N / E / W / S R / E / L / E / A / S / E
April 25, 2013
FOR IMMEDIATE RELEASE
For more information, contact:
David L. Ortega, First Vice President/Director of Investor Relations
765-378-8937
http://www.firstmerchants.com
SOURCE: First Merchants Corporation, Muncie, Indiana
FIRST MERCHANTS CORPORATION ANNOUNCES STRONG FIRST QUARTER 2013 EARNINGS
First Merchants Corporation (NASDAQ - FRME) has reported first quarter 2013 earnings per share of $.38 compared to core earnings of $.25 during the same period in 2012. Reported earnings for the first quarter of 2012 totaled $.46 as the Corporation recorded a gain on its FDIC purchase of SCB Bank in Shelbyville, Indiana of $.21 per share. Total net income available to common shareholders equaled $11.0 million, compared to $13.2 million earned in the first quarter of 2012.
Michael C. Rechin, President and Chief Executive Officer, stated, “First quarter 2013 results exceeded our expectations primarily through the combination of improved core operating activities and the benefit from loan recoveries tied to prior period charge-offs. The $9.1 million gain related to our February 2012 FDIC purchase is hard to replace, but $6.3 million of recoveries, including $2.5 million recorded to interest income, produced an excellent quarter. Additional strength in our results came from the continuation of improvement in our credit-related metrics. Our improvements allowed for reduced provisioning while maintaining a robust loan loss reserve. Our current period earnings added to a series of consistently profitable quarters prompting our Board of Directors to approve an increase in our second quarter dividend to $0.05 per share announced on April 9, 2013.”
Total assets equaled $4.3 billion as of quarter-end and total loans were $2.9 billion. The Corporation's commercial and industrial loans and commercial real estate loans increased by 8.1 percent year-over-year as total loans increased by 3.2 percent. The Corporation's loan-to-deposit ratio is now 88 percent and the loan-to-asset ratio is 68 percent. Total non-maturity deposits increased by 9.2 percent year-over-year, as total deposits increased by less than 1 percent while the Bank focused on low-cost deposits and pricing discipline.
Net-interest income totaled $39.5 million for the quarter and net-interest margin remained strong during the quarter totaling 4.25 percent as yields on earning assets totaled 4.70 percent and the cost of supporting liabilities totaled .45 percent. When adjusted for fair value accretion of $771,000 and the interest recovery of $2.5 million, net-interest margin totaled 3.90 percent for the quarter, just six basis points less than the first quarter of 2012 total of 3.96 percent.
Non-interest income totaled $13.9 million for the quarter, an increase from the 2012 first quarter total of $13.5 million after excluding the $9.1 million gain on the FDIC modified whole bank transaction. Non-interest expense totaled $34.7 million for the quarter, a 2 percent increase over the prior year's first quarter as salary and benefits expense increased by $1.4 million. The increase in salary and benefits came from increased salary expense of $237,000, incentive compensation expense of $616,000 and benefits expense of $583,000.
Provision expense totaled $2.1 million for the first quarter of 2013, compared to $4.9 million in 2012's first quarter. Net charge-offs totaled $2.9 million for the first quarter, down from $5.4 million in the first quarter of 2012. The allowance for loan losses totaled $68.5 million, or 2.36 percent of total loans and 147 percent of non-accrual loans. Non-performing assets declined by $31.4 million, or 32% year-over-year, and now total $65.3 million.
As of March 31, 2013, the Corporation's total risk-based capital equaled 15.91 percent, Tier 1 common risk-based capital equaled 10.20 percent, and tangible common equity ratio totaled 7.88 percent. The decline in the Corporation's total risk-based capital ratio is reflective of the $22.7 million SBLF redemption as reported on Form 8-K on January 8, 2013.
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 25, 2013.
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 April 25, 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 10027147.
In order to view the web cast and presentation slides, please go to http://services.choruscall.com/links/frme130425.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).
