N / E / W / S R / E / L / E / A / S / E
January 27, 2015
FOR IMMEDIATE RELEASE
For more information, contact:
David L. Ortega, First Vice President/Director of Investor Relations
765-378-8937
http://www.firstmerchants.com
SOURCE: First Merchants Corporation, Muncie, Indiana
FIRST MERCHANTS CORPORATION ANNOUNCES RECORD 2014 NET INCOME
First Merchants Corporation (NASDAQ - FRME) has recorded 2014 record net income of $60.2 million, an increase of $18 million over 2013 net income of $42.2 million. Earnings per share totaled $1.65, an increase of $.24 and 17 percent over 2013 earnings per share of $1.41.
Net income in the 4th quarter of 2014 totaled $15.3 million compared to $11.2 million in the 4th quarter of 2013. Earnings per share for the 4th quarter of 2014 increased by 21 percent totaling $.41, compared to $.34 per share in the 4th quarter of 2013.
Michael C. Rechin, President and Chief Executive Officer, stated, “Our 4th quarter results capped off a very productive and profitable 2014 for First Merchants. Our goal is to improve operating leverage independent of the interest rate environment. Our 2014 results evidence our commitment to execute on organic growth while adding franchise additive acquisitions. During 2014, we fully incorporated Citizens Financial Bank and its attractive marketplace into our company. In 2015, we expect similar strong results through the integration of Community Bank of Noblesville, having closed the transaction in November 2014. The recent announcing of the agreement to acquire Cooper State Bank in Columbus, Ohio, complements our prior acquisitions in fortifying our best growth markets. Our management is focused on achieving additional prudent growth and our overall 2015 plan.”
Total assets equaled $5.8 billion as of year-end and total loans were $3.9 billion, an increase of $292 million, or 8 percent over the same period in 2013. Of the increase, $147 million was the result of organic growth and $145 million resulted from the acquisition of Community Bank of Noblesville in November of 2014. Total deposits equaled $4.6 billion as of year-end and increased by $409 million or 9.7 percent as Community Bank of Noblesville accounted for $228 million. Borrowings declined by $111 million during the year and tangible equity increased by $77 million or 17.6 percent. Tangible book value per share increased by $1.48, or 12.2 percent, to $13.65 per share as of year-end 2014 up from $12.17 as of year-end 2013.
Net-interest income totaled $187 million in 2014 and net-interest margin totaled 3.91 percent as yields on earning assets totaled 4.35 percent offset by the cost of supporting liabilities which totaled .44 percent. When normalized for fair value accretion income of $8.9 million in 2014 and $2.2 million in 2013, net interest margin totaled 3.73 percent in 2014 compared to 3.94 percent in 2013.
Non-interest income totaled $65.7 million in 2014 compared to $54.8 million in 2013. Non-interest expense totaled $168.6 million in 2014 compared to $143.2 million in 2013. The significant variances in both non-interest income and non-interest expenses are primarily due to the acquisition of Citizens Financial Bank in November of 2013.
Provision expense totaled $2.6 million in 2014 and net charge-offs totaled $6.5 million. In 2013, provision expense totaled $6.6 million and net charge-offs totaled $8.1 million. The December 31, 2014 allowance for loan losses totaled $64 million and our remaining fair value mark totals $43.2 million including $8.8 million related to Community Bank of Noblesville loans. The December 31, 2013 allowance for loan losses totaled $67.9 million and our remaining fair value mark totaled $46.1 million. Non-performing assets declined from $81.7 million in 2013 to $70.1 million including the fourth quarter addition of $12.4 million related to Community Bank of Noblesville.
As of December 31, 2014, the Corporation's total risk-based capital equaled 15.34 percent, Tier 1 common risk-based capital equaled 12.63 percent and tangible common equity ratio totaled 9.16 percent.
CONFERENCE CALL
First Merchants Corporation will conduct a fourth quarter earnings conference call and web cast at 2:30 p.m. (ET) on Tuesday, January 27, 2015.
To participate, dial (Toll Free) 877-507-0578 and reference First Merchants Corporation's fourth quarter earnings release. International callers please call +1 412-317-1073. A replay of the call will be available until January 27, 2016. 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 10058411.
In order to view the web cast and presentation slides, please go to http://services.choruscall.com/links/frme150127.html during the time of the call.
During the call, Forward-Looking Statements about the relative business outlook may be made. These Forward-Looking Statements and all other statements made during the call that do not concern historical facts, are subject to risks and uncertainties that may materially affect actual results.
Specific Forward-Looking Statements include, but are not limited to, any indications regarding the Financial Services industry, the economy and future growth of the balance sheet or income statement.
Detailed financial results are reported on the attached pages.
About First Merchants Corporation
First Merchants Corporation is a financial holding company headquartered in Muncie, Indiana. The Corporation is comprised of First Merchants Bank, N.A., which also operates as Lafayette Bank & Trust, Commerce National Bank, and First Merchants Trust Company as divisions of First Merchants Bank, N.A. First Merchants Corporation also operates First Merchants Insurance Group, a full-service property casualty, personal lines, and healthcare insurance agency.
First Merchants Corporation’s common stock is traded on the NASDAQ Global Select Market System under the symbol FRME. Quotations are carried in daily newspapers and can be found on the company’s Internet web page (http://www.firstmerchants.com).
FIRST MERCHANTS and the Shield Logo are federally registered trademarks of First Merchants Corporation.
