N / E / W / S R / E / L / E / A / S / E
July 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 IMPROVED SECOND QUARTER 2013 EARNINGS
First Merchants Corporation (NASDAQ - FRME) has reported second quarter 2013 earnings per share of $0.34 compared to $0.28 during the same period in 2012. Net income available to common stockholders increased by $1.9 million totaling $10.0 million compared to $8.1 million during the same period in 2012. Year-to-date earnings per share totaled $0.72 compared to core earnings of $0.53 in the first half of 2012. Reported earnings for the first half of 2012 totaled $0.74 as the Corporation recorded a gain on its FDIC purchase of SCB Bank in Shelbyville, Indiana of $0.21 per share in the first quarter of 2012.
Michael C. Rechin, President and Chief Executive Officer, stated, “First Merchants continues to maintain earnings momentum despite modest margin compression. Loan volume growth is steady, all credit related metrics, including non-accrual assets, continue to show improvement and core net income is progressively better quarter-after-quarter. The quality of First Merchants credit statistics when combined with our earnings strength has allowed us to improve our capital structure as evidenced by the July redemption of $34.0 million in SBLF preferred stock.”
Total assets equaled $4.3 billion as of quarter-end and loans were $2.9 billion, an increase of $122.4 million or 4.4 percent over the same period in 2012. The Corporation's commercial and industrial loans and commercial real estate loans increased by $105.4 million and $53.6 million, respectively. Residential real estate loans declined by $20.8 million during the same period as the Corporation continues to focus this line of business on fee for service mortgage loans. The Corporation's loan-to-deposit ratio is 87.6 percent and the loan-to-asset ratio is 67.3 percent.
Net-interest income totaled $36.7 million for the quarter as net-interest margin totaled 3.88 percent. Yields on earning assets totaled 4.29 percent and the cost of supporting liabilities totaled 0.41 percent. Net-interest income totaled $38.1 million during the same quarter in 2012 as net interest margin totaled 4.11 percent. Of the $1.4 million reduction in net interest income, $314,000 was related to a reduction in fair value accounting in 2013. Year-to-date net-interest income totaled $76.1 million compared to $74.2 million during the first half of 2012. The $2.5 million interest recapture recognized in the first quarter of 2013 accounted for all of the increase.
Provision expense totaled $2.0 million for the second quarter of 2013, compared to $4.5 million in 2012. Net charge-offs totaled $2.3 million for the second quarter, down from $4.8 million in the second quarter of 2012. Due to the adequacy of the allowance for loan losses, year-to-date provision expense totaled $4.1 million versus $5.3 million of net charge-off's. The allowance for loan losses totaled $68.2 million, or 2.32 percent of total loans and 175 percent of non-accrual loans. Non-performing assets declined by $26.1 million, or 32.1 percent year-over-year, and now total $55.1 million.
Non-interest income totaled $14.1 million for the quarter, an increase over the second quarter 2012 total of $13.2 million. Year-to-date non-interest income totaled $27.9 million compared to $35.8 in 2012, which included a $9.1 million gain on the FDIC modified whole bank transaction in the first quarter of 2012. Non-interest expense totaled $33.7 million for the quarter, down $438,000 from the second quarter of 2012. Year-to-date non-interest expense totaled $68.4 million up just one third of a percent from the first half of 2012.
As of June 30, 2013, the Corporation's total risk-based capital equaled 15.69 percent, Tier 1 common risk-based capital equaled 10.13 percent, and tangible common equity ratio totaled 7.74 percent.
CONFERENCE CALL
First Merchants Corporation will conduct a second quarter earnings conference call and web cast at 2:30 p.m. (ET) on Thursday, July 25, 2013.
To participate, dial (Toll Free) 888-317-6016 and reference First Merchants Corporation's second quarter earnings release. International callers please call +1 412-317-6016. A replay of the call will be available until July 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 10030162.
