Loans (Annualized) | 0.16 | 0.02 | 0.30 | 0.01 | 0.03 | ||||||||||||||||||||||||
| Average Stockholders' Equity to Average Assets | 12.92 | 13.29 | 13.41 | 13.15 | 14.45 | ||||||||||||||||||||||||
| Tax Equivalent Yield on Average Earning Assets | 3.52 | 3.72 | 3.58 | 3.72 | 4.38 | ||||||||||||||||||||||||
| Interest Expense/Average Earning Assets | 0.29 | 0.34 | 0.43 | 0.53 | 0.92 | ||||||||||||||||||||||||
| Net Interest Margin (FTE) on Average Earning Assets | 3.23 | 3.38 | 3.15 | 3.19 | 3.46 | ||||||||||||||||||||||||
| Efficiency Ratio | 50.23 | 55.01 | 51.40 | 47.95 | 52.17 | ||||||||||||||||||||||||
| Tangible Common Book Value Per Share | $ | 22.98 | $ | 24.27 | $ | 23.48 | $ | 23.04 | $ | 22.46 | |||||||||||||||||||
| LOANS | |||||||||||||||||||||||||||||
| (Dollars In Thousands) | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||
| 2021 | 2020 | 2020 | 2020 | 2020 | |||||||||||||||||||||||||
| Commercial and industrial loans | $ | 2,876,212 | $ | 2,776,699 | $ | 2,875,331 | $ | 2,898,329 | $ | 2,199,226 | |||||||||||||||||||
| Agricultural land, production and other loans to farmers | 245,631 | 281,884 | 301,192 | 316,815 | 315,950 | ||||||||||||||||||||||||
| Real estate loans: | |||||||||||||||||||||||||||||
| Construction | 541,224 | 484,723 | 622,084 | 640,560 | 643,674 | ||||||||||||||||||||||||
| Commercial real estate, non-owner occupied | 2,178,832 | 2,220,949 | 2,098,589 | 2,097,767 | 2,118,148 | ||||||||||||||||||||||||
| Commercial real estate, owner occupied | 950,038 | 958,501 | 931,815 | 919,254 | 921,491 | ||||||||||||||||||||||||
| Residential | 1,239,925 | 1,234,741 | 1,146,406 | 1,145,187 | 1,121,556 | ||||||||||||||||||||||||
| Home equity | 482,229 | 508,259 | 527,458 | 532,314 | 570,398 | ||||||||||||||||||||||||
| Individuals' loans for household and other personal expenditures | 126,387 | 129,479 | 125,411 | 123,611 | 129,765 | ||||||||||||||||||||||||
| Public finance and other commercial loans | 677,750 | 647,939 | 615,547 | 624,704 | 586,641 | ||||||||||||||||||||||||
| Loans | 9,318,228 | 9,243,174 | 9,243,833 | 9,298,541 | 8,606,849 | ||||||||||||||||||||||||
| Allowance for credit losses - loans | (201,082) | (130,648) | (126,726) | (121,119) | (99,454) | ||||||||||||||||||||||||
| NET LOANS | $ | 9,117,146 | $ | 9,112,526 | $ | 9,117,107 | $ | 9,177,422 | $ | 8,507,395 | |||||||||||||||||||
| DEPOSITS | |||||||||||||||||||||||||||||
| (Dollars In Thousands) | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||
| 2021 | 2020 | 2020 | 2020 | 2020 | |||||||||||||||||||||||||
| Demand deposits | $ | 7,245,850 | $ | 6,821,152 | $ | 6,279,554 | $ | 6,288,360 | $ | 5,293,200 | |||||||||||||||||||
| Savings deposits | 3,857,624 | 3,661,713 | 3,518,286 | 3,278,156 | 2,962,821 | ||||||||||||||||||||||||
| Certificates and other time deposits of $100,000 or more | 332,745 | 346,194 | 467,610 | 607,474 | 694,062 | ||||||||||||||||||||||||
| Other certificates and time deposits | 449,655 | 459,168 | 542,919 | 669,119 | 717,723 | ||||||||||||||||||||||||
| Brokered deposits | 65,906 | 73,383 | 97,784 | 122,879 | 202,678 | ||||||||||||||||||||||||
| TOTAL DEPOSITS | $ | 11,951,780 | $ | 11,361,610 | $ | 10,906,153 | $ | 10,965,988 | $ | 9,870,484 | |||||||||||||||||||
| CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS | |||||||||||||||||||||||||||||||||||
| (Dollars in Thousands) | |||||||||||||||||||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||||||||||||||||||
| March 31, 2021 | March 31, 2020 | ||||||||||||||||||||||||||||||||||
| Average Balance | Interest Income / Expense | Average Rate | Average Balance | Interest Income / Expense | Average Rate | ||||||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||||||||
| Interest-bearing deposits | $ | 441,254 | $ | 114 | 0.10 | % | $ | 159,859 | $ | 575 | 1.44 | % | |||||||||||||||||||||||
| Federal Home Loan Bank stock | 28,736 | 178 | 2.48 | 28,737 | 299 | 4.16 | |||||||||||||||||||||||||||||
Investment Securities: (1) | |||||||||||||||||||||||||||||||||||
| Taxable | 1,494,008 | 6,695 | 1.79 | 1,368,546 | 7,631 | 2.23 | |||||||||||||||||||||||||||||