* * * *
|
| | | | | | | |
| CONSOLIDATED BALANCE SHEETS | | | |
| (Dollars In Thousands) | December 31, |
| | 2014 | | 2013 |
| ASSETS | | | |
| Cash and cash equivalents | $ | 118,616 |
| | $ | 109,434 |
|
| Interest-bearing time deposits | 47,520 |
| | 55,069 |
|
| Investment securities | 1,180,631 |
| | 1,095,579 |
|
| Loans held for sale | 7,235 |
| | 5,331 |
|
| Loans | 3,924,865 |
| | 3,632,409 |
|
| Less: Allowance for loan losses | (63,964 | ) | | (67,870 | ) |
| Net loans | 3,860,901 |
| | 3,564,539 |
|
| Premises and equipment | 77,691 |
| | 74,454 |
|
| Federal Reserve and Federal Home Loan Bank stock | 41,353 |
| | 38,990 |
|
| Interest receivable | 19,984 |
| | 18,672 |
|
| Core deposit intangibles and goodwill | 218,755 |
| | 202,766 |
|
| Cash surrender value of life insurance | 169,424 |
| | 164,571 |
|
| Other real estate owned | 19,293 |
| | 22,246 |
|
| Tax asset, deferred and receivable | 41,960 |
| | 56,614 |
|
| Other assets | 20,764 |
| | 28,997 |
|
| TOTAL ASSETS | $ | 5,824,127 |
| | $ | 5,437,262 |
|
| LIABILITIES | | | |
| Deposits: | | | |
| Noninterest-bearing | $ | 1,070,859 |
| | $ | 930,772 |
|
| Interest-bearing | 3,569,835 |
| | 3,300,696 |
|
| Total Deposits | 4,640,694 |
| | 4,231,468 |
|
| Borrowings: | | | |
| Federal funds purchased | 15,381 |
| | 125,645 |
|
| Securities sold under repurchase agreements | 124,539 |
| | 148,672 |
|
| Federal Home Loan Bank advances | 145,264 |
| | 122,140 |
|
| Subordinated debentures and term loans | 126,810 |
| | 126,807 |
|
| Total Borrowings | 411,994 |
| | 523,264 |
|
| Interest payable | 3,201 |
| | 1,771 |
|
| Other liabilities | 41,411 |
| | 45,836 |
|
| Total Liabilities | 5,097,300 |
| | 4,802,339 |
|
| STOCKHOLDERS' EQUITY | | | |
| Cumulative Preferred Stock, $1,000 par value, $1,000 liquidation value: | | | |
| Authorized -- 600 shares | | | |
| Issued and outstanding - 125 shares | 125 |
| | 125 |
|
| Common Stock, $.125 stated value: | | | |
| Authorized -- 50,000,000 shares | | | |
| Issued and outstanding - 37,669,948 and 35,921,761 shares | 4,709 |
| | 4,490 |
|
| Additional paid-in capital | 431,220 |
| | 393,783 |
|
| Retained earnings | 292,403 |
| | 242,935 |
|
| Accumulated other comprehensive loss | (1,630 | ) | | (6,410 | ) |
| Total Stockholders' Equity | 726,827 |
| | 634,923 |
|
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 5,824,127 |
| | $ | 5,437,262 |
|
|
| | | | | | | | | | | | | | | |
| CONSOLIDATED STATEMENTS OF INCOME | Three Months Ended | | Twelve Months Ended |
| (Dollars In Thousands, Except Per Share Amounts) | December 31, | | December 31, |
| | 2014 | | 2013 | | 2014 | | 2013 |
| INTEREST INCOME | | | | | | | |
| Loans receivable: | | | | | | | |
| Taxable | $ | 43,710 |
| | $ | 38,027 |
| | $ | 172,039 |
| | $ | 142,752 |
|
| Tax-exempt | 147 |
| | 78 |
| | 327 |
| | 393 |
|
| Investment securities: | | | | | | | |
| Taxable | 4,980 |
| | 4,143 |
| | 19,882 |
| | 15,214 |
|
| Tax-exempt | 3,692 |
| | 3,020 |
| | 14,383 |
| | 10,829 |
|
| Deposits with financial institutions | 48 |
| | 59 |
| | 124 |
| | 158 |
|
| Federal Reserve and Federal Home Loan Bank stock | 476 |
| | 380 |
| | 2,124 |
| | 1,488 |
|
| Total Interest Income | 53,053 |
| | 45,707 |
| | 208,879 |
| | 170,834 |
|
| INTEREST EXPENSE | | | | | | | |
| Deposits | 3,402 |
| | 2,350 |
| | 11,678 |
| | 10,053 |
|
| Federal funds purchased | 3 |
| | 18 |
| | 177 |
| | 102 |
|
| Securities sold under repurchase agreements | 72 |
| | 193 |
| | 529 |
| | 787 |
|
| Federal Home Loan Bank advances | 750 |
| | 669 |
| | 2,842 |
| | 2,096 |
|
| Subordinated debentures and term loans | 1,666 |
| | 1,342 |
| | 6,616 |
| | 3,531 |
|
| Total Interest Expense | 5,893 |
| | 4,572 |
| | 21,842 |
| | 16,569 |
|
| NET INTEREST INCOME | 47,160 |
| | 41,135 |
| | 187,037 |
| | 154,265 |
|
| Provision for loan losses | 960 |
| | 1,016 |
| | 2,560 |
| | 6,648 |
|
| NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 46,200 |
| | 40,119 |
| | 184,477 |
| | 147,617 |
|
| OTHER INCOME | | | | | | | |
| Service charges on deposit accounts | 3,979 |
| | 3,639 |
| | 15,747 |
| | 12,400 |
|
| Fiduciary activities | 2,242 |
| | 2,237 |
| | 8,966 |
| | 8,594 |
|
| Other customer fees | 3,926 |
| | 3,371 |
| | 15,699 |