In order to view the web cast and presentation slides, please go to http://services.choruscall.com/links/frme130725.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) | June 30, |
| | 2013 | | 2012 |
| ASSETS | | | |
| Cash and cash equivalents | $ | 69,404 |
| | $ | 68,493 |
|
| Interest-bearing time deposits | 59,898 |
| | 41,760 |
|
| Investment securities | 908,992 |
| | 944,321 |
|
| Mortgage loans held for sale | 14,531 |
| | 15,278 |
|
| Loans | 2,920,080 |
| | 2,797,634 |
|
| Less: Allowance for loan losses | (68,202 | ) | | (70,143 | ) |
| Net loans | 2,851,878 |
| | 2,727,491 |
|
| Premises and equipment | 54,165 |
| | 51,335 |
|
| Federal Reserve and Federal Home Loan Bank stock | 32,790 |
| | 33,033 |
|
| Interest receivable | 15,186 |
| | 16,506 |
|
| Core deposit intangibles and goodwill | 148,759 |
| | 150,006 |
|
| Cash surrender value of life insurance | 126,710 |
| | 124,018 |
|
| Other real estate owned | 11,765 |
| | 14,183 |
|
| Tax asset, deferred and receivable | 30,959 |
| | 32,003 |
|
| Other assets | 13,227 |
| | 13,996 |
|
| TOTAL ASSETS | $ | 4,338,264 |
| | $ | 4,232,423 |
|
| LIABILITIES | | | |
| Deposits: | | | |
| Noninterest-bearing | $ | 741,095 |
| | $ | 684,101 |
|
| Interest-bearing | 2,591,698 |
| | 2,604,797 |
|
| Total Deposits | 3,332,793 |
| | 3,288,898 |
|
| Borrowings: | | | |
| Federal funds purchased | 57,085 |
| | 652 |
|
| Securities sold under repurchase agreements | 161,779 |
| | 160,127 |
|
| Federal Home Loan Bank advances | 92,743 |
| | 96,847 |
|
| Subordinated debentures and term loans | 111,778 |
| | 115,951 |
|
| Total Borrowings | 423,385 |
| | 373,577 |
|
| Interest payable | 1,150 |
| | 2,168 |
|
| Other liabilities | 41,643 |
| | 32,104 |
|
| Total Liabilities | 3,798,971 |
| | 3,696,747 |
|
| 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 - 28,801,848 and 28,643,264 shares | 3,600 |
| | 3,580 |
|
| Additional paid-in capital | 257,626 |
| | 255,632 |
|
| Retained earnings | 225,034 |
| | 188,863 |
|
| Accumulated other comprehensive loss | (15,179 | ) | | (3,307 | ) |
| Total Stockholders' Equity | 539,293 |
| | 535,676 |
|
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 4,338,264 |
| | $ | 4,232,423 |
|
|
| | | | | | | | | | | | | | | |
| CONSOLIDATED STATEMENTS OF INCOME | Three Months Ended | | Six Months Ended |
| (Dollars In Thousands, Except Per Share Amounts) | June 30, | | June 30, |
| | 2013 | | 2012 | | 2013 | | 2012 |
| INTEREST INCOME | | | | | | | |
| Loans receivable: | | | | | | | |
| Taxable | $ | 34,018 |
| | $ | 36,652 |
| | $ | 71,177 |
| | $ | 72,500 |
|
| Tax-exempt | 113 |
| | 123 |
| | 230 |
| | 240 |
|
| Investment securities: | | | | | | | |
| Taxable | 3,577 |
| | 4,468 |
| | 7,195 |
| | 9,042 |
|
| Tax-exempt | 2,515 |
| | 2,551 |
| | 4,969 |
| | 5,113 |
|
| Deposits with financial institutions | 62 |
| | 28 |
| | 81 |
| | 53 |
|
| Federal Reserve and Federal Home Loan Bank stock | 368 |
| | 347 |
| | 739 |
| | 690 |
|
| Total Interest Income | 40,653 |
| | 44,169 |
| | 84,391 |
| | 87,638 |