* * * *
|
| | | | | | | |
| CONSOLIDATED BALANCE SHEETS | | | |
| (Dollars In Thousands) | March 31, |
| | 2013 | | 2012 |
| ASSETS | | | |
| Cash and cash equivalents | $ | 51,592 |
| | $ | 60,991 |
|
| Interest-bearing time deposits | 60,407 |
| | 34,290 |
|
| Investment securities | 869,563 |
| | 960,032 |
|
| Mortgage loans held for sale | 26,555 |
| | 22,138 |
|
| Loans | 2,879,542 |
| | 2,792,989 |
|
| Less: Allowance for loan losses | (68,537 | ) | | (70,369 | ) |
| Net loans | 2,811,005 |
| | 2,722,620 |
|
| Premises and equipment | 53,762 |
| | 51,541 |
|
| Federal Reserve and Federal Home Loan Bank stock | 32,777 |
| | 33,026 |
|
| Interest receivable | 15,346 |
| | 16,730 |
|
| Core deposit intangibles and goodwill | 149,142 |
| | 150,486 |
|
| Cash surrender value of life insurance | 126,098 |
| | 123,355 |
|
| Other real estate owned | 13,130 |
| | 15,628 |
|
| Tax asset, deferred and receivable | 27,597 |
| | 32,112 |
|
| Other assets | 15,856 |
| | 13,417 |
|
| TOTAL ASSETS | $ | 4,252,830 |
| | $ | 4,236,366 |
|
| LIABILITIES | | | |
| Deposits: | | | |
| Noninterest-bearing | $ | 763,965 |
| | $ | 677,643 |
|
| Interest-bearing | 2,546,843 |
| | 2,601,935 |
|
| Total Deposits | 3,310,808 |
| | 3,279,578 |
|
| Borrowings: | | | |
| Federal funds purchased | | | 10,936 |
|
| Securities sold under repurchase agreements | 161,813 |
| | 139,308 |
|
| Federal Home Loan Bank advances | 93,169 |
| | 131,496 |
|
| Subordinated debentures and term loans | 111,778 |
| | 115,969 |
|
| Total Borrowings | 366,760 |
| | 397,709 |
|
| Interest payable | 1,348 |
| | 2,094 |
|
| Other liabilities | 35,356 |
| | 29,044 |
|
| Total Liabilities | 3,714,272 |
| | 3,708,425 |
|
| 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 - 68,087 and 90,782.94 shares | 68,087 |
| | 90,783 |
|
| 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 - 28,780,609 and 28,622,586 shares | 3,598 |
| | 3,578 |
|
| Additional paid-in capital | 256,966 |
| | 255,116 |
|
| Retained earnings | 216,530 |
| | 181,664 |
|
| Accumulated other comprehensive loss | (6,748 | ) | | (3,325 | ) |
| Total Stockholders' Equity | 538,558 |
| | 527,941 |
|
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 4,252,830 |
| | $ | 4,236,366 |
|
|
| | | | | | | |
| CONSOLIDATED STATEMENTS OF INCOME | Three Months Ended |
| (Dollars In Thousands, Except Per Share Amounts) | March 31, |
| | 2013 | | 2012 |
| INTEREST INCOME | | | |
| Loans receivable: | | | |
| Taxable | $ | 37,159 |
| | $ | 35,848 |
|
| Tax-exempt | 117 |
| | 117 |
|
| Investment securities: | | | |
| Taxable | 3,618 |
| | 4,574 |
|
| Tax-exempt | 2,454 |
| | 2,562 |
|
| Deposits with financial institutions | 19 |
| | 25 |
|
| Federal Reserve and Federal Home Loan Bank stock | 371 |
| | 343 |
|
| Total Interest Income | 43,738 |
| | 43,469 |
|
| INTEREST EXPENSE | | | |
| Deposits | 2,891 |