| | 11,866 |
|
| Commission income | 1,534 |
| | 1,585 |
| | 7,411 |
| | 7,141 |
|
| Earnings on cash surrender value of life insurance | 734 |
| | 692 |
| | 3,659 |
| | 2,613 |
|
| Net gains and fees on sales of loans | 1,559 |
| | 1,003 |
| | 4,899 |
| | 7,511 |
|
| Net realized gains on sales of available for sale securities | 1,246 |
| |
| | 3,581 |
| | 487 |
|
| Other income | 1,034 |
| | 2,546 |
| | 5,705 |
| | 4,197 |
|
| Total Other Income | 16,254 |
| | 15,073 |
| | 65,667 |
| | 54,809 |
|
| OTHER EXPENSES | | | | | | | |
| Salaries and employee benefits | 23,595 |
| | 23,470 |
| | 96,499 |
| | 85,413 |
|
| Net occupancy | 3,288 |
| | 2,992 |
| | 13,831 |
| | 10,291 |
|
| Equipment | 2,315 |
| | 2,369 |
| | 9,337 |
| | 7,737 |
|
| Marketing | 836 |
| | 675 |
| | 3,464 |
| | 2,236 |
|
| Outside data processing fees | 1,592 |
| | 1,205 |
| | 7,315 |
| | 5,591 |
|
| Printing and office supplies | 364 |
| | 378 |
| | 1,565 |
| | 1,340 |
|
| Core deposit amortization | 669 |
| | 496 |
| | 2,445 |
| | 1,649 |
|
| FDIC assessments | 895 |
| | 767 |
| | 3,738 |
| | 2,862 |
|
| Other real estate owned and foreclosure expenses | 1,055 |
| | 1,668 |
| | 8,043 |
| | 6,661 |
|
| Professional and other outside services | 3,633 |
| | 3,361 |
| | 8,116 |
| | 8,297 |
|
| Other expenses | 3,435 |
| | 3,177 |
| | 14,239 |
| | 11,142 |
|
| Total Other Expenses | 41,677 |
| | 40,558 |
| | 168,592 |
| | 143,219 |
|
| INCOME BEFORE INCOME TAX | 20,777 |
| | 14,634 |
| | 81,552 |
| | 59,207 |
|
| Income tax expense | 5,517 |
| | 3,187 |
| | 21,390 |
| | 14,677 |
|
| NET INCOME | 15,260 |
| | 11,447 |
| | 60,162 |
| | 44,530 |
|
| Preferred stock dividends |
| | (241 | ) | | | | (2,380 | ) |
| NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 15,260 |
| | $ | 11,206 |
| | $ | 60,162 |
| | $ | 42,150 |
|
| Per Share Data: | | | | | | | |
| Basic Net Income Available to Common Stockholders | $ | 0.41 |
| | $ | 0.34 |
| | $ | 1.66 |
| | $ | 1.42 |
|
| Diluted Net Income Available to Common Stockholders | $ | 0.41 |
| | $ | 0.34 |
| | $ | 1.65 |
| | $ | 1.41 |
|
| Cash Dividends Paid | $ | 0.08 |
| | $ | 0.05 |
| | $ | 0.29 |
| | $ | 0.18 |
|
| Average Diluted Shares Outstanding (in thousands) | 37,323 |
| | 32,913 |
| | 36,555 |
| | 30,008 |
|
|
| | | | | | | | | | | | | | | |
| FINANCIAL HIGHLIGHTS | | | | | | | |
| (Dollars in thousands) | Three Months Ended | | Twelve Months Ended |
| | December 31, | | December 31, |
| | 2014 | | 2013 | | 2014 | | 2013 |
| NET CHARGE OFF'S | $ | 2,592 |
| | $ | (630 | ) | | $ | 6,466 |
| | $ | 8,144 |
|
| |
| |
| |
| |
|
| AVERAGE BALANCES: |
| |
| |
| |
|
| Total Assets | $ | 5,782,257 |
| | $ | 4,950,274 |
| | $ | 5,571,354 |
| | $ | 4,455,411 |
|
| Total Loans | 3,867,009 |
| | 3,292,993 |
| | 3,730,080 |
| | 3,008,555 |
|
| Total Earning Assets | 5,175,943 |
| | 4,409,496 |
| | 4,985,338 |
| | 4,017,247 |
|
| Total Deposits | 4,582,944 |
| | 3,860,452 |
| | 4,363,955 |
| | 3,465,640 |
|
| Total Stockholders' Equity | 713,533 |
| | 576,157 |
| | 675,295 |
| | 540,255 |
|
| | | | | | | | |
| FINANCIAL RATIOS: | | | | | | | |
| Return on Average Assets | 1.06 | % | | 0.91 | % | | 1.08 | % | | 0.95 | % |
| Return on Average Stockholders' Equity | 8.55 |
| | 7.78 |
| | 8.91 |
| | 7.80 |
|
| Return on Average Common Stockholders' Equity | 8.56 |
| | 8.05 |
| | 8.91 |
| | 8.55 |
|
| Average Earning Assets to Average Assets | 89.51 |
| | 89.08 |
| | 89.48 |
| | 90.17 |
|
| Allowance for Loan Losses as % of Total Loans | 1.63 |
| | 1.87 |
| | 1.63 |
| | 1.87 |
|
| Net Charge Off's as % of Average Loans (Annualized) | 0.27 |
| | (0.08 | ) | | 0.17 |
| | 0.27 |
|
| Average Stockholders' Equity to Average Assets | 12.34 |
| | 11.64 |
| | 12.12 |
| | 12.13 |
|
| Tax Equivalent Yield on Earning Assets | 4.26 |
| | 4.30 |
| | 4.35 |
| | 4.40 |
|
| Cost of Supporting Liabilities | 0.46 |
| | 0.41 |
| | 0.44 |
| | 0.41 |
|
| Net Interest Margin (FTE) on Earning Assets | 3.80 |
| | 3.89 |
| | 3.91 |
| | 3.99 |
|
| Tangible Book Value Per Share | $ | 13.65 |
| | $ | 12.17 |
| | $ | 13.65 |
| | $ | 12.17 |
|
|
| | | | | | | | | | | | | | | | | | | |
| NON-PERFORMING ASSETS | | | | | | | | | |
| (Dollars In Thousands) | December 31, | | September 30, | | June 30, | | March 31, | | December 31, |