Tax-Exempt (2) | 1,822,899 | 15,677 | 3.44 | 1,208,717 | 11,816 | 3.91 | |||||||||||||||||||||||||||||
| Total Investment Securities | 3,316,907 | 22,372 | 2.70 | 2,577,263 | 19,447 | 3.02 | |||||||||||||||||||||||||||||
| Loans held for sale | 16,139 | 156 | 3.87 | 17,217 | 193 | 4.48 | |||||||||||||||||||||||||||||
Loans: (3) | |||||||||||||||||||||||||||||||||||
| Commercial | 6,876,818 | 69,174 | 4.02 | 6,235,336 | 76,952 | 4.94 | |||||||||||||||||||||||||||||
| Real Estate Mortgage | 975,262 | 9,286 | 3.81 | 870,654 | 10,402 | 4.78 | |||||||||||||||||||||||||||||
| Installment | 674,307 | 6,489 | 3.85 | 759,614 | 9,105 | 4.79 | |||||||||||||||||||||||||||||
Tax-Exempt (2) | 693,895 | 6,758 | 3.90 | 643,750 | 6,728 | 4.18 | |||||||||||||||||||||||||||||
| Total Loans | 9,236,421 | 91,863 | 3.98 | 8,526,571 | 103,380 | 4.85 | |||||||||||||||||||||||||||||
| Total Earning Assets | 13,023,318 | 114,527 | 3.52 | % | 11,292,430 | 123,701 | 4.38 | % | |||||||||||||||||||||||||||
| Net unrealized gain (loss) on securities available for sale | 55,658 | 48,656 | |||||||||||||||||||||||||||||||||
| Allowance for credit losses | (204,353) | (81,160) | |||||||||||||||||||||||||||||||||
| Cash and cash equivalents | 165,774 | 159,757 | |||||||||||||||||||||||||||||||||
| Premises and equipment | 110,992 | 113,812 | |||||||||||||||||||||||||||||||||
| Other assets | 1,093,350 | 1,039,743 | |||||||||||||||||||||||||||||||||
| Total Assets | $ | 14,244,739 | $ | 12,573,238 | |||||||||||||||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||||||||||||||
| Interest-bearing deposits: | |||||||||||||||||||||||||||||||||||
| Interest-bearing deposits | $ | 4,616,988 | $ | 3,709 | 0.32 | % | $ | 3,589,240 | $ | 8,276 | 0.92 | % | |||||||||||||||||||||||
| Money market deposits | 2,086,322 | 835 | 0.16 | 1,535,844 | 3,783 | 0.99 | |||||||||||||||||||||||||||||
| Savings deposits | 1,660,528 | 476 | 0.11 | 1,425,054 | 1,827 | 0.51 | |||||||||||||||||||||||||||||
| Certificates and other time deposits | 859,334 | 1,180 | 0.55 | 1,666,642 | 7,862 | 1.89 | |||||||||||||||||||||||||||||
| Total Interest-bearing Deposits | 9,223,172 | 6,200 | 0.27 | 8,216,780 | 21,748 | 1.06 | |||||||||||||||||||||||||||||
| Borrowings | 675,117 | 3,188 | 1.89 | 748,185 | 4,182 | 2.24 | |||||||||||||||||||||||||||||
| Total Interest-bearing Liabilities | 9,898,289 | 9,388 | 0.38 | 8,964,965 | 25,930 | 1.16 | |||||||||||||||||||||||||||||
| Noninterest-bearing deposits | 2,344,746 | 1,669,493 | |||||||||||||||||||||||||||||||||
| Other liabilities | 161,272 | 122,362 | |||||||||||||||||||||||||||||||||
| Total Liabilities | 12,404,307 | 10,756,820 | |||||||||||||||||||||||||||||||||
| Stockholders' Equity | 1,840,432 | 1,816,418 | |||||||||||||||||||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 14,244,739 | 9,388 | $ | 12,573,238 | 25,930 | |||||||||||||||||||||||||||||
| Net Interest Income (FTE) | $ | 105,139 | $ | 97,771 | |||||||||||||||||||||||||||||||
Net Interest Spread (FTE) (4) | 3.14 | % | 3.22 | % | |||||||||||||||||||||||||||||||
| Net Interest Margin (FTE): | |||||||||||||||||||||||||||||||||||
| Interest Income (FTE) / Average Earning Assets | 3.52 | % | 4.38 | % | |||||||||||||||||||||||||||||||
| Interest Expense / Average Earning Assets | 0.29 | % | 0.92 | % | |||||||||||||||||||||||||||||||
Net Interest Margin (FTE) (5) | 3.23 | % | 3.46 | % | |||||||||||||||||||||||||||||||
(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. Annualized amounts are computed using a 30/360 day basis. | |||||||||||||||||||||||||||||||||||
(2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2021 and 2020. These totals equal $4,711 and $3,894 for the three months ended March 31, 2021 and 2020, respectively. | |||||||||||||||||||||||||||||||||||
(3) Non accruing loans have been included in the average balances. | |||||||||||||||||||||||||||||||||||
(4) Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities. | |||||||||||||||||||||||||||||||||||
(5) Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets. | |||||||||||||||||||||||||||||||||||