|
| INTEREST EXPENSE | | | | | | | |
| Deposits | 2,599 |
| | 3,939 |
| | 5,490 |
| | 8,049 |
|
| Federal funds purchased | 1 |
| | 12 |
| | 12 |
| | 24 |
|
| Securities sold under repurchase agreements | 208 |
| | 197 |
| | 402 |
| | 492 |
|
| Federal Home Loan Bank advances | 462 |
| | 637 |
| | 921 |
| | 1,631 |
|
| Subordinated debentures and term loans | 733 |
| | 1,331 |
| | 1,458 |
| | 3,273 |
|
| Total Interest Expense | 4,003 |
| | 6,116 |
| | 8,283 |
| | 13,469 |
|
| NET INTEREST INCOME | 36,650 |
| | 38,053 |
| | 76,108 |
| | 74,169 |
|
| Provision for loan losses | 1,997 |
| | 4,545 |
| | 4,099 |
| | 9,420 |
|
| NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 34,653 |
| | 33,508 |
| | 72,009 |
| | 64,749 |
|
| OTHER INCOME | | | | | | | |
| Service charges on deposit accounts | 2,912 |
| | 2,893 |
| | 5,641 |
| | 5,712 |
|
| Fiduciary activities | 2,264 |
| | 1,938 |
| | 4,371 |
| | 3,921 |
|
| Other customer fees | 2,816 |
| | 3,150 |
| | 5,596 |
| | 5,736 |
|
| Commission income | 1,748 |
| | 1,485 |
| | 3,920 |
| | 3,152 |
|
| Earnings on cash surrender value of life insurance | 610 |
| | 662 |
| | 1,310 |
| | 2,040 |
|
| Net gains and fees on sales of loans | 2,457 |
| | 2,314 |
| | 4,835 |
| | 4,266 |
|
| Net realized gains on sales of available for sale securities | 239 |
| | 502 |
| | 487 |
| | 1,291 |
|
| Gain on FDIC modified whole bank transaction | | |
| | | | 9,124 |
|
| Other income | 1,013 |
| | 221 |
| | 1,776 |
| | 581 |
|
| Total Other Income | 14,059 |
| | 13,165 |
| | 27,936 |
| | 35,823 |
|
| OTHER EXPENSES | | | | | | | |
| Salaries and employee benefits | 20,536 |
| | 19,641 |
| | 41,327 |
| | 38,995 |
|
| Net occupancy | 2,267 |
| | 2,473 |
| | 4,869 |
| | 5,124 |
|
| Equipment | 1,742 |
| | 1,656 |
| | 3,516 |
| | 3,461 |
|
| Marketing | 535 |
| | 564 |
| | 1,002 |
| | 1,006 |
|
| Outside data processing fees | 1,391 |
| | 1,506 |
| | 2,871 |
| | 2,882 |
|
| Printing and office supplies | 311 |
| | 294 |
| | 642 |
| | 561 |
|
| Core deposit amortization | 383 |
| | 480 |
| | 770 |
| | 949 |
|
| FDIC assessments | 674 |
| | 862 |
| | 1,418 |
| | 1,979 |
|
| Other real estate owned and credit-related expenses | 1,479 |
| | 2,122 |
| | 3,345 |
| | 4,308 |
|
| Other expenses | 4,424 |
| | 4,582 |
| | 8,682 |
| | 8,943 |
|
| Total Other Expenses | 33,742 |
| | 34,180 |
| | 68,442 |
| | 68,208 |
|
| INCOME BEFORE INCOME TAX | 14,970 |
| | 12,493 |
| | 31,503 |
| | 32,364 |
|
| Income tax expense | 4,155 |
| | 3,288 |
| | 8,823 |
| | 8,788 |
|
| NET INCOME | 10,815 |
| | 9,205 |
| | 22,680 |
| | 23,576 |
|
| Preferred stock dividends | (852 | ) | | (1,135 | ) | | (1,709 | ) | | (2,270 | ) |
| NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 9,963 |
| | $ | 8,070 |
| | $ | 20,971 |
| | $ | 21,306 |
|
| Per Share Data: | | | | | | | |
| Basic Net Income Available to Common Stockholders | $ | 0.35 |
| | $ | 0.28 |
| | $ | 0.73 |
| | $ | 0.74 |
|
| Diluted Net Income Available to Common Stockholders | $ | 0.34 |
| | $ | 0.28 |
| | $ | 0.72 |
| | $ | 0.74 |
|
| Cash Dividends Paid | $ | 0.05 |
| | $ | 0.03 |
| | $ | 0.08 |
| | $ | 0.04 |
|
| Average Diluted Shares Outstanding (in thousands) | 29,024 |
| | 28,815 |
| | 28,997 |
| | 28,782 |
|
|
| | | | | | | | | | | | | | | |
| FINANCIAL HIGHLIGHTS | | | | | | | |
| (Dollars in thousands) | Three Months Ended | | Six Months Ended |
| | June 30, | | June 30, |
| | 2013 | | 2012 | | 2013 | | 2012 |
| NET CHARGE OFF'S | $ | 2,332 |
| | $ | 4,771 |
| | $ | 5,263 |
| | $ | 10,175 |
|
| | | | | | | | |
| AVERAGE BALANCES: | | | | | | | |
| Total Assets | $ | 4,329,579 |
| | $ | 4,249,931 |
| | $ | 4,289,490 |
| | $ | 4,226,443 |
|
| Total Loans | 2,909,688 |
| | 2,801,375 |
| | 2,909,901 |
| | 2,782,631 |
|
| Total Earning Assets | 3,922,303 |
| | 3,837,738 |
| | 3,883,239 |
| | 3,813,587 |
|
| Total Deposits | 3,385,922 |
| | 3,318,065 |
| | 3,351,508 |
| | 3,240,748 |
|
| Total Stockholders' Equity | 542,921 |
| | 531,578 |
| | 538,384 |
| | 524,676 |
|
| | | | | | | | |
| FINANCIAL RATIOS: | | | | | | | |
| Return on Average Assets | 0.92 | % | | 0.76 | % | | 0.98 | % | | 1.01 | % |
| Return on Average Stockholders' Equity | 7.34 |
| | 6.07 |
| | 7.79 |
| | 8.12 |
|
| Return on Average Common Stockholders' Equity | 8.40 |
| | 7.32 |
| | 8.93 |
| | 9.82 |
|
| Average Earning Assets to Average Assets | 90.59 |
| | 90.30 |
| | 90.53 |
| | 90.23 |
|
| Allowance for Loan Losses as % of Total Loans | 2.32 |
| | 2.49 |
| | 2.32 |
| | 2.49 |
|
| Net Charge Off's as % of Average Loans (Annualized) | 0.32 |
| | 0.68 |
| | 0.36 |
| | 0.73 |
|
| Average Stockholders' Equity to Average Assets | 12.54 |
| | 12.51 |
| | 12.55 |
| | 12.41 |
|
| Tax Equivalent Yield on Earning Assets | 4.29 |
| | 4.75 |
| | 4.49 |
| | 4.75 |
|
| Cost of Supporting Liabilities | 0.41 |
| | 0.64 |
| | 0.43 |
| | 0.71 |
|
| Net Interest Margin (FTE) on Earning Assets | 3.88 |
| | 4.11 |
| | 4.06 |
| | 4.04 |
|
|
| | | | | | | | | | | | | | | | | | | |
| NON-PERFORMING ASSETS | | | | | | | | | |
| (Dollars In Thousands) | June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
| | 2013 | | 2013 | | 2012 | | 2012 | | 2012 |
| Non-Accrual Loans | $ | 38,971 |
| | $ | 46,761 |
| | $ | 53,399 |
| | $ | 56,999 |
| | $ | 63,127 |
|
| Renegotiated Loans | 4,407 |
| | 5,445 |
| | 12,681 |
| | 6,871 |
| | 3,921 |
|
| Non-Performing Loans (NPL) | 43,378 |
| | 52,206 |
| | 66,080 |
| | 63,870 |
| | 67,048 |
|
| Other Real Estate Owned | 11,765 |
| | 13,130 |
| | 13,263 |
| | 13,780 |
| | 14,183 |
|
| Non-Performing Assets (NPA) | 55,143 |
| | 65,336 |
| | 79,343 |
| | 77,650 |
| | 81,231 |
|
| 90+ Days Delinquent | 1,072 |
| | 959 |
| | 2,037 |
| | 1,974 |
| | 665 |
|
| NPAS & 90 Day Delinquent | $ | 56,215 |
| | $ | 66,295 |
| | $ | 81,380 |
| | $ | 79,624 |
| | $ | 81,896 |
|
| | | | | | | | | | |
| Loan Loss Reserve | $ | 68,202 |
| | $ | 68,537 |
| | $ | 69,366 |
| | $ | 69,493 |
| | $ | 70,143 |
|
| Quarterly Net Charge-offs | 2,332 |
| | 2,931 |
| | 4,632 |
| | 5,259 |
| | 4,771 |
|
| NPAs / Actual Assets % | 1.27 | % | | 1.54 | % | | 1.84 | % | | 1.83 | % | | 1.92 | % |
