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     126  0 Kommentare First Merchants Corporation Announces 2019 Results

    MUNCIE, Ind., Jan. 30, 2020 (GLOBE NEWSWIRE) -- First Merchants Corporation (NASDAQ - FRME) has reported fourth quarter 2019 net income of $47.8 million compared to $41.7 million during the same period in 2018.  Earnings per share for the period totaled $.87 per share compared to fourth quarter 2018 result of $.85 per share.  Included in the fourth quarter results are $1.9 million, or $.03 per share, of one-time charges related to the closing of our acquisition with Monroe Bank & Trust on September 1, 2019.  Net income for the year ended December 31, 2019 totaled $164.5 million, compared to $159.1 million during the same period in 2018.  Year-to-date earnings per share totaled $3.19 compared to $3.22 in 2018.  Included in the year-to-date results are $13.7 million, or $.21 per share, of one-time charges related to the acquisition of Monroe Bank & Trust.

    Total assets equaled $12.5 billion as of year-end and loans totaled $8.5 billion.  The Corporation’s loan portfolio increased by $1.2 billion, or 17.1 percent, during 2019.  Investments increased $963 million, or 59 percent, during the year and now total $2.6 billion.  Total deposits equaled $9.8 billion as of year-end and increased by $2.1 billion, or 26.9 percent, during 2019.  Of the 2019 increases, Monroe Bank & Trust accounted for $733 million of loan growth and $1.1 billion of deposit growth.

    The Corporation’s loan-to-deposit ratio now totals 86 percent and loan-to-asset ratio totals 68 percent.  Additionally, the Corporation’s total risk-based capital ratio equaled 14.29 percent, common equity tier 1 capital ratio equaled 12.13 percent, and the tangible common equity ratio totaled 10.16 percent.

    Michael C. Rechin, President and Chief Executive Officer, stated, “Our team completed 2019 producing strong financial results that reflect aggressive market coverage as well as entry into the state of Michigan through the acquisition and integration of Monroe Bank & Trust.  Our balance sheet grew organically by 7 percent in loans and 12.6 percent in deposits.  Our loan portfolio continues to exhibit stellar credit quality which improved throughout the year.  Despite net-interest margin pressure during the year, the balance sheet growth fueled record net-interest income and earnings.  We are eager to accelerate into 2020 with a high-performing team that’s motivated to serve our marketplace with skilled advisory and growth solutions.”

    Net-interest income totaled $356.7 million for the year, an increase of $17.8 million, or 5.3 percent, in the face of a net-interest margin decline of 31 basis points to 3.69 percent.  Yield on earning assets declined by 1 basis point totaling 4.78 percent and the cost of supporting liabilities increased by 30 basis points and totaled 1.09 percent.  The impact of fair value accretion on margin declined from 16 basis points in 2018 to 12 basis points in 2019.

    Non-interest income totaled $86.7 million for the year, a $10.2 million, or 13.4 percent, increase from 2018.  Customer specific line items accounted for $10.4 million of increase in total non-interest income.  Customer specific line items driving the improved revenue included growth in derivative hedge fees of $2.9 million, fiduciary and wealth management fees of $2.7 million, card payment fees of $2.2 million and service charges of $2 million.  Non-interest expense totaled $246.8 million for the year ended 2019, a $26.8 million increase from 2018.  Of the increase, merger-related expenses totaled $13.7 million.

    The Corporation’s provision expense totaled $2.8 million for 2019 as net charge-offs were $3.1 million.  The allowance for loan losses totaled $80.3 million as of December 31, 2019, declining slightly from 2018 as delinquent, impaired, and non-accrual loans declined during 2019.

    CONFERENCE CALL

    First Merchants Corporation will conduct a fourth quarter earnings conference call and web cast at 2:30 p.m. (ET) on Thursday, January 30, 2020.

    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 February 29, 2020. 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 10137476.