| | 2014 | | 2014 | | 2014 | | 2014 | | 2013 |
| Non-Accrual Loans | $ | 48,789 |
| | $ | 49,104 |
| | $ | 51,289 |
| | $ | 55,686 |
| | $ | 56,402 |
|
| Renegotiated Loans | 1,992 |
| | 1,171 |
| | 1,359 |
| | 378 |
| | 3,048 |
|
| Non-Performing Loans (NPL) | 50,781 |
| | 50,275 |
| | 52,648 |
| | 56,064 |
| | 59,450 |
|
| Other Real Estate Owned | 19,293 |
| | 14,540 |
| | 18,621 |
| | 21,077 |
| | 22,246 |
|
| Non-Performing Assets (NPA) | 70,074 |
| | 64,815 |
| | 71,269 |
| | 77,141 |
| | 81,696 |
|
| 90+ Days Delinquent | 4,663 |
| | 831 |
| | 1,135 |
| | 1,709 |
| | 1,350 |
|
| NPAs & 90 Day Delinquent | $ | 74,737 |
| | $ | 65,646 |
| | $ | 72,404 |
| | $ | 78,850 |
| | $ | 83,046 |
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
| Loan Loss Reserve | $ | 63,964 |
| | $ | 65,596 |
| | $ | 68,367 |
| | $ | 69,583 |
| | $ | 67,870 |
|
| Quarterly Net Charge-offs | 2,592 |
| | 4,371 |
| | 1,216 |
| | (1,713 | ) | | (630 | ) |
| NPAs / Actual Assets % | 1.20 | % | | 1.16 | % | | 1.27 | % | | 1.41 | % | | 1.50 | % |
| NPAs & 90 Day / Actual Assets % | 1.28 | % | | 1.17 | % | | 1.29 | % | | 1.45 | % | | 1.53 | % |
| NPAs / Actual Loans and OREO % | 1.77 | % | | 1.71 | % | | 1.90 | % | | 2.12 | % | | 2.23 | % |
| Loan Loss Reserves / Actual Loans (%) | 1.63 | % | | 1.74 | % | | 1.83 | % | | 1.92 | % | | 1.87 | % |
| Net Charge Off's as % of Average Loans (Annualized) | 0.27 | % | | 0.47 | % | | 0.13 | % | | (0.19 | )% | | (0.08 | )% |
|
| | | | | | | | | | | | | | | | | | | |
| CONSOLIDATED BALANCE SHEETS | | | | | | | | | |
| (Dollars In Thousands) | December 31, | | September 30, | | June 30, | | March 31, | | December 31, |
| | 2014 | | 2014 | | 2014 | | 2014 | | 2013 |
| ASSETS |
| |
| |
| |
| |
|
| Cash and cash equivalents | $ | 118,616 |
| | $ | 74,237 |
| | $ | 115,891 |
| | $ | 112,920 |
| | $ | 109,434 |
|
| Interest-bearing time deposits | 47,520 |
| | 24,171 |
| | 27,856 |
| | 37,078 |
| | 55,069 |
|
| Investment securities | 1,180,631 |
| | 1,189,814 |
| | 1,214,087 |
| | 1,149,977 |
| | 1,095,579 |
|
| Loans held for sale | 7,235 |
| | 6,423 |
| | 7,370 |
| | 6,586 |
| | 5,331 |
|
| Loans | 3,924,865 |
| | 3,772,467 |
| | 3,722,733 |
| | 3,616,627 |
| | 3,632,409 |
|
| Less: Allowance for loan losses | (63,964 | ) | | (65,596 | ) | | (68,367 | ) | | (69,583 | ) | | (67,870 | ) |
| Net loans | 3,860,901 |
| | 3,706,871 |
| | 3,654,366 |
| | 3,547,044 |
| | 3,564,539 |
|
| Premises and equipment | 77,691 |
| | 74,105 |
| | 74,856 |
| | 74,847 |
| | 74,454 |
|
| Federal Reserve and Federal Home Loan Bank stock | 41,353 |
| | 43,127 |
| | 43,127 |
| | 38,990 |
| | 38,990 |
|
| Interest receivable | 19,984 |
| | 19,455 |
| | 18,341 |
| | 18,001 |
| | 18,672 |
|
| Core deposit intangibles and goodwill | 218,755 |
| | 200,991 |
| | 201,583 |
| | 202,175 |
| | 202,766 |
|
| Cash surrender value of life insurance | 169,424 |
| | 165,423 |
| | 165,974 |
| | 165,320 |
| | 164,571 |
|
| Other real estate owned | 19,293 |
| | 14,540 |
| | 18,621 |
| | 21,077 |
| | 22,246 |
|
| Tax asset, deferred and receivable | 41,960 |
| | 41,131 |
| | 44,622 |
| | 50,684 |
| | 56,614 |
|
| Other assets | 20,764 |
| | 31,095 |
| | 28,426 |
| | 28,237 |
| | 28,997 |
|
| TOTAL ASSETS | $ | 5,824,127 |
| | $ | 5,591,383 |
| | $ | 5,615,120 |
| | $ | 5,452,936 |
| | $ | 5,437,262 |
|
| LIABILITIES |
| |
| |
| |
| |
|
| Deposits: |
| |
| |
| |
| |
|
| Noninterest-bearing | 1,070,859 |
| | 939,540 |
| | 917,825 |
| | 936,741 |
| | 930,772 |
|
| Interest-bearing | 3,569,835 |
| | 3,370,583 |
| | 3,411,785 |
| | 3,346,438 |
| | 3,300,696 |
|
| Total Deposits | 4,640,694 |
| | 4,310,123 |
| | 4,329,610 |
| | 4,283,179 |
| | 4,231,468 |
|
| Borrowings: |
| |
| |
| |
| |
|
| Federal funds purchased | 15,381 |
| | 61,428 |
| | 100,000 |
| | 48,357 |
| | 125,645 |
|
| Securities sold under repurchase agreements | 124,539 |
| | 117,892 |
| | 133,137 |
| | 137,381 |
| | 148,672 |
|
| Federal Home Loan Bank advances | 145,264 |
| | 255,423 |
| | 220,765 |
| | 170,887 |
| | 122,140 |
|
| Subordinated debentures and term loans | 126,810 |
| | 126,874 |
| | 126,874 |
| | 127,172 |
| | 126,807 |
|
| Total Borrowings | 411,994 |
| | 561,617 |
| | 580,776 |
| | 483,797 |
| | 523,264 |