| NPAs & 90 Day / Actual Assets % | 1.30 | % | | 1.56 | % | | 1.89 | % | | 1.87 | % | | 1.93 | % |
| NPAs / Actual Loans and REO % | 1.87 | % | | 2.24 | % | | 2.70 | % | | 2.70 | % | | 2.87 | % |
| Loan Loss Reserves / Actual Loans (%) | 2.32 | % | | 2.36 | % | | 2.37 | % | | 2.43 | % | | 2.49 | % |
| Net Charge Off's as % of Average Loans (Annualized) | 0.32 | % | | 0.40 | % | | 0.65 | % | | 0.74 | % | | 0.68 | % |
|
| | | | | | | | | | | | | | | | | | | |
| CONSOLIDATED BALANCE SHEETS | | | | | | | | | |
| (Dollars In Thousands) | June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
| | 2013 | | 2013 | | 2012 | | 2012 | | 2012 |
| ASSETS | | | | | | | | | |
| Cash and cash equivalents | $ | 69,404 |
| | $ | 51,592 |
| | $ | 101,460 |
| | $ | 57,027 |
| | $ | 68,493 |
|
| Interest-bearing time deposits | 59,898 |
| | 60,407 |
| | 38,443 |
| | 35,324 |
| | 41,760 |
|
| Investment securities | 908,992 |
| | 869,563 |
| | 874,363 |
| | 928,716 |
| | 944,321 |
|
| Mortgage loans held for sale | 14,531 |
| | 26,555 |
| | 22,300 |
| | 27,711 |
| | 15,278 |
|
| Loans | 2,920,080 |
| | 2,879,542 |
| | 2,902,209 |
| | 2,836,324 |
| | 2,797,634 |
|
| Less: Allowance for loan losses | (68,202 | ) | | (68,537 | ) | | (69,366 | ) | | (69,493 | ) | | (70,143 | ) |
| Net loans | 2,851,878 |
| | 2,811,005 |
| | 2,832,843 |
| | 2,766,831 |
| | 2,727,491 |
|
| Premises and equipment | 54,165 |
| | 53,762 |
| | 52,749 |
| | 51,373 |
| | 51,335 |
|
| Federal Reserve and Federal Home Loan Bank stock | 32,790 |
| | 32,777 |
| | 32,785 |
| | 32,824 |
| | 33,033 |
|
| Interest receivable | 15,186 |
| | 15,346 |
| | 16,367 |
| | 17,519 |
| | 16,506 |
|
| Core deposit intangibles and goodwill | 148,759 |
| | 149,142 |
| | 149,529 |
| | 150,019 |
| | 150,006 |
|
| Cash surrender value of life insurance | 126,710 |
| | 126,098 |
| | 125,397 |
| | 124,702 |
| | 124,018 |
|
| Other real estate owned | 11,765 |
| | 13,130 |
| | 13,263 |
| | 13,780 |
| | 14,183 |
|
| Tax asset, deferred and receivable | 30,959 |
| | 27,597 |
| | 30,867 |
| | 29,344 |
| | 32,003 |
|
| Other assets | 13,227 |
| | 15,856 |
| | 14,455 |
| | 14,998 |
| | 13,996 |
|
| TOTAL ASSETS | $ | 4,338,264 |
| | $ | 4,252,830 |
| | $ | 4,304,821 |
| | $ | 4,250,168 |
| | $ | 4,232,423 |
|
| LIABILITIES | | | | | | | | | |
| Deposits: | | | | | | | | | |
| Noninterest-bearing | 741,095 |
| | 763,965 |
| | $ | 801,597 |
| | $ | 679,818 |
| | $ | 684,101 |
|
| Interest-bearing | 2,591,698 |
| | 2,546,843 |
| | 2,544,786 |
| | 2,514,933 |
| | 2,604,797 |
|
| Total Deposits | 3,332,793 |
| | 3,310,808 |
| | 3,346,383 |
| | 3,194,751 |
| | 3,288,898 |
|
| Borrowings: | | | | | | | | | |
| Federal funds purchased | 57,085 |
| | | | 18,862 |
| | 57,024 |
| | 652 |
|
| Securities sold under repurchase agreements | 161,779 |
| | 161,813 |
| | 141,828 |
| | 153,454 |
| | 160,127 |
|
| Federal Home Loan Bank advances | 92,743 |
| | 93,169 |
| | 94,238 |
| | 145,467 |
| | 96,847 |
|
| Subordinated debentures and term loans | 111,778 |
| | 111,778 |
| | 112,161 |
| | 112,169 |
| | 115,951 |
|
| Total Borrowings | 423,385 |
| | 366,760 |
| | 367,089 |
| | 468,114 |
| | 373,577 |
|
| Interest payable | 1,150 |
| | 1,348 |
| | 1,841 |
| | 1,591 |
| | 2,168 |
|
| Other liabilities | 41,643 |
| | 35,356 |
| | 37,272 |
| | 38,857 |
| | 32,104 |
|
| Total Liabilities | 3,798,971 |
| | 3,714,272 |
| | 3,752,585 |
| | 3,703,313 |
| | 3,696,747 |
|
| 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 |
| | 68,087 |
| | 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 | 3,600 |
| | 3,598 |
| | 3,587 |
| | 3,584 |
| | 3,580 |
|
| Additional paid-in capital | 257,626 |
| | 256,966 |
| | 256,843 |
| | 256,290 |
| | 255,632 |
|
| Retained earnings | 225,034 |
| | 216,530 |
| | 206,397 |
| | 198,094 |
| | 188,863 |
|
| Accumulated other comprehensive loss | (15,179 | ) | | (6,748 | ) | | (5,499 | ) | | (2,021 | ) | | (3,307 | ) |
| Total Stockholders' Equity | 539,293 |
| | 538,558 |
| | 552,236 |
| | 546,855 |
| | 535,676 |
|
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 4,338,264 |
| | $ | 4,252,830 |
| | $ | 4,304,821 |
| | $ | 4,250,168 |
| | $ | 4,232,423 |
|
|
| | | | | | | | | | | | | | | | | | | |
| CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | |
| (Dollars In Thousands, Except Per Share Amounts) | June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
| | 2013 | | 2013 | | 2012 | | 2012 | | 2012 |
| INTEREST INCOME | | | | | | | | | |
| Loans receivable: | | | | | | | | | |
| Taxable | $ | 34,018 |
| | $ | 37,159 |
| | $ | 36,085 |
| | $ | 38,160 |
| | $ | 36,652 |
|
| Tax-exempt | 113 |
| | 117 |
| | 122 |
| | 118 |
| | 123 |
|
| Investment securities: | | | | | | | | | |
| Taxable | 3,577 |
| | 3,618 |
| | 3,809 |
| | 4,176 |
| | 4,468 |
|
| Tax-exempt | 2,515 |
| | 2,454 |
| | 2,544 |
| | 2,532 |
| | 2,551 |
|
| Deposits with financial institutions | 62 |
| | 19 |
| | 31 |
| | 16 |
| | 28 |
|
| Federal Reserve and Federal Home Loan Bank stock | 368 |
| | 371 |
| | 373 |
| | 345 |
| | 347 |
|
| Total Interest Income | 40,653 |
| | 43,738 |
| | 42,964 |
| | 45,347 |
| | 44,169 |
|
| INTEREST EXPENSE | | | | | | | | | |
| Deposits | 2,599 |
| | 2,891 |
| | 3,234 |
| | 3,517 |
| | 3,939 |
|
| Federal funds purchased | 1 |
| | 11 |
| | 7 |
| | 38 |
| | 12 |
|
| Securities sold under repurchase agreements | 208 |
| | 194 |
| | 204 |
| | 211 |
| | 197 |
|
| Federal Home Loan Bank advances | 462 |
| | 459 |
| | 501 |
| | 492 |
| | 637 |
|
| Subordinated debentures and term loans | 733 |
| | 725 |
| | 753 |
| | 1,187 |
| | 1,331 |
|
| Total Interest Expense | 4,003 |
| | 4,280 |
| | 4,699 |
| | 5,445 |
| | 6,116 |
|
| NET INTEREST INCOME | 36,650 |
| | 39,458 |
| | 38,265 |
| | 39,902 |
| | 38,053 |
|
| Provision for loan losses | 1,997 |
| | 2,102 |
| | 4,505 |
| | 4,609 |
| | 4,545 |
|
| NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 34,653 |
| | 37,356 |
| | 33,760 |
| | 35,293 |
| | 33,508 |
|
| OTHER INCOME | | | | | | | | | |
| Service charges on deposit accounts | 2,912 |
| | 2,729 |