| | 4,110 |
|
| Federal funds purchased | 11 |
| | 12 |
|
| Securities sold under repurchase agreements | 194 |
| | 295 |
|
| Federal Home Loan Bank advances | 459 |
| | 994 |
|
| Subordinated debentures and term loans | 725 |
| | 1,942 |
|
| Total Interest Expense | 4,280 |
| | 7,353 |
|
| NET INTEREST INCOME | 39,458 |
| | 36,116 |
|
| Provision for loan losses | 2,102 |
| | 4,875 |
|
| NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 37,356 |
| | 31,241 |
|
| OTHER INCOME | | | |
| Service charges on deposit accounts | 2,729 |
| | 2,819 |
|
| Fiduciary activities | 2,107 |
| | 1,983 |
|
| Other customer fees | 2,780 |
| | 2,586 |
|
| Commission income | 2,172 |
| | 1,667 |
|
| Earnings on cash surrender value of life insurance | 700 |
| | 1,378 |
|
| Net gains and fees on sales of loans | 2,378 |
| | 1,952 |
|
| Net realized gains on sales of available for sale securities | 248 |
| | 789 |
|
| Gain on FDIC modified whole bank transaction | | | 9,124 |
|
| Other income | 763 |
| | 360 |
|
| Total Other Income | 13,877 |
| | 22,658 |
|
| OTHER EXPENSES | | | |
| Salaries and employee benefits | 20,791 |
| | 19,354 |
|
| Net occupancy | 2,602 |
| | 2,651 |
|
| Equipment | 1,774 |
| | 1,805 |
|
| Marketing | 467 |
| | 442 |
|
| Outside data processing fees | 1,480 |
| | 1,376 |
|
| Printing and office supplies | 331 |
| | 267 |
|
| Core deposit amortization | 387 |
| | 469 |
|
| FDIC assessments | 744 |
| | 1,117 |
|
| Other real estate owned and credit-related expenses | 1,866 |
| | 2,186 |
|
| Other expenses | 4,258 |
| | 4,361 |
|
| Total Other Expenses | 34,700 |
| | 34,028 |
|
| INCOME BEFORE INCOME TAX | 16,533 |
| | 19,871 |
|
| Income tax expense | 4,668 |
| | 5,500 |
|
| NET INCOME | 11,865 |
| | 14,371 |
|
| Preferred stock dividends | (857 | ) | | (1,135 | ) |
| NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 11,008 |
| | $ | 13,236 |
|
| Per Share Data: | | | |
| Basic Net Income Available to Common Stockholders | $ | 0.38 |
| | $ | 0.46 |
|
| Diluted Net Income Available to Common Stockholders | $ | 0.38 |
| | $ | 0.46 |
|
| Cash Dividends Paid | $ | 0.03 |
| | $ | 0.01 |
|
| Average Diluted Shares Outstanding (in thousands) | 28,971 |
| | 28,755 |
|
|
| | | | | | | |
| FINANCIAL HIGHLIGHTS | | | |
| (Dollars in thousands) | Three Months Ended |
| | March 31, |
| | 2013 | | 2012 |
| NET CHARGE OFF'S | $ | 2,931 |
| | $ | 5,404 |
|
| | | | |
| AVERAGE BALANCES: | | | |
| Total Assets | $ | 4,248,955 |
| | $ | 4,202,955 |
|
| Total Loans | 2,910,116 |
| | 2,763,887 |
|
| Total Earning Assets | 3,843,741 |
| | 3,789,437 |
|
| Total Deposits | 3,316,711 |
| | 3,163,432 |
|
| Total Stockholders' Equity | 533,797 |
| | 517,774 |
|
| | | | |
| FINANCIAL RATIOS: | | | |
| Return on Average Assets | 1.04 | % | | 1.26 | % |
| Return on Average Stockholders' Equity | 8.25 |
| | 10.23 |
|