|
| Interest payable | 3,201 |
| | 3,819 |
| | 2,489 |
| | 3,192 |
| | 1,771 |
|
| Other liabilities | 41,411 |
| | 31,271 |
| | 31,649 |
| | 30,657 |
| | 45,836 |
|
| Total Liabilities | 5,097,300 |
| | 4,906,830 |
| | 4,944,524 |
| | 4,800,825 |
| | 4,802,339 |
|
| STOCKHOLDERS' EQUITY |
| |
| |
| |
| |
|
| Cumulative Preferred Stock, $1,000 par value, $1,000 liquidation value: |
| |
| |
| |
| |
|
| Authorized -- 600 shares |
| |
| |
| |
| |
|
| Issued and outstanding | 125 |
| | 125 |
| | 125 |
| | 125 |
| | 125 |
|
| Common Stock, $.125 stated value: |
| |
| |
| |
| |
|
| Authorized -- 50,000,000 shares |
| |
| |
| |
| |
|
| Issued and outstanding | 4,709 |
| | 4,509 |
| | 4,507 |
| | 4,502 |
| | 4,490 |
|
| Additional paid-in capital | 431,220 |
| | 395,582 |
| | 394,774 |
| | 393,765 |
| | 393,783 |
|
| Retained earnings | 292,403 |
| | 280,187 |
| | 266,980 |
| | 254,735 |
| | 242,935 |
|
| Accumulated other comprehensive income (loss) | (1,630 | ) | | 4,150 |
| | 4,210 |
| | (1,016 | ) | | (6,410 | ) |
| Total Stockholders' Equity | 726,827 |
| | 684,553 |
| | 670,596 |
| | 652,111 |
| | 634,923 |
|
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 5,824,127 |
| | $ | 5,591,383 |
| | $ | 5,615,120 |
| | $ | 5,452,936 |
| | $ | 5,437,262 |
|
|
| | | | | | | | | | | | | | | | | | | |
| CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | |
| (Dollars In Thousands, Except Per Share Amounts) | December 31, | | September 30, | | June 30, | | March 31, | | December 31, |
| | 2014 | | 2014 | | 2014 | | 2014 | | 2013 |
| INTEREST INCOME |
| |
| |
| |
| |
|
| Loans receivable: |
| |
| |
| |
| |
|
| Taxable | $ | 43,710 |
| | $ | 43,981 |
| | $ | 42,323 |
| | $ | 42,025 |
| | $ | 38,027 |
|
| Tax-exempt | 147 |
| | 61 |
| | 58 |
| | 61 |
| | 78 |
|
| Investment securities: |
| |
| |
| |
| |
|
| Taxable | 4,980 |
| | 5,046 |
| | 5,046 |
| | 4,810 |
| | 4,143 |
|
| Tax-exempt | 3,692 |
| | 3,683 |
| | 3,570 |
| | 3,438 |
| | 3,020 |
|
| Deposits with financial institutions | 48 |
| | 18 |
| | 35 |
| | 23 |
| | 59 |
|
| Federal Reserve and Federal Home Loan Bank stock | 476 |
| | 501 |
| | 495 |
| | 652 |
| | 380 |
|
| Total Interest Income | 53,053 |
| | 53,290 |
| | 51,527 |
| | 51,009 |
| | 45,707 |
|
| INTEREST EXPENSE |
| |
| |
| |
| |
|
| Deposits | 3,402 |
| | 2,853 |
| | 2,874 |
| | 2,549 |
| | 2,350 |
|
| Federal funds purchased | 3 |
| | 102 |
| | 23 |
| | 49 |
| | 18 |
|
| Securities sold under repurchase agreements | 72 |
| | 74 |
| | 187 |
| | 196 |
| | 193 |
|
| Federal Home Loan Bank advances | 750 |
| | 734 |
| | 676 |
| | 682 |
| | 669 |
|
| Subordinated debentures and term loans | 1,666 |
| | 1,661 |
| | 1,648 |
| | 1,641 |
| | 1,342 |
|
| Total Interest Expense | 5,893 |
| | 5,424 |
| | 5,408 |
| | 5,117 |
| | 4,572 |
|
| NET INTEREST INCOME | 47,160 |
| | 47,866 |
| | 46,119 |
| | 45,892 |
| | 41,135 |
|
| Provision for loan losses | 960 |
| | 1,600 |
| |
| |
|
| | 1,016 |
|
| NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 46,200 |
| | 46,266 |
| | 46,119 |
| | 45,892 |
| | 40,119 |
|
| OTHER INCOME |
| |
| |
| |
| |
|
| Service charges on deposit accounts | 3,979 |
| | 4,119 |
| | 4,098 |
| | 3,551 |
| | 3,639 |
|
| Fiduciary activities | 2,242 |
| | 2,152 |
| | 2,360 |
| | 2,212 |
| | 2,237 |
|
| Other customer fees | 3,926 |
| | 3,991 |
| | 4,049 |
| | 3,733 |
| | 3,371 |
|
| Commission income | 1,534 |
| | 1,723 |
| | 1,886 |
| | 2,268 |
| | 1,585 |
|
| Earnings on cash surrender value of life insurance | 734 |
| | 1,524 |
| | 653 |
| | 748 |
| | 692 |
|
| Net gains and fees on sales of loans | 1,559 |
| | 1,458 |
| | 1,159 |
| | 723 |
| | 1,003 |
|
| Net realized gains on sales of available for sale securities | 1,246 |
| | 910 |
| | 844 |
| | 581 |
| |
|
|
| Other income | 1,034 |
| | 2,417 |
| | 884 |
| | 1,370 |
| | 2,546 |
|
| Total Other Income | 16,254 |
| | 18,294 |
| | 15,933 |
| | 15,186 |
| | 15,073 |
|
| OTHER EXPENSES |
| |
| |
| |
| |
|
| Salaries and employee benefits | 23,595 |
| | 24,173 |
| | 23,430 |
| | 25,301 |
| | 23,470 |
|
| Net occupancy | 3,288 |
| | 3,401 |
| | 3,204 |
| | 3,938 |
| | 2,992 |
|
| Equipment | 2,315 |
| | 2,187 |
| | 2,096 |
| | 2,739 |
| | 2,369 |
|
| Marketing | 836 |
| | 1,070 |
| | 789 |
| | 769 |