    In order to view the web cast and presentation slides, please go to http://services.choruscall.com/links/frme200130.html during the time of the call.  A replay of the web cast will be available until January 30, 2021.

    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) December 31,
      2019   2018
    ASSETS      
    Cash and cash equivalents $ 177,201     $ 139,247  
    Interest-bearing time deposits 118,263     36,963  
    Investment securities 2,596,063     1,632,582  
    Loans held for sale 9,037     4,778  
    Loans 8,459,310     7,224,467  
    Less: Allowance for loan losses (80,284 )   (80,552 )
    Net loans 8,379,026     7,143,915  
    Premises and equipment 113,055     93,420  
    Federal Home Loan Bank stock 28,736     24,588  
    Interest receivable 48,901     40,881  
    Goodwill and other intangibles 578,880     469,784  
    Cash surrender value of life insurance 288,206     224,939  
    Other real estate owned 7,527     2,179  
    Tax asset, deferred and receivable 12,165     23,668  
    Other assets 100,194     47,772  
    TOTAL ASSETS $ 12,457,254     $ 9,884,716  
    LIABILITIES      
    Deposits:      
    Noninterest-bearing $ 1,736,396     $ 1,447,907  
    Interest-bearing 8,103,560     6,306,686  
    Total Deposits 9,839,956     7,754,593  
    Borrowings:      
    Federal funds purchased 55,000     104,000  
    Securities sold under repurchase agreements 187,946     113,512  
    Federal Home Loan Bank advances 351,072     314,986  
    Subordinated debentures and term loans 138,685     138,463  
    Total Borrowings 732,703     670,961  
    Interest payable 6,754     5,607  
    Other liabilities 91,404     45,295  
    Total Liabilities 10,670,817     8,476,456  
    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 - 55,368,482 and 49,349,800 shares 6,921     6,169  
    Additional paid-in capital 1,054,997     840,052  
    Retained earnings 696,520     583,336  
    Accumulated other comprehensive income (loss) 27,874     (21,422 )
    Total Stockholders' Equity 1,786,437     1,408,260  
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 12,457,254     $ 9,884,716  

     

    CONSOLIDATED STATEMENTS OF INCOME Three Months Ended   Twelve Months Ended
    (Dollars In Thousands, Except Per Share Amounts) December 31,   December 31,
      2019   2018   2019   2018
    INTEREST INCOME              
    Loans receivable:              
    Taxable $ 102,617     $ 91,092     $ 382,772     $ 342,501  
    Tax-exempt 4,671     3,873     17,568     14,862  
    Investment securities:              
    Taxable 7,993     5,553     27,815     21,597  
    Tax-exempt 8,995     6,644     31,655     25,509  
    Deposits with financial institutions 1,203     1,207     4,225     2,241  
    Federal Home Loan Bank stock 342     284     1,370     1,234  
    Total Interest Income 125,821     108,653     465,405     407,944  
    INTEREST EXPENSE              
    Deposits 24,074     16,690     91,585     51,542  
    Federal funds purchased 26     48     251     718  
    Securities sold under repurchase agreements 367     243     1,424     762  
    Federal Home Loan Bank advances 1,776     1,691     7,176     7,832  
    Subordinated debentures and term loans 1,994     2,097     8,309     8,233  
    Total Interest Expense 28,237     20,769     108,745     69,087  
    NET INTEREST INCOME 97,584     87,884     356,660     338,857  
    Provision for loan losses 500     1,664     2,800     7,227  
    NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 97,084     86,220     353,860     331,630  
    OTHER INCOME              
    Service charges on deposit accounts 6,312     5,516     22,951     20,950  
    Fiduciary and wealth management fees 5,384     3,842     17,562     14,906  
    Card payment fees 5,430     4,393     20,243     18,035  
    Net gains and fees on sales of loans 2,633     1,767     7,891     7,029  
    Derivative hedge fees 1,405     645     5,357     2,493  
    Other customer fees 434     511     1,664     1,860  
    Earnings on cash surrender value of life insurance 1,458     1,074     4,537     4,218  
    Net realized gains on sales of available for sale securities 1,039     253     4,415     4,269  
    Other income 150     1,179     2,068     2,699  
    Total Other Income 24,245     19,180     86,688     76,459  
    OTHER EXPENSES              
    Salaries and employee benefits 39,358     34,350     144,037     131,704  
    Net occupancy 5,311     4,737     19,584     18,341  
    Equipment 4,429     3,627     16,218     14,334  
    Marketing 1,492     1,107     6,650     4,681  
    Outside data processing fees 4,428     3,367     16,476     13,215  
    Printing and office supplies 484     433     1,445     1,425  
    Intangible asset amortization 1,590     1,625     5,994     6,719  
    FDIC assessments     634     717     2,920  
    Other real estate owned and foreclosure expenses 66     251     2,428     1,470  
    Professional and other outside services 2,899     3,002     15,410     8,176  
    Other expenses 5,144     4,605     17,804     16,966  
    Total Other Expenses 65,201     57,738     246,763     219,951  
    INCOME BEFORE INCOME TAX 56,128     47,662     193,785     188,138  
    Income tax expense 8,298     5,949     29,325     28,999  
    NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 47,830     $ 41,713     $ 164,460     $ 159,139  
                   