| Return on Average Common Stockholders' Equity | 9.47 |
| | 12.40 |
|
| Average Earning Assets to Average Assets | 90.46 |
| | 90.16 |
|
| Allowance for Loan Losses as % of Total Loans | 2.36 |
| | 2.50 |
|
| Net Charge Off's as % of Average Loans (Annualized) | 0.40 |
| | 0.78 |
|
| Average Stockholders' Equity to Average Assets | 12.56 |
| | 12.32 |
|
| Tax Equivalent Yield on Earning Assets | 4.70 |
| | 4.74 |
|
| Cost of Supporting Liabilities | 0.45 |
| | 0.78 |
|
| Net Interest Margin (FTE) on Earning Assets | 4.25 |
| | 3.96 |
|
|
| | | | | | | | | | | | | | | | | | | |
| NON-PERFORMING ASSETS | | | | | | | | | |
| (Dollars In Thousands) | March 31, | | December 31, | | September 30, | | June 30, | | March 31, |
| | 2013 | | 2012 | | 2012 | | 2012 | | 2012 |
| Non-Accrual Loans | $ | 46,761 |
| | $ | 53,399 |
| | $ | 56,999 |
| | $ | 63,127 |
| | $ | 74,456 |
|
| Renegotiated Loans | 5,445 |
| | 12,681 |
| | 6,871 |
| | 3,921 |
| | 6,695 |
|
| Non-Performing Loans (NPL) | 52,206 |
| | 66,080 |
| | 63,870 |
| | 67,048 |
| | 81,151 |
|
| Other Real Estate Owned | 13,130 |
| | 13,263 |
| | 13,780 |
| | 14,183 |
| | 15,628 |
|
| Non-Performing Assets (NPA) | 65,336 |
| | 79,343 |
| | 77,650 |
| | 81,231 |
| | 96,779 |
|
| 90+ Days Delinquent | 959 |
| | 2,037 |
| | 1,974 |
| | 665 |
| | 253 |
|
| NPAS & 90 Day Delinquent | $ | 66,295 |
| | $ | 81,380 |
| | $ | 79,624 |
| | $ | 81,896 |
| | $ | 97,032 |
|
| | | | | | | | | | |
| Loan Loss Reserve | $ | 68,537 |
| | $ | 69,366 |
| | $ | 69,493 |
| | $ | 70,143 |
| | $ | 70,369 |
|
| Quarterly Net Charge-offs | 2,931 |
| | 4,632 |
| | 5,259 |
| | 4,771 |
| | 5,404 |
|
| NPAs / Actual Assets % | 1.54 | % | | 1.84 | % | | 1.83 | % | | 1.92 | % | | 2.28 | % |
| NPAs & 90 Day / Actual Assets % | 1.56 | % | | 1.89 | % | | 1.87 | % | | 1.93 | % | | 2.29 | % |
| NPAs / Actual Loans and REO % | 2.24 | % | | 2.70 | % | | 2.70 | % | | 2.87 | % | | 3.42 | % |
| Loan Loss Reserves / Actual Loans (%) | 2.36 | % | | 2.37 | % | | 2.43 | % | | 2.49 | % | | 2.50 | % |
| Net Charge Off's as % of Average Loans (Annualized) | 0.40 | % | | 0.65 | % | | 0.74 | % | | 0.68 | % | | 0.78 | % |
|
| | | | | | | | | | | | | | | | | | | |
| CONSOLIDATED BALANCE SHEETS | | | | | | | | | |
| (Dollars In Thousands) | March 31, | | December 31, | | September 30, | | June 30, | | March 31, |
| | 2013 | | 2012 | | 2012 | | 2012 | | 2012 |
| ASSETS | | | | | | | | | |
| Cash and cash equivalents | $ | 51,592 |
| | $ | 101,460 |
| | $ | 57,027 |
| | $ | 68,493 |
| | $ | 60,991 |
|
| Interest-bearing time deposits | 60,407 |
| | 38,443 |
| | 35,324 |
| | 41,760 |
| | 34,290 |
|
| Investment securities | 869,563 |
| | 874,363 |
| | 928,716 |
| | 944,321 |
| | 960,032 |
|
| Mortgage loans held for sale | 26,555 |
| | 22,300 |
| | 27,711 |
| | 15,278 |
| | 22,138 |
|
| Loans | 2,879,542 |
| | 2,902,209 |
| | 2,836,324 |
| | 2,797,634 |