| | 675 |
|
| Outside data processing fees | 1,592 |
| | 1,853 |
| | 2,039 |
| | 1,831 |
| | 1,205 |
|
| Printing and office supplies | 364 |
| | 350 |
| | 393 |
| | 458 |
| | 378 |
|
| Core deposit amortization | 669 |
| | 592 |
| | 592 |
| | 592 |
| | 496 |
|
| FDIC assessments | 895 |
| | 920 |
| | 863 |
| | 1,060 |
| | 767 |
|
| Other real estate owned and foreclosure expenses | 1,055 |
| | 2,618 |
| | 2,613 |
| | 1,757 |
| | 1,668 |
|
| Professional and other outside services | 3,633 |
| | 1,573 |
| | 1,531 |
| | 1,379 |
| | 3,361 |
|
| Other expenses | 3,435 |
| | 3,839 |
| | 3,700 |
| | 3,265 |
| | 3,177 |
|
| Total Other Expenses | 41,677 |
| | 42,576 |
| | 41,250 |
| | 43,089 |
| | 40,558 |
|
| INCOME BEFORE INCOME TAX | 20,777 |
| | 21,984 |
| | 20,802 |
| | 17,989 |
| | 14,634 |
|
| Income tax expense | 5,517 |
| | 5,862 |
| | 5,642 |
| | 4,369 |
| | 3,187 |
|
| NET INCOME | 15,260 |
| | 16,122 |
| | 15,160 |
| | 13,620 |
| | 11,447 |
|
| Preferred stock dividends |
| |
| |
| |
|
| | (241 | ) |
| NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 15,260 |
| | $ | 16,122 |
| | $ | 15,160 |
| | $ | 13,620 |
| | $ | 11,206 |
|
| |
| |
| |
| |
| |
|
| Per Share Data: |
| |
| |
| |
| |
|
| Basic Net Income Available to Common Stockholders | $ | 0.41 |
| | $ | 0.45 |
| | $ | 0.42 |
| | $ | 0.38 |
| | $ | 0.34 |
|
| Diluted Net Income Available to Common Stockholders | $ | 0.41 |
| | $ | 0.45 |
| | $ | 0.41 |
| | $ | 0.38 |
| | $ | 0.34 |
|
| Cash Dividends Paid | $ | 0.08 |
| | $ | 0.08 |
| | $ | 0.08 |
| | $ | 0.05 |
| | $ | 0.05 |
|
| Average Diluted Shares Outstanding (in thousands) | 37,323 |
| | 36,329 |
| | 36,294 |
| | 36,261 |
| | 32,913 |
|
| FINANCIAL RATIOS: |
| |
| |
| |
| |
|
| Return on Average Assets | 1.06 | % | | 1.16 | % | | 1.10 | % | | 1.01 | % | | 0.91 | % |
| Return on Average Stockholders' Equity | 8.55 |
| | 9.49 |
| | 9.15 |
| | 8.45 |
| | 7.78 |
|
| Return on Average Common Stockholders' Equity | 8.56 |
| | 9.50 |
| | 9.15 |
| | 8.45 |
| | 8.05 |
|
| Average Earning Assets to Average Assets | 89.51 |
| | 89.82 |
| | 89.57 |
| | 89.00 |
| | 89.08 |
|
| Allowance for Loan Losses as % of Total Loans | 1.63 |
| | 1.74 |
| | 1.83 |
| | 1.92 |
| | 1.87 |
|
| Net Charge Off's as % of Average Loans (Annualized) | 0.27 |
| | 0.47 |
| | 0.13 |
| | (0.19 | ) | | (0.08 | ) |
| Average Stockholders' Equity to Average Assets | 12.34 |
| | 12.18 |
| | 12.00 |
| | 11.94 |
| | 11.64 |
|
| Tax Equivalent Yield on Earning Assets | 4.26 |
| | 4.41 |
| | 4.33 |
| | 4.40 |
| | 4.30 |
|
| Cost of Supporting Liabilities | 0.46 |
| | 0.43 |
| | 0.44 |
| | 0.43 |
| | 0.41 |
|
| Net Interest Margin (FTE) on Earning Assets | 3.80 |
| | 3.98 |
| | 3.89 |
| | 3.97 |
| | 3.89 |
|
| Tangible Book Value Per Share | $ | 13.65 |
| | $ | 13.53 |
| | $ | 13.14 |
| | $ | 12.63 |
| | $ | 12.17 |
|
|
| | | | | | | | | | | | | | | | | | | |
| LOANS | | | | | | | | | |
| (Dollars In Thousands) | December 31, | | September 30, | | June 30, | | March 31, | | December 31, |
| | 2014 | | 2014 | | 2014 | | 2014 | | 2013 |
| Commercial and industrial loans | $ | 896,688 |
| | $ | 900,970 |
| | $ | 857,844 |
| | $ | 787,390 |
| | $ | 761,705 |
|
| Agricultural production financing and other loans to farmers | 104,927 |
| | 99,649 |
| | 102,270 |
| | 99,226 |
| | 114,348 |
|
| Real estate loans: | | | | | | | | | |
| Construction | 207,221 |
| | 178,213 |
| | 165,388 |
| | 155,117 |
| | 177,082 |
|
| Commercial and farmland | 1,672,661 |
| | 1,603,698 |
| | 1,621,436 |
| | 1,606,735 |
| | 1,611,809 |
|
| Residential | 647,315 |
| | 625,609 |
| | 629,162 |
| | 626,202 |
| | 616,385 |
|
| Home Equity | 286,529 |
| | 269,952 |
| | 261,811 |
| | 256,790 |
| | 255,223 |
|
| Individuals' loans for household and other personal expenditures | 73,400 |
| | 66,832 |
| | 61,533 |
| | 61,742 |
| | 69,783 |
|
| Lease financing receivables, net of unearned income | 1,106 |
| | 1,208 |
| | 1,231 |
| | 1,378 |
| | 1,545 |
|
| Other loans | 35,018 |
| | 26,336 |
| | 22,058 |
| | 22,047 |
| | 24,529 |
|
| Loans | 3,924,865 |
| | 3,772,467 |
| | 3,722,733 |
| | 3,616,627 |
| | 3,632,409 |
|
| Allowance for loan losses | (63,964 | ) | | (65,596 | ) | | (68,367 | ) | | (69,583 | ) | | (67,870 | ) |
| NET LOANS | $ | 3,860,901 |
| | $ | 3,706,871 |
| | $ | 3,654,366 |
| | $ | 3,547,044 |
| | $ | 3,564,539 |
|
|
| | | | | | | | | | | | | | | | | | | |
| DEPOSITS | | | | | | | | | |
| (Dollars In Thousands) | December 31, | | September 30, | | June 30, | | March 31, | | December 31, |
| | 2014 | | 2014 | | 2014 | | 2014 | | 2013 |
| Demand deposits | $ | 2,146,492 |
| | $ | 1,947,040 |
| | $ | 2,041,183 |
| | $ | 1,966,895 |
| | $ | 2,018,650 |
|
| Savings deposits | 1,376,707 |
| | 1,281,994 |
| | 1,251,277 |
| | 1,282,702 |
| | 1,257,994 |
|
| Certificates and other time deposits of $100,000 or more | 260,685 |
| | 241,163 |
| | 251,585 |
| | 265,683 |
| | 272,660 |
|
| Other certificates and time deposits | 523,010 |
| | 502,965 |
| | 534,344 |
| | 568,160 |
| | 595,110 |
|
| Brokered deposits | 333,800 |
| | 336,961 |
| | 251,221 |
| | 199,739 |
| | 87,054 |
|
| TOTAL DEPOSITS | $ | 4,640,694 |
| | $ | 4,310,123 |
| | $ | 4,329,610 |
| | $ | 4,283,179 |
| | $ | 4,231,468 |
|
|
| | | | | | | | | | | | | | | | | | | | | |
| NET INTEREST INCOME | | | | | | | | | | | |
| (Dollars in Thousands) | For the Three Months Ended |
| | December 31, 2014 | | December 31, 2013 |
| | Average Balance | | Interest
Income /
Expense | | Average
Rate | | Average Balance | | Interest
Income /
Expense | | Average
Rate |
| Assets: | | | | | | | | | | | |
| Interest-bearing time deposits | $ | 80,901 |
| | $ | 48 |
| | 0.2 | % | | $ | 116,838 |
| | $ | 59 |
| | 0.2 | % |
| Federal Reserve and Federal Home Loan Bank stock | 43,580 |
| | 476 |
| | 4.4 |
| | 36,095 |
| | 380 |
| | 4.2 |
|
Investment Securities: (1) | | | | | | | | | | | |
| Taxable | 767,980 |
| | 4,980 |
| | 2.6 |
| | 644,767 |
| | 4,143 |
| | 2.6 |
|
Tax-Exempt (2) | 416,473 |
| | 5,680 |
| | 5.5 |
| | 318,803 |
| | 4,647 |
| | 5.8 |
|
| Total Investment Securities | 1,184,453 |
| | 10,660 |
| | 3.6 |
| | 963,570 |
| | 8,790 |
| | 3.6 |
|
| Loans held for sale | 6,208 |
| | 129 |
| | 8.3 |
| | 5,069 |
| | 80 |
| | 6.3 |
|
Loans: (3) | | | | | | | | | | | |
| Commercial | 2,993,498 |
| | 33,882 |
| | 4.5 |
| | 2,688,803 |
| | 30,921 |
| | 4.6 |
|
| Real Estate Mortgage | 463,465 |
| | 5,162 |
| | 4.5 |
| | 277,085 |
| | 3,117 |
| | 4.5 |
|
| Installment | 386,818 |
| | 4,537 |
| | 4.7 |
| | 308,212 |
| | 3,909 |
| | 5.1 |
|
Tax-Exempt (2) | 17,020 |
| | 227 |
| | 5.3 |
| | 13,824 |
| | 120 |
| | 3.5 |
|
| Total Loans | 3,867,009 |
| | 43,937 |
| | 4.5 |
| | 3,292,993 |
| | 38,147 |
| | 4.6 |
|
| Total Earning Assets | 5,175,943 |
| | 55,121 |
| | 4.3 | % | | 4,409,496 |
| | 47,376 |
| | 4.3 | % |
| Net unrealized gain on securities available for sale | 11,864 |
| | | | | | (92 | ) | | | | |
| Allowance for loan losses | (65,790 | ) | | | | | | (66,949 | ) | | | | |
| Cash and cash equivalents | 98,373 |
| | | | | | 91,122 |
| | | | |
| Premises and equipment | 76,594 |
| | | | | | 66,383 |
| | | | |
| Other assets | 485,273 |
| | | | | | 450,314 |
| | | | |
| Total Assets | $ | 5,782,257 |
| | | | | | $ | 4,950,274 |
| | | | |
| Liabilities: | | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | |
| Interest-bearing NOW deposits | $ | 1,080,171 |
| | $ | 282 |
| | 0.1 | % | | $ | 969,929 |
| | $ | 257 |
| | 0.1 | % |
| Money market deposits | 840,852 |
| | 436 |
| | 0.2 |
| | 719,180 |
| | 376 |
| | 0.2 |
|
| Savings deposits | 550,687 |
| | 159 |
| | 0.1 |
| | 442,879 |
| | 130 |
| | 0.1 |
|
| Certificates and other time deposits | 1,106,324 |
| | 2,525 |
| | 0.9 |
| | 845,420 |
| | 1,587 |
| | 0.8 |
|
| Total Interest-bearing Deposits | 3,578,034 |
| | 3,402 |
| | 0.4 |
| | 2,977,408 |
| | 2,350 |
| | 0.3 |
|
| Borrowings | 442,088 |
| | 2,491 |
| | 2.3 |
| | 428,136 |
| | 2,222 |
| | 2.1 |
|
| Total Interest-bearing Liabilities | 4,020,122 |
| | 5,893 |
| | 0.6 |
| | 3,405,544 |
| | 4,572 |
| | 0.5 |
|
| Noninterest-bearing deposits | 1,004,910 |
| | | | | | 883,044 |
| | | | |
| Other liabilities | 43,692 |
| | | | | | 85,529 |
| | | | |
| Total Liabilities | 5,068,724 |
| | | | | | 4,374,117 |
| | | | |
| Stockholders' Equity | 713,533 |
| | | | | | 576,157 |
| | | | |
| Total Liabilities and Stockholders' Equity | $ | 5,782,257 |
| | 5,893 |
| | 0.5 |
| | $ | 4,950,274 |
| | 4,572 |
| | 0.4 |
|
| Net Interest Income | | | $ | 49,228 |
| | | | | | $ | 42,804 |
| | |
| Net Interest Margin | | | | | 3.8 | % | | | | | | 3.9 | % |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
(1) Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. |
(2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 35 percent for 2014 and 2013. These totals equal $2,068 and $1,669 for three months ended December 31, 2014 and 2013, respectively. |
(3) Non accruing loans have been included in the average balances. | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | |
| NET INTEREST INCOME | | | | | | | | | | | |
| (Dollars in Thousands) | For the Years Ended |
| | December 31, 2014 | | December 31, 2013 |
| | Average Balance | | Interest
Income /
Expense | | Average
Rate | | Average Balance | | Interest
Income /
Expense | | Average
Rate |
| Assets: | | | | | | | | | | | |
| Interest-bearing time deposits | $ | 53,231 |
| | $ | 124 |
| | 0.2 | % | | $ | 74,964 |
| | $ | 158 |
| | 0.2 | % |
| Federal Reserve and Federal Home Loan Bank stock | 42,142 |
| | 2,124 |
| | 5.0 |
| | 33,620 |
| | 1,488 |
| | 4.4 |
|
Investment Securities: (1) | | | | | | | | | | | |
| Taxable | 763,450 |
| | 19,882 |
| | 2.6 |
| | 617,524 |
| | 15,214 |
| | 2.5 |
|
Tax-Exempt (2) | 396,435 |
| | 22,127 |
| | 5.6 |
| | 282,584 |
| | 16,660 |
| | 5.9 |
|
| Total Investment Securities | 1,159,885 |
| | 42,009 |
| | 3.6 |
| | 900,108 |
| | 31,874 |
| | 3.5 |
|
| Loans held for sale | 6,681 |
| | 485 |
| | 7.3 |
| | 16,137 |
| | 770 |
| | 4.8 |
|
Loans: (3) | | | | | | | | | | | |
| Commercial | 2,919,020 |
| | 133,567 |
| | 4.6 |
| | 2,391,221 |
| | 113,613 |
| | 4.8 |
|
| Real Estate Mortgage | 429,384 |
| | 19,812 |
| | 4.6 |
| | 277,520 |
| | 12,375 |
| | 4.5 |
|
| Installment | 361,484 |
| | 18,175 |
| | 5.0 |
| | 308,233 |
| | 15,994 |
| | 5.2 |
|
Tax-Exempt (2) | 13,511 |
| | 504 |
| | 3.7 |
| | 15,444 |
| | 605 |
| | 3.9 |
|
| Total Loans | 3,730,080 |
| | 172,543 |
| | 4.6 |
| | 3,008,555 |
| | 143,357 |
| | 4.8 |
|
| Total Earning Assets | 4,985,338 |
| | 216,800 |
| | 4.3 | % | | 4,017,247 |
| | 176,877 |
| | 4.4 | % |
| Net unrealized gain on securities available for sale | 8,921 |
| | | | | | 4,521 |
| | | | |
| Allowance for loan losses | (67,969 | ) | | | | | | (68,806 | ) | | | | |
| Cash and cash equivalents | 87,068 |
| | | | | | 73,161 |
| | | | |
| Premises and equipment | 75,202 |
| | | | | | 57,228 |
| | | | |
| Other assets | 482,794 |
| | | | | | 372,060 |
| | | | |
| Total Assets | $ | 5,571,354 |
| | | | | | $ | 4,455,411 |
| | | | |
| Liabilities: | | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | |
| Interest-bearing NOW deposits | $ | 1,066,402 |
| | $ | 1,110 |
| | 0.1 | % | | $ | 880,323 |
| | $ | 941 |
| | 0.1 | % |
| Money market deposits | 776,712 |
| | 1,572 |
| | 0.2 |
| | 603,012 |
| | 1,287 |
| | 0.2 |
|
| Savings deposits | 533,080 |
| | 619 |
| | 0.1 |
| | 377,106 |
| | 421 |
| | 0.1 |
|
| Certificates and other time deposits | 1,042,539 |
| | 8,377 |
| | 0.8 |
| | 807,764 |
| | 7,404 |
| | 0.9 |
|
| Total Interest-bearing Deposits | 3,418,733 |
| | 11,678 |
| | 0.3 |
| | 2,668,205 |
| | 10,053 |
| | 0.4 |
|
| Borrowings | 492,128 |
| | 10,164 |
| | 2.1 |
| | 400,580 |
| | 6,516 |
| | 1.6 |
|
| Total Interest-bearing Liabilities | 3,910,861 |
| | 21,842 |
| | 0.6 |
| | 3,068,785 |
| | 16,569 |
| | 0.5 |
|
| Noninterest-bearing deposits | 945,222 |
| | | | | | 797,435 |
| | | | |
| Other liabilities | 39,976 |
| | | | | | 48,936 |
| | | | |
| Total Liabilities | 4,896,059 |
| | | | | | 3,915,156 |
| | | | |
| Stockholders' Equity | 675,295 |
| | | | | | 540,255 |
| | | | |
| Total Liabilities and Stockholders' Equity | $ | 5,571,354 |
| | 21,842 |
| | 0.4 |
| | $ | 4,455,411 |
| | 16,569 |
| | 0.4 |
|
| Net Interest Income | | | $ | 194,958 |
| | | | | | $ | 160,308 |
| | |
| Net Interest Margin | | | | | 3.9 | % | | | | | | 4.0 | % |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
(1) Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. |
(2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 35 percent for 2014 and 2013. These totals equal $7,921 and $6,043 for the years ended December 31, 2014 and 2013, respectively. |
(3) Non accruing loans have been included in the average balances. | | | | | | | | | | | |