    Per Share Data:              
    Basic Net Income Available to Common Stockholders $ 0.87     $ 0.85     $ 3.20     $ 3.23  
    Diluted Net Income Available to Common Stockholders $ 0.87     $ 0.85     $ 3.19     $ 3.22  
    Cash Dividends Paid $ 0.26     $ 0.22     $ 1.00     $ 0.84  
    Average Diluted Shares Outstanding (in thousands) 55,520     49,511     51,561     49,471  

     

    FINANCIAL HIGHLIGHTS              
    (Dollars in thousands) Three Months Ended   Twelve Months Ended
      December 31,   December 31,
      2019   2018   2019   2018
    NET CHARGE-OFFS $ 787     $ (482 )   $ 3,068     $ 1,707  
                   
    AVERAGE BALANCES:              
    Total Assets $ 12,479,039     $ 9,923,001     $ 11,091,320     $ 9,689,057  
    Total Loans 8,358,683     7,102,552     7,690,190     6,997,771  
    Total Earning Assets 11,194,954     8,971,432     10,015,771     8,736,367  
    Total Deposits 9,926,794     7,875,998     8,782,634     7,569,482  
    Total Stockholders' Equity 1,768,848     1,379,453     1,569,615     1,343,861  
                   
    FINANCIAL RATIOS:              
    Return on Average Assets 1.53 %   1.68 %   1.48 %   1.64 %
    Return on Average Stockholders' Equity 10.82     12.10     10.48     11.84  
    Return on Average Common Stockholders' Equity 10.82     12.10     10.48     11.84  
    Average Earning Assets to Average Assets 89.71     90.41     90.30     90.17  
    Allowance for Loan Losses as % of Total Loans 0.95     1.11     0.95     1.11  
    Net Charge-offs as % of Average Loans (Annualized) 0.04     (0.03 )   0.04     0.02  
    Average Stockholders' Equity to Average Assets 14.17     13.90     14.15     13.87  
    Tax Equivalent Yield on Average Earning Assets 4.63     4.97     4.78     4.79  
    Interest Expense/Average Earning Assets 1.01     0.93     1.09     0.79  
    Net Interest Margin (FTE) on Average Earning Assets 3.62     4.04     3.69     4.00  
    Efficiency Ratio 51.07     50.97     52.73     50.21  
    Tangible Common Book Value Per Share $ 21.94     $ 19.12     $ 21.94     $ 19.12  

     

    NON-PERFORMING ASSETS                  
    (Dollars In Thousands) December 31,   September 30,   June 30,   March 31,   December 31,
      2019   2019   2019   2019   2018
    Non-Accrual Loans $ 15,949     $ 22,728     $ 25,635     $ 27,949     $ 26,148  
    Renegotiated Loans 841     576     640     709     1,103  
    Non-Performing Loans (NPL) 16,790     23,304     26,275     28,658     27,251  
    Other Real Estate Owned 7,527     7,156     1,131     1,877     2,179  
    Non-Performing Assets (NPA) 24,317     30,460     27,406     30,535     29,430  
    90+ Days Delinquent 69     82     209     134     1,855  
    NPAs & 90 Day Delinquent $ 24,386     $ 30,542     $ 27,615     $ 30,669     $ 31,285  
                       
    Allowance for Loan Losses $ 80,284     $ 80,571     $ 81,274     $ 80,902     $ 80,552  
    Quarterly Net Charge-offs 787     1,303     128     850     (482 )
    NPAs / Actual Assets % 0.20 %   0.25 %   0.26 %   0.30 %   0.30 %
    NPAs & 90 Day / Actual Assets % 0.20 %   0.25 %   0.26 %   0.30 %   0.32 %
    NPAs / Actual Loans and OREO % 0.29 %   0.37 %   0.36 %   0.42 %   0.41 %
    Allowance for Loan Losses / Actual Loans (%) 0.95 %   0.97 %   1.08 %   1.11 %   1.11 %
    Net Charge-offs as % of Average Loans (Annualized) 0.04 %   0.07 %   0.01 %   0.05 %   (0.03 )%

     

    CONSOLIDATED BALANCE SHEETS                  
    (Dollars In Thousands) December 31,   September 30,   June 30,   March 31,   December 31,
      2019   2019   2019   2019   2018
    ASSETS                  
    Cash and cash equivalents $ 177,201     $ 202,383     $ 128,185     $ 115,878     $ 139,247  
    Interest-bearing time deposits 118,263     230,101     129,614     70,672     36,963  
    Investment securities 2,596,063     2,489,420     2,092,924     1,862,659     1,632,582  
    Loans held for sale 9,037     7,910     5,854     3,330     4,778  
    Loans 8,459,310     8,299,260     7,511,370     7,299,320     7,224,467  
    Less: Allowance for loan losses (80,284 )   (80,571 )   (81,274 )   (80,902 )   (80,552 )
    Net loans 8,379,026     8,218,689     7,430,096     7,218,418     7,143,915  
    Premises and equipment 113,055     113,446     91,767     91,863     93,420  
    Federal Home Loan Bank stock 28,736     28,736     24,588     24,588     24,588  
    Interest receivable 48,901     45,923     45,150     40,931     40,881  
    Goodwill and other intangibles 578,880     579,751     466,736     468,256     469,784  
    Cash surrender value of life insurance 288,206     286,747     226,241     225,928     224,939  
    Other real estate owned 7,527     7,156     1,131     1,877     2,179  
    Tax asset, deferred and receivable 12,165     15,187     12,340     16,094     23,668  
    Other assets 100,194     99,612     83,231     70,431     47,772  
    TOTAL ASSETS $ 12,457,254     $ 12,325,061     $ 10,737,857     $ 10,210,925     $ 9,884,716  
                       
    LIABILITIES                  
    Deposits:                  
    Noninterest-bearing $ 1,736,396     $ 1,777,365     $ 1,353,165     $ 1,381,183     $ 1,447,907  
    Interest-bearing 8,103,560     7,988,086     6,966,163     6,666,615     6,306,686  
    Total Deposits 9,839,956     9,765,451     8,319,328     8,047,798     7,754,593  
    Borrowings:                  
    Federal funds purchased 55,000       75,000     20,000     104,000  
    Securities sold under repurchase agreements 187,946     191,603     119,674     111,783     113,512  
    Federal Home Loan Bank advances 351,072     354,609     460,042     345,013     314,986  
    Subordinated debentures and term loans 138,685     138,630     138,574     138,519     138,463  
    Total Borrowings 732,703     684,842     793,290     615,315     670,961  
    Interest payable 6,754     7,855     6,740     7,313     5,607  
    Other liabilities 91,404     117,901     116,863     84,651     45,295  
    Total Liabilities 10,670,817     10,576,049     9,236,221     8,755,077     8,476,456  
    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 6,921     6,918     6,182     6,179     6,169  
    Additional paid-in capital 1,054,997     1,053,148     841,365     839,919     840,052  
    Retained earnings 696,520     663,173     639,362     611,220     583,336  
    Accumulated other comprehensive income (loss) 27,874     25,648     14,602     (1,595 )   (21,422 )
    Total Stockholders' Equity 1,786,437     1,749,012     1,501,636     1,455,848     1,408,260  
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 12,457,254     $ 12,325,061     $ 10,737,857     $ 10,210,925     $ 9,884,716  

     

    CONSOLIDATED STATEMENTS OF INCOME                  
    (Dollars In Thousands, Except Per Share Amounts) December 31,   September 30,   June 30,   March 31,   December 31,
      2019   2019   2019   2019   2018
    INTEREST INCOME                  
    Loans receivable:                  
    Taxable $ 102,617     $ 96,850     $ 92,824     $ 90,481     $ 91,092  
    Tax-exempt 4,671     4,500     4,244     4,153     3,873  
    Investment securities:                  
    Taxable 7,993     6,729     6,998     6,095     5,553  
    Tax-exempt 8,995     8,335     7,454     6,871     6,644  
    Deposits with financial institutions 1,203     1,363     784     875     1,207  
    Federal Home Loan Bank stock 342     355     335     338     284  
    Total Interest Income 125,821     118,132     112,639     108,813     108,653  
    INTEREST EXPENSE                  
    Deposits 24,074     24,830     23,087     19,594     16,690  
    Federal funds purchased 26     15     117     93     48  
    Securities sold under repurchase agreements 367     385     342     330     243  
    Federal Home Loan Bank advances 1,776     1,894     1,692     1,814     1,691  
    Subordinated debentures and term loans 1,994     2,076     2,123     2,116     2,097  
    Total Interest Expense 28,237     29,200     27,361     23,947     20,769  
    NET INTEREST INCOME 97,584     88,932     85,278     84,866     87,884  
    Provision for loan losses 500     600     500     1,200     1,664  
    NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 97,084     88,332     84,778     83,666     86,220  
    OTHER INCOME                  
    Service charges on deposit accounts 6,312     6,107     5,437     5,095     5,516  
    Fiduciary and wealth management fees 5,384     4,429     3,931     3,818     3,842  
    Card payment fees 5,430     5,158     4,829     4,826     4,393  
    Net gains and fees on sales of loans 2,633     2,227     1,736     1,295     1,767  
    Derivative hedge fees 1,405     1,684     1,487     781     645  
    Other customer fees 434     450     341     439     511  
    Earnings on cash surrender value of life insurance 1,458     1,144     946     989     1,074  
    Net realized gains on sales of available for sale securities 1,039     393     1,843     1,140     253  
    Other income 150     524     1,064     330     1,179  
    Total Other Income 24,245     22,116     21,614     18,713     19,180  
    OTHER EXPENSES                  
    Salaries and employee benefits 39,358     38,942     32,709     33,028     34,350  
    Net occupancy 5,311     4,777     4,469     5,027     4,737  
    Equipment 4,429     4,030     4,117     3,642     3,627  
    Marketing 1,492     1,332     2,752     1,074     1,107  
    Outside data processing fees 4,428     4,435     3,929     3,684     3,367  
    Printing and office supplies 484     312     334     315     433  
    Intangible asset amortization 1,590     1,356     1,520     1,528     1,625  
    FDIC assessments     (668 )   678     707     634  
    Other real estate owned and foreclosure expenses 66     294     903     1,165     251  
    Professional and other outside services 2,899     8,251     2,376     1,884     3,002  
    Other expenses 5,144     4,293     3,800     4,567     4,605  
    Total Other Expenses 65,201     67,354     57,587     56,621     57,738  
    INCOME BEFORE INCOME TAX 56,128     43,094     48,805     45,758     47,662  
    Income tax expense 8,298     6,337     7,749     6,941     5,949  
    NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 47,830     $ 36,757     $ 41,056     $ 38,817     $ 41,713  
                       
    Per Share Data:                  
    Basic Net Income Available to Common Stockholders $ 0.87     $ 0.71     $ 0.83     $ 0.79     $ 0.85  
    Diluted Net Income Available to Common Stockholders $ 0.87     $ 0.71     $ 0.83     $ 0.78     $ 0.85  
    Cash Dividends Paid $ 0.26     $ 0.26     $ 0.26     $ 0.22     $ 0.22  
    Average Diluted Shares Outstanding (in thousands) 55,520     51,570     49,550     49,541     49,511  
    FINANCIAL RATIOS:                  
    Return on Average Assets 1.53 %   1.30 %   1.56 %   1.54 %   1.68 %
    Return on Average Stockholders' Equity 10.82     9.21     11.10     10.86     12.10  
    Return on Average Common Stockholders' Equity 10.82     9.21     11.10     10.86     12.10  
    Average Earning Assets to Average Assets 89.71     90.37     90.66     90.60     90.41  
    Allowance for Loan Losses as % of Total Loans 0.95     0.97     1.08     1.11     1.11  
    Net Charge-offs as % of Average Loans (Annualized) 0.04     0.07     0.01     0.05     (0.03 )
    Average Stockholders' Equity to Average Assets 14.17     14.16     14.09     14.18     13.90  
    Tax Equivalent Yield on Average Earning Assets 4.63     4.77     4.86     4.89     4.97  
    Interest Expense/Average Earning Assets 1.01     1.15     1.15     1.05     0.93  
    Net Interest Margin (FTE) on Average Earning Assets 3.62     3.62     3.71     3.84     4.04  
    Efficiency Ratio 51.07     57.60     51.00     51.18     50.97  
    Tangible Common Book Value Per Share $ 21.94     $ 21.26     $ 21.01     $ 20.07     $ 19.12  

     

    LOANS                  
    (Dollars In Thousands) December 31,   September 30,   June 30,   March 31,   December 31,
      2019   2019   2019   2019   2018
    Commercial and industrial loans $ 2,109,879     $ 2,034,311     $ 1,877,042     $ 1,788,628     $ 1,726,664  
    Agricultural production financing and other loans to farmers 93,861     90,462     83,452     80,357     92,404  
    Real estate loans:                  
    Construction 787,568     670,138     624,548     542,501     545,729  
    Commercial and farmland 3,052,698     3,144,649     2,821,689     2,838,798     2,832,102  
    Residential 1,143,217     1,155,403     993,802     976,668     966,421  
    Home equity 588,984     601,335     548,006     536,208     528,157  
    Individuals' loans for household and other personal expenditures 135,989     131,246     98,384     108,216     99,788  
    Public finance and other commercial loans 547,114     471,716     464,447     427,944     433,202  
    Loans 8,459,310     8,299,260     7,511,370     7,299,320     7,224,467  
    Allowance for loan losses (80,284 )   (80,571 )   (81,274 )   (80,902 )   (80,552 )
    NET LOANS $ 8,379,026     $ 8,218,689     $ 7,430,096     $ 7,218,418     $ 7,143,915  

     

    DEPOSITS                  
    (Dollars In Thousands) December 31,   September 30,   June 30,   March 31,   December 31,
      2019   2019   2019   2019   2018
    Demand deposits $ 5,250,568     $ 5,183,971     $ 4,309,473     $ 4,101,156     $ 3,985,178  
    Savings deposits 2,896,177     2,808,745     2,358,720     2,338,266     2,282,701  
    Certificates and other time deposits of $100,000 or more 736,843     731,693     720,536     670,199     593,592  
    Other certificates and time deposits 741,759     811,780     729,392     704,527     646,682  
    Brokered deposits 214,609     229,262     201,207     233,650     246,440  
    TOTAL DEPOSITS $ 9,839,956     $ 9,765,451     $ 8,319,328     $ 8,047,798     $ 7,754,593  

     

    CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS              
    (Dollars in Thousands)                      
      For the Three Months Ended
      December 31, 2019   December 31, 2018
      Average
    Balance
      Interest
     Income /
    Expense
      Average
    Rate
      Average
    Balance
      Interest
     Income /
    Expense
      Average
    Rate
    Assets:                      
    Interest-bearing time deposits $ 291,616     $ 1,203     1.65 %   $ 210,121     $ 1,207     2.30 %
    Federal Home Loan Bank stock 28,736     342     4.76     24,588     284     4.62  
    Investment Securities: (1)                      
    Taxable 1,339,068     7,993     2.39     843,514     5,553     2.63  
    Tax-Exempt (2) 1,176,851     11,386     3.87     790,657     8,410     4.25  
    Total Investment Securities 2,515,919     19,379     3.08     1,634,171     13,963     3.42  
    Loans held for sale 23,712     267     4.50     15,142     177     4.68  
    Loans: (3)                      
    Commercial 6,111,179     81,374     5.33     5,224,202     73,416     5.62  
    Real Estate Mortgage 916,247     11,256     4.91     739,325     8,375     4.53  
    Installment 747,166     9,720     5.20     649,717     9,124     5.62  
    Tax-Exempt (2) 560,379     5,913     4.22     474,166     4,903     4.14  
    Total Loans 8,358,683     108,530     5.19     7,102,552     95,995     5.41  
    Total Earning Assets 11,194,954     129,454     4.63 %   8,971,432     111,449     4.97 %
    Net unrealized gain (loss) on securities available for sale 31,979             (24,206 )        
    Allowance for loan losses (80,491 )           (78,926 )        
    Cash and cash equivalents 179,582             140,065          
    Premises and equipment 113,333             93,589          
    Other assets 1,039,682             821,047          
    Total Assets $ 12,479,039             $ 9,923,001          
    Liabilities:                      
    Interest-bearing deposits:                      
    Interest-bearing deposits $ 3,513,297     $ 9,077     1.03 %   $ 2,563,703     $ 5,565     0.87 %
    Money market deposits 1,529,156     4,054     1.06     1,157,022     2,450     0.85  
    Savings deposits 1,406,548     2,149     0.61     1,134,559     2,016     0.71  
    Certificates and other time deposits 1,736,058     8,794     2.03     1,542,222     6,659     1.73  
    Total Interest-bearing Deposits 8,185,059     24,074     1.18     6,397,506     16,690     1.04  
    Borrowings 669,756     4,163     2.49     611,255     4,079     2.67  
    Total Interest-bearing Liabilities 8,854,815     28,237     1.28     7,008,761     20,769     1.19  
    Noninterest-bearing deposits 1,741,735             1,478,492          
    Other liabilities 113,641             56,295          
    Total Liabilities 10,710,191             8,543,548          
    Stockholders' Equity 1,768,848             1,379,453          
    Total Liabilities and Stockholders' Equity $ 12,479,039     28,237         $ 9,923,001     20,769      
    Net Interest Income (FTE)     $ 101,217             $ 90,680      
    Net Interest Spread (FTE) (4)         3.35 %           3.78 %
                           
    Net Interest Margin (FTE):                      
    Interest Income (FTE) / Average Earning Assets         4.63 %           4.97 %
    Interest Expense / Average Earning Assets         1.01 %           0.93 %
    Net Interest Margin (FTE) (5)         3.62 %           4.04 %
                           
    (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 21 percent for 2019 and 2018.  These totals equal $3,633 and $2,796 for the three months ended December 31, 2019 and 2018, 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.

     

    CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS            
    (Dollars in Thousands)                      
      For the Twelve Months Ended
      December 31, 2019   December 31, 2018
      Average
    Balance
      Interest
     Income /
    Expense
      Average
    Rate
      Average
    Balance
      Interest
     Income /
    Expense
      Average
    Rate
    Assets:                      
    Interest-bearing time deposits $ 211,683     $ 4,225     2.00 %   $ 110,232     $ 2,241     2.03 %
    Federal Home Loan Bank stock 25,645     1,370     5.34     24,538     1,234     5.03  
    Investment Securities: (1)                      
    Taxable 1,101,247     27,815     2.53     841,203     21,597     2.57  
    Tax-Exempt (2) 987,006     40,070     4.06     762,623     32,290     4.23  
    Total Investment Securities 2,088,253     67,885     3.25     1,603,826     53,887     3.36  
    Loans held for sale 18,402     780     4.24     11,425     540     4.73  
    Loans: (3)                      
    Commercial 5,631,146     306,139     5.44     5,143,576     274,302     5.33  
    Real Estate Mortgage 811,188     37,782     4.66     733,709     33,549     4.57  
    Installment 701,459     38,071     5.43     640,310     34,110     5.33  
    Tax-Exempt (2) 527,995     22,238     4.21     468,751     18,813     4.01  
    Total Loans 7,690,190     405,010     5.27     6,997,771     361,314     5.16  
    Total Earning Assets 10,015,771     478,490     4.78 %   8,736,367     418,676     4.79 %
    Net unrealized gain on securities available for sale 17,676             (14,790 )        
    Allowance for loan losses (81,000 )           (77,444 )        
    Cash and cash equivalents 142,857             131,925          
    Premises and equipment 99,343             94,567          
    Other assets 896,673             818,432          
    Total Assets $ 11,091,320             $ 9,689,057          
    Liabilities:                      
    Interest-bearing deposits:                      
    Interest-bearing deposits $ 3,070,861     $ 33,921     1.10 %   $ 2,319,081     $ 17,577     0.76 %
    Money market deposits 1,300,064     14,111     1.09     1,097,762     6,721     0.61  
    Savings deposits 1,242,468     9,464     0.76     1,065,031     5,230     0.49  
    Certificates and other time deposits 1,673,292     34,089     2.04     1,514,271     22,014     1.45  
    Total Interest-bearing Deposits 7,286,685     91,585     1.26     5,996,145     51,542     0.86  
    Borrowings 644,729     17,160     2.66     718,061     17,545     2.44  
    Total Interest-bearing Liabilities 7,931,414     108,745     1.37     6,714,206     69,087     1.03  
    Noninterest-bearing deposits 1,495,949             1,573,337          
    Other liabilities 94,342             57,653          
    Total Liabilities 9,521,705             8,345,196          
    Stockholders' Equity 1,569,615             1,343,861          
    Total Liabilities and Stockholders' Equity $ 11,091,320     108,745         $ 9,689,057     69,087      
    Net Interest Income (FTE)     $ 369,745             $ 349,589      
    Net Interest Spread (FTE) (4)         3.41 %           3.76 %
                           
    Net Interest Margin (FTE):                      
    Interest Income (FTE) / Average Earning Assets         4.78 %           4.79 %
    Interest Expense / Average Earning Assets         1.09 %           0.79 %
    Net Interest Margin (FTE) (5)         3.69 %           4.00 %
                           
    (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 21 percent for 2019 and 2018.  These totals equal $13,085 and $10,732 for the twelve months ended December 31, 2019 and 2018, 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.

    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



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    First Merchants Corporation Announces 2019 Results MUNCIE, Ind., Jan. 30, 2020 (GLOBE NEWSWIRE) - First Merchants Corporation (NASDAQ - FRME) has reported fourth quarter 2019 net income of $47.8 million compared to $41.7 million during the same period in 2018.  Earnings per share for the period …