| | 2,792,989 |
|
| Less: Allowance for loan losses | (68,537 | ) | | (69,366 | ) | | (69,493 | ) | | (70,143 | ) | | (70,369 | ) |
| Net loans | 2,811,005 |
| | 2,832,843 |
| | 2,766,831 |
| | 2,727,491 |
| | 2,722,620 |
|
| Premises and equipment | 53,762 |
| | 52,749 |
| | 51,373 |
| | 51,335 |
| | 51,541 |
|
| Federal Reserve and Federal Home Loan Bank stock | 32,777 |
| | 32,785 |
| | 32,824 |
| | 33,033 |
| | 33,026 |
|
| Interest receivable | 15,346 |
| | 16,367 |
| | 17,519 |
| | 16,506 |
| | 16,730 |
|
| Core deposit intangibles and goodwill | 149,142 |
| | 149,529 |
| | 150,019 |
| | 150,006 |
| | 150,486 |
|
| Cash surrender value of life insurance | 126,098 |
| | 125,397 |
| | 124,702 |
| | 124,018 |
| | 123,355 |
|
| Other real estate owned | 13,130 |
| | 13,263 |
| | 13,780 |
| | 14,183 |
| | 15,628 |
|
| Tax asset, deferred and receivable | 27,597 |
| | 30,867 |
| | 29,344 |
| | 32,003 |
| | 32,112 |
|
| Other assets | 15,856 |
| | 14,455 |
| | 14,998 |
| | 13,996 |
| | 13,417 |
|
| TOTAL ASSETS | $ | 4,252,830 |
| | $ | 4,304,821 |
| | $ | 4,250,168 |
| | $ | 4,232,423 |
| | $ | 4,236,366 |
|
| LIABILITIES | | | | | | | | | |
| Deposits: | | | | | | | | | |
| Noninterest-bearing | 763,965 |
| | 801,597 |
| | $ | 679,818 |
| | $ | 684,101 |
| | $ | 677,643 |
|
| Interest-bearing | 2,546,843 |
| | 2,544,786 |
| | 2,514,933 |
| | 2,604,797 |
| | 2,601,935 |
|
| Total Deposits | 3,310,808 |
| | 3,346,383 |
| | 3,194,751 |
| | 3,288,898 |
| | 3,279,578 |
|
| Borrowings: | | | | | | | | | |
| Federal funds purchased | | | 18,862 |
| | 57,024 |
| | 652 |
| | 10,936 |
|
| Securities sold under repurchase agreements | 161,813 |
| | 141,828 |
| | 153,454 |
| | 160,127 |
| | 139,308 |
|
| Federal Home Loan Bank advances | 93,169 |
| | 94,238 |
| | 145,467 |
| | 96,847 |
| | 131,496 |
|
| Subordinated debentures and term loans | 111,778 |
| | 112,161 |
| | 112,169 |
| | 115,951 |
| | 115,969 |
|
| Total Borrowings | 366,760 |
| | 367,089 |
| | 468,114 |
| | 373,577 |
| | 397,709 |
|
| Interest payable | 1,348 |
| | 1,841 |
| | 1,591 |
| | 2,168 |
| | 2,094 |
|
| Other liabilities | 35,356 |
| | 37,272 |
| | 38,857 |
| | 32,104 |
| | 29,044 |
|
| Total Liabilities | 3,714,272 |
| | 3,752,585 |
| | 3,703,313 |
| | 3,696,747 |
| | 3,708,425 |
|
| 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 | 68,087 |
| | 90,783 |
| | 90,783 |
| | 90,783 |
| | 90,783 |
|
| Cumulative Preferred Stock, $1,000 par value, $1,000 liquidation value: | | | | | | | | | |
| Authorized -- 600 shares | | | | | | | | | |
| Issued and outstanding | 125 |
| | 125 |
| | 125 |
| | 125 |
| | 125 |
|
| Common Stock, $.125 stated value: | | | | | | | | | |
| Authorized -- 50,000,000 shares | | | | | | | | | |
| Issued and outstanding | 3,598 |
| | 3,587 |
| | 3,584 |
| | 3,580 |
| | 3,578 |
|
| Additional paid-in capital | 256,966 |
| | 256,843 |
| | 256,290 |
| | 255,632 |
| | 255,116 |
|
| Retained earnings | 216,530 |
| | 206,397 |
| | 198,094 |
| | 188,863 |
| | 181,664 |
|
| Accumulated other comprehensive loss | (6,748 | ) | | (5,499 | ) | | (2,021 | ) | | (3,307 | ) | | (3,325 | ) |
| Total Stockholders' Equity | 538,558 |
| | 552,236 |
| | 546,855 |
| | 535,676 |
| | 527,941 |
|
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 4,252,830 |
| | $ | 4,304,821 |
| | $ | 4,250,168 |
| | $ | 4,232,423 |
| | $ | 4,236,366 |
|
|
| | | | | | | | | | | | | | | | | | | |
| CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | |
| (Dollars In Thousands, Except Per Share Amounts) | March 31, | | December 31, | | September 30, | | June 30, | | March 31, |
| | 2013 | | 2012 | | 2012 | | 2012 | | 2012 |
| INTEREST INCOME | | | | | | | | | |
| Loans receivable: | | | | | | | | | |
| Taxable | $ | 37,159 |
| | $ | 36,085 |
| | $ | 38,160 |
| | $ | 36,652 |
| | $ | 35,848 |
|
| Tax-exempt | 117 |
| | 122 |
| | 118 |
| | 123 |
| | 117 |
|
| Investment securities: | | | | | | | | | |
| Taxable | 3,618 |
| | 3,809 |
| | 4,176 |
| | 4,468 |
| | 4,574 |
|
| Tax-exempt | 2,454 |
| | 2,544 |
| | 2,532 |
| | 2,551 |
| | 2,562 |
|
| Deposits with financial institutions | 19 |
| | 31 |
| | 16 |
| | 28 |
| | 25 |
|
| Federal Reserve and Federal Home Loan Bank stock | 371 |
| | 373 |
| | 345 |
| | 347 |
| | 343 |
|
| Total Interest Income | 43,738 |
| | 42,964 |
| | 45,347 |
| | 44,169 |
| | 43,469 |
|
| INTEREST EXPENSE | | | | | | | | | |
| Deposits | 2,891 |
| | 3,234 |
| | 3,517 |
| | 3,939 |
| | 4,110 |
|
| Federal funds purchased | 11 |
| | 7 |
| | 38 |
| | 12 |
| | 12 |
|
| Securities sold under repurchase agreements | 194 |
| | 204 |
| | 211 |
| | 197 |
| | 295 |
|
| Federal Home Loan Bank advances | 459 |
| | 501 |
| | 492 |
| | 637 |
| | 994 |
|
| Subordinated debentures and term loans | 725 |
| | 753 |
| | 1,187 |
| | 1,331 |
| | 1,942 |
|
| Total Interest Expense | 4,280 |
| | 4,699 |
| | 5,445 |
| | 6,116 |
| | 7,353 |
|
| NET INTEREST INCOME | 39,458 |
| | 38,265 |
| | 39,902 |
| | 38,053 |
| | 36,116 |
|
| Provision for loan losses | 2,102 |
| | 4,505 |
| | 4,609 |
| | 4,545 |
| | 4,875 |
|
| NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 37,356 |
| | 33,760 |
| | 35,293 |
| | 33,508 |
| | 31,241 |
|
| OTHER INCOME | | | | | | | | | |
| Service charges on deposit accounts | 2,729 |
| | 2,962 |
| | 2,913 |
| | 2,893 |
| | 2,819 |
|
| Fiduciary activities | 2,107 |
| | 1,984 |
| | 1,986 |
| | 1,938 |
| | 1,983 |
|
| Other customer fees | 2,780 |
| | 2,757 |
| | 2,740 |
| | 3,150 |
| | 2,586 |
|
| Commission income | 2,172 |
| | 1,454 |
| | 1,618 |
| | 1,485 |
| | 1,667 |
|
| Earnings on cash surrender value of life insurance | 700 |
| | 693 |
| | 685 |
| | 662 |
| | 1,378 |
|
| Net gains and fees on sales of loans | 2,378 |
| | 3,513 |
| | 2,849 |
| | 2,314 |
| | 1,952 |
|
| Net realized gains on sales of available for sale securities | 248 |
| | 255 |
| | 843 |
| | 502 |
| | 789 |
|
| Gain on FDIC modified whole bank transaction | | | | | | | | | 9,124 |
|
| Other income | 763 |
| | 588 |
| | 639 |
| | 221 |
| | 360 |
|
| Total Other Income | 13,877 |
| | 14,206 |
| | 14,273 |
| | 13,165 |
| | 22,658 |
|
| OTHER EXPENSES | | | | | | | | | |
| Salaries and employee benefits | 20,791 |
| | 20,320 |
| | 20,083 |
| | 19,641 |
| | 19,354 |
|
| Net occupancy | 2,602 |
| | 2,494 |
| | 2,568 |
| | 2,473 |
| | 2,651 |
|
| Equipment | 1,774 |
| | 1,942 |
| | 1,798 |
| | 1,656 |
| | 1,805 |
|
| Marketing | 467 |
| | 616 |
| | 536 |
| | 564 |
| | 442 |
|
| Outside data processing fees | 1,480 |
| | 1,361 |
| | 1,413 |
| | 1,506 |
| | 1,376 |
|
| Printing and office supplies | 331 |
| | 321 |
| | 287 |
| | 294 |
| | 267 |
|
| Core deposit amortization | 387 |
| | 489 |
| | 489 |
| | 480 |
| | 469 |
|
| FDIC assessments | 744 |
| | 738 |
| | 792 |
| | 862 |
| | 1,117 |
|
| Other real estate owned and credit-related expenses | 1,866 |
| | 1,766 |
| | 2,104 |
| | 2,122 |
| | 2,186 |
|
| Other expenses | 4,258 |
| | 4,456 |
| | 4,334 |
| | 4,582 |
| | 4,361 |
|
| Total Other Expenses | 34,700 |
| | 34,503 |
| | 34,404 |
| | 34,180 |
| | 34,028 |
|
| INCOME BEFORE INCOME TAX | 16,533 |
| | 13,463 |
| | 15,162 |
| | 12,493 |
| | 19,871 |
|
| Income tax expense | 4,668 |
| | 3,153 |
| | 3,926 |
| | 3,288 |
| | 5,500 |
|
| NET INCOME | 11,865 |
| | 10,310 |
| | 11,236 |
| | 9,205 |
| | 14,371 |
|
| Preferred stock dividends | (857 | ) | | (1,135 | ) | | (1,134 | ) | | (1,135 | ) | | (1,135 | ) |
| NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 11,008 |
| | $ | 9,175 |
| | $ | 10,102 |
| | $ | 8,070 |
| | $ | 13,236 |
|
| | | | | | | | | | |
| Per Share Data: | | | | | | | | | |
| Basic Net Income Available to Common Stockholders | $ | 0.38 |
| | $ | 0.32 |
| | $ | 0.35 |
| | $ | 0.29 |
| | $ | 0.46 |
|
| Diluted Net Income Available to Common Stockholders | $ | 0.38 |
| | $ | 0.32 |
| | $ | 0.35 |
| | $ | 0.28 |
| | $ | 0.46 |
|
| Cash Dividends Paid | $ | 0.03 |
| | $ | 0.03 |
| | $ | 0.03 |
| | $ | 0.03 |
| | $ | 0.01 |
|
| Average Diluted Shares Outstanding (in thousands) | 28,971 |
| | 28,930 |
| | 28,888 |
| | 28,815 |
| | 28,755 |
|
| FINANCIAL RATIOS: | | | | | | | | | |
| Return on Average Assets | 1.04 | % | | 0.85 | % | | 0.95 | % | | 0.76 | % | | 1.26 | % |
| Return on Average Stockholders' Equity | 8.25 |
| | 6.66 |
| | 7.47 |
| | 6.07 |
| | 10.23 |
|
| Return on Average Common Stockholders' Equity | 9.47 |
| | 7.97 |
| | 8.98 |
| | 7.32 |
| | 12.40 |
|
| Average Earning Assets to Average Assets | 90.46 |
| | 90.28 |
| | 90.36 |
| | 90.30 |
| | 90.16 |
|
| Allowance for Loan Losses as % of Total Loans | 2.36 |
| | 2.37 |
| | 2.43 |
| | 2.49 |
| | 2.50 |
|
| Net Charge Off's as % of Average Loans (Annualized) | 0.40 |
| | 0.65 |
| | 0.74 |
| | 0.68 |
| | 0.78 |
|
| Average Stockholders' Equity to Average Assets | 12.56 |
| | 12.84 |
| | 12.77 |
| | 12.51 |
| | 12.32 |
|
| Tax Equivalent Yield on Earning Assets | 4.70 |
| | 4.58 |
| | 4.89 |
| | 4.75 |
| | 4.74 |
|
| Cost of Supporting Liabilities | 0.45 |
| | 0.48 |
| | 0.57 |
| | 0.64 |
| | 0.78 |
|
| Net Interest Margin (FTE) on Earning Assets | 4.25 |
| | 4.10 |
| | 4.32 |
| | 4.11 |
| | 3.96 |
|
|
| | | | | | | | | | | | | | | | | | | |
| LOANS | | | | | | | | | |
| (Dollars In Thousands) | March 31, | | December 31, | | September 30, | | June 30, | | March 31, |
| | 2013 | | 2012 | | 2012 | | 2012 | | 2012 |
| Commercial and industrial loans | $ | 637,952 |
| | $ | 622,579 |
| | $ | 592,517 |
| | $ | 552,353 |
| | $ | 546,304 |
|
| Agricultural production financing and other loans to farmers | 104,284 |
| | 112,527 |
| | 107,166 |
| | 106,135 |
| | 97,165 |
|
| Real estate loans: | | | | | | | | | |
| Construction | 75,877 |
| | 98,639 |
| | 93,610 |
| | 99,588 |
| | 92,694 |
|
| Commercial and farm land | 1,280,611 |
| | 1,266,682 |
| | 1,241,054 |
| | 1,219,114 |
| | 1,229,195 |
|
| Residential | 467,629 |
| | 473,537 |
| | 475,272 |
| | 480,917 |
| | 498,354 |
|
| Home Equity | 201,767 |
| | 203,406 |
| | 204,888 |
| | 207,250 |
| | 210,564 |
|
| Individuals' loans for household and other personal expenditures | 73,314 |
| | 75,748 |
| | 77,171 |
| | 83,933 |
| | 78,711 |
|
| Lease financing receivables, net of unearned income | 2,013 |
| | 2,590 |
| | 2,970 |
| | 2,976 |
| | 3,112 |
|
| Other loans | 36,095 |
| | 46,501 |
| | 41,676 |
| | 45,368 |
| | 36,890 |
|
| Loans | 2,879,542 |
| | 2,902,209 |
| | 2,836,324 |
| | 2,797,634 |
| | 2,792,989 |
|
| Allowance for loan losses | (68,537 | ) | | (69,366 | ) | | (69,493 | ) | | (70,143 | ) | | (70,369 | ) |
| NET LOANS | $ | 2,811,005 |
| | $ | 2,832,843 |
| | $ | 2,766,831 |
| | $ | 2,727,491 |
| | $ | 2,722,620 |
|
|
| | | | | | | | | | | | | | | | | | | |
| DEPOSITS | | | | | | | | | |
| (Dollars In Thousands) | March 31, | | December 31, | | September 30, | | June 30, | | March 31, |
| | 2013 | | 2012 | | 2012 | | 2012 | | 2012 |
| Demand deposits | $ | 1,590,709 |
| | $ | 1,646,756 |
| | $ | 1,455,568 |
| | $ | 1,521,194 |
| | $ | 1,470,938 |
|
| Savings deposits | 891,061 |
| | 831,952 |
| | 837,409 |
| | 822,299 |
| | 801,935 |
|
| Certificates and other time deposits of $100,000 or more | 224,505 |
| | 236,470 |
| | 256,077 |
| | 261,156 |
| | 269,796 |
|
| Other certificates and time deposits | 481,446 |
| | 502,927 |
| | 527,304 |
| | 546,182 |
| | 566,934 |
|
| Brokered deposits | 123,087 |
| | 128,278 |
| | 118,393 |
| | 138,067 |
| | 169,975 |
|
| TOTAL DEPOSITS | $ | 3,310,808 |
| | $ | 3,346,383 |
| | $ | 3,194,751 |
| | $ | 3,288,898 |
| | $ | 3,279,578 |
|