| | 2,962 |
| | 2,913 |
| | 2,893 |
|
| Fiduciary activities | 2,264 |
| | 2,107 |
| | 1,984 |
| | 1,986 |
| | 1,938 |
|
| Other customer fees | 2,816 |
| | 2,780 |
| | 2,757 |
| | 2,740 |
| | 3,150 |
|
| Commission income | 1,748 |
| | 2,172 |
| | 1,454 |
| | 1,618 |
| | 1,485 |
|
| Earnings on cash surrender value of life insurance | 610 |
| | 700 |
| | 693 |
| | 685 |
| | 662 |
|
| Net gains and fees on sales of loans | 2,457 |
| | 2,378 |
| | 3,513 |
| | 2,849 |
| | 2,314 |
|
| Net realized gains on sales of available for sale securities | 239 |
| | 248 |
| | 255 |
| | 843 |
| | 502 |
|
| Other income | 1,013 |
| | 763 |
| | 588 |
| | 639 |
| | 221 |
|
| Total Other Income | 14,059 |
| | 13,877 |
| | 14,206 |
| | 14,273 |
| | 13,165 |
|
| OTHER EXPENSES | | | | | | | | | |
| Salaries and employee benefits | 20,536 |
| | 20,791 |
| | 20,320 |
| | 20,083 |
| | 19,641 |
|
| Net occupancy | 2,267 |
| | 2,602 |
| | 2,494 |
| | 2,568 |
| | 2,473 |
|
| Equipment | 1,742 |
| | 1,774 |
| | 1,942 |
| | 1,798 |
| | 1,656 |
|
| Marketing | 535 |
| | 467 |
| | 616 |
| | 536 |
| | 564 |
|
| Outside data processing fees | 1,391 |
| | 1,480 |
| | 1,361 |
| | 1,413 |
| | 1,506 |
|
| Printing and office supplies | 311 |
| | 331 |
| | 321 |
| | 287 |
| | 294 |
|
| Core deposit amortization | 383 |
| | 387 |
| | 489 |
| | 489 |
| | 480 |
|
| FDIC assessments | 674 |
| | 744 |
| | 738 |
| | 792 |
| | 862 |
|
| Other real estate owned and credit-related expenses | 1,479 |
| | 1,866 |
| | 1,766 |
| | 2,104 |
| | 2,122 |
|
| Other expenses | 4,424 |
| | 4,258 |
| | 4,456 |
| | 4,334 |
| | 4,582 |
|
| Total Other Expenses | 33,742 |
| | 34,700 |
| | 34,503 |
| | 34,404 |
| | 34,180 |
|
| INCOME BEFORE INCOME TAX | 14,970 |
| | 16,533 |
| | 13,463 |
| | 15,162 |
| | 12,493 |
|
| Income tax expense | 4,155 |
| | 4,668 |
| | 3,153 |
| | 3,926 |
| | 3,288 |
|
| NET INCOME | 10,815 |
| | 11,865 |
| | 10,310 |
| | 11,236 |
| | 9,205 |
|
| Preferred stock dividends | (852 | ) | | (857 | ) | | (1,135 | ) | | (1,134 | ) | | (1,135 | ) |
| NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 9,963 |
| | $ | 11,008 |
| | $ | 9,175 |
| | $ | 10,102 |
| | $ | 8,070 |
|
| | | | | | | | | | |
| Per Share Data: | | | | | | | | | |
| Basic Net Income Available to Common Stockholders | $ | 0.35 |
| | $ | 0.38 |
| | $ | 0.32 |
| | $ | 0.35 |
| | $ | 0.29 |
|
| Diluted Net Income Available to Common Stockholders | $ | 0.34 |
| | $ | 0.38 |
| | $ | 0.32 |
| | $ | 0.35 |
| | $ | 0.28 |
|
| Cash Dividends Paid | $ | 0.05 |
| | $ | 0.03 |
| | $ | 0.03 |
| | $ | 0.03 |
| | $ | 0.03 |
|
| Average Diluted Shares Outstanding (in thousands) | 29,024 |
| | 28,971 |
| | 28,930 |
| | 28,888 |
| | 28,815 |
|
| FINANCIAL RATIOS: | | | | | | | | | |
| Return on Average Assets | 0.92 | % | | 1.04 | % | | 0.85 | % | | 0.95 | % | | 0.76 | % |
| Return on Average Stockholders' Equity | 7.34 |
| | 8.25 |
| | 6.66 |
| | 7.47 |
| | 6.07 |
|
| Return on Average Common Stockholders' Equity | 8.40 |
| | 9.47 |
| | 7.97 |
| | 8.98 |
| | 7.32 |
|
| Average Earning Assets to Average Assets | 90.59 |
| | 90.46 |
| | 90.28 |
| | 90.36 |
| | 90.30 |
|
| Allowance for Loan Losses as % of Total Loans | 2.32 |
| | 2.36 |
| | 2.37 |
| | 2.43 |
| | 2.49 |
|
| Net Charge Off's as % of Average Loans (Annualized) | 0.32 |
| | 0.40 |
| | 0.65 |
| | 0.74 |
| | 0.68 |
|
| Average Stockholders' Equity to Average Assets | 12.54 |
| | 12.56 |
| | 12.84 |
| | 12.77 |
| | 12.51 |
|
| Tax Equivalent Yield on Earning Assets | 4.29 |
| | 4.70 |
| | 4.58 |
| | 4.89 |
| | 4.75 |
|
| Cost of Supporting Liabilities | 0.41 |
| | 0.45 |
| | 0.48 |
| | 0.57 |
| | 0.64 |
|
| Net Interest Margin (FTE) on Earning Assets | 3.88 |
| | 4.25 |
| | 4.10 |
| | 4.32 |
| | 4.11 |
|
|
| | | | | | | | | | | | | | | | | | | |
| LOANS | | | | | | | | | |
| (Dollars In Thousands) | June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
| | 2013 | | 2013 | | 2012 | | 2012 | | 2012 |
| Commercial and industrial loans | $ | 657,764 |
| | $ | 637,952 |
| | $ | 622,579 |
| | $ | 592,517 |
| | $ | 552,353 |
|
| Agricultural production financing and other loans to farmers | 105,175 |
| | 104,284 |
| | 112,527 |
| | 107,166 |
| | 106,135 |
|
| Real estate loans: | | | | | | | | | |
| Construction | 101,909 |
| | 75,877 |
| | 98,639 |
| | 93,610 |
| | 99,588 |
|
| Commercial and farmland | 1,272,761 |
| | 1,280,611 |
| | 1,266,682 |
| | 1,241,054 |
| | 1,219,114 |
|
| Residential | 460,108 |
| | 467,629 |
| | 473,537 |
| | 475,272 |
| | 480,917 |
|
| Home Equity | 203,788 |
| | 201,767 |
| | 203,406 |
| | 204,888 |
| | 207,250 |
|
| Individuals' loans for household and other personal expenditures | 79,258 |
| | 73,314 |
| | 75,748 |
| | 77,171 |
| | 83,933 |
|
| Lease financing receivables, net of unearned income | 1,828 |
| | 2,013 |
| | 2,590 |
| | 2,970 |
| | 2,976 |
|
| Other loans | 37,489 |
| | 36,095 |
| | 46,501 |
| | 41,676 |
| | 45,368 |
|
| Loans | 2,920,080 |
| | 2,879,542 |
| | 2,902,209 |
| | 2,836,324 |
| | 2,797,634 |
|
| Allowance for loan losses | (68,202 | ) | | (68,537 | ) | | (69,366 | ) | | (69,493 | ) | | (70,143 | ) |
| NET LOANS | $ | 2,851,878 |
| | $ | 2,811,005 |
| | $ | 2,832,843 |
| | $ | 2,766,831 |
| | $ | 2,727,491 |
|
|
| | | | | | | | | | | | | | | | | | | |
| DEPOSITS | | | | | | | | | |
| (Dollars In Thousands) | June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
| | 2013 | | 2013 | | 2012 | | 2012 | | 2012 |
| Demand deposits | $ | 1,648,712 |
| | $ | 1,590,709 |
| | $ | 1,646,756 |
| | $ | 1,455,568 |
| | $ | 1,521,194 |
|
| Savings deposits | 916,481 |
| | 891,061 |
| | 831,952 |
| | 837,409 |
| | 822,299 |
|
| Certificates and other time deposits of $100,000 or more | 205,467 |
| | 224,505 |
| | 236,470 |
| | 256,077 |
| | 261,156 |
|
| Other certificates and time deposits | 448,885 |
| | 481,446 |
| | 502,927 |
| | 527,304 |
| | 546,182 |
|
| Brokered deposits | 113,248 |
| | 123,087 |
| | 128,278 |
| | 118,393 |
| | 138,067 |
|
| TOTAL DEPOSITS | $ | 3,332,793 |
| | $ | 3,310,808 |
| | $ | 3,346,383 |
| | $ | 3,194,751 |
| | $ | 3,288,898 |
|
