Attached files
| file | filename |
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| 8-K - FIRST MERCHANTS CORP - 2ND QTR 2014 EARNINGS RELEASE - FIRST MERCHANTS CORP | f8k2ndqtr2014earningsrelea.htm |
N / E / W / S R / E / L / E / A / S / E
July 24, 2014
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 SECOND QUARTER 2014 EARNINGS PER SHARE INCREASE OF NEARLY 21 PERCENT AS RETURN ON ASSETS TOTALED 1.10 PERCENT
First Merchants Corporation (NASDAQ - FRME) has reported second quarter 2014 net income of $15.2 million, compared to $10 million during the same period in 2013. Earnings per share for the period totaled $.41 per share an increase of nearly 21 percent over $.34 per share earned in the second quarter of 2013. Year-to-date net income totaled $28.8 million, compared to $21 million in 2013. Earnings per share totaled $.79 per share through six months of 2014 compared to $.72 in 2013.
Total assets equaled $5.6 billion as of quarter-end and loans were $3.7 billion. The Corporation’s loan portfolio increased, by $803 million, over the past twelve months. Of the increase, $206 million was the result of organic growth and $597 million resulted from the acquisition of CFS Bancorp in November of 2013. The Corporation’s loan-to-deposit ratio is 86 percent and the loan-to-asset ratio is 66 percent.
Michael C. Rechin, President and Chief Executive Officer, stated, “Second quarter 2014 results were in line with our expectations and include the successful realization of our projected cost savings related to our Citizens integration.” Rechin also added, “Management was pleased by organic loan growth throughout our franchise and optimistic about the acceleration the recently announced Community Bank of Noblesville merger will add to our Hamilton county business and the greater Indianapolis MSA .”
Net-interest income totaled $46.1 million for the quarter, and net-interest margin remained strong during the quarter totaling 3.89 percent, as yields on earning assets totaled 4.33 percent and the cost of supporting liabilities totaled .44 percent.
Non-interest income totaled $15.9 million for the quarter, an increase from the second quarter of 2013 total of $14.1 million. Gains on sale of mortgage loans, during the quarter, declined by $1.3 million from the second quarter of 2013. Non-interest expense totaled $41.3 million for the quarter an improvement over the first quarter of 2014 of $1.8 million. When adjusted for other real estate owned expenses, core expenses declined on a linked quarter-over-quarter basis by $2.7 million.
The Corporation did not make a provision to the allowance for loan losses during the quarter due to improvements in non-accrual loan totals as well as criticized and classified loans. The allowance for loan losses totaled $68.4 million, or 1.83 percent of total loans and 133 percent of non-accrual loans. Non-performing assets have declined by $10.4 million since the close of our Citizens acquisition at year-end and now total $71.3 million.
As of June 30, 2014, the Corporation’s total risk-based capital equaled 15.11 percent, Tier 1 common risk-based capital equaled 11.00 percent, and tangible common equity ratio totaled 8.74 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 24, 2014.
To participate, dial (Toll Free) 877-507-0578 and reference First Merchants Corporation's second quarter earnings release. International callers please call +1 412-317-1073. A replay of the call will be available until July 24, 2015. 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 10048248.
In order to view the web cast and presentation slides, please go to http://services.choruscall.com/links/frme140724.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) | June 30, | ||||||
2014 | 2013 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 115,891 | $ | 69,404 | |||
Interest-bearing time deposits | 27,856 | 59,898 | |||||
Investment securities | 1,214,087 | 908,992 | |||||
Mortgage loans held for sale | 7,370 | 14,531 | |||||
Loans | 3,722,733 | 2,920,080 | |||||
Less: Allowance for loan losses | (68,367 | ) | (68,202 | ) | |||
Net loans | 3,654,366 | 2,851,878 | |||||
Premises and equipment | 74,856 | 54,165 | |||||
Federal Reserve and Federal Home Loan Bank stock | 43,127 | 32,790 | |||||
Interest receivable | 18,341 | 15,186 | |||||
Core deposit intangibles and goodwill | 201,583 | 148,759 | |||||
Cash surrender value of life insurance | 165,974 | 126,710 | |||||
Other real estate owned | 18,621 | 11,765 | |||||
Tax asset, deferred and receivable | 44,622 | 30,959 | |||||
Other assets | 28,426 | 13,227 | |||||
TOTAL ASSETS | $ | 5,615,120 | $ | 4,338,264 | |||
LIABILITIES | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 917,825 | $ | 741,095 | |||
Interest-bearing | 3,411,785 | 2,591,698 | |||||
Total Deposits | 4,329,610 | 3,332,793 | |||||
Borrowings: | |||||||
Federal funds purchased | 100,000 | 57,085 | |||||
Securities sold under repurchase agreements | 133,137 | 161,779 | |||||
Federal Home Loan Bank advances | 220,765 | 92,743 | |||||
Subordinated debentures and term loans | 126,874 | 111,778 | |||||
Total Borrowings | 580,776 | 423,385 | |||||
Interest payable | 2,489 | 1,150 | |||||
Other liabilities | 31,649 | 41,643 | |||||
Total Liabilities | 4,944,524 | 3,798,971 | |||||
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 - 0 and 68,087 shares | 68,087 | ||||||
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 - 36,052,209 and 28,801,848 shares | 4,507 | 3,600 | |||||
Additional paid-in capital | 394,774 | 257,626 | |||||
Retained earnings | 266,980 | 225,034 | |||||
Accumulated other comprehensive income (loss) | 4,210 | (15,179 | ) | ||||
Total Stockholders' Equity | 670,596 | 539,293 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 5,615,120 | $ | 4,338,264 | |||
CONSOLIDATED STATEMENTS OF INCOME | Three Months Ended | Six Months Ended | |||||||||||||
(Dollars In Thousands, Except Per Share Amounts) | June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
INTEREST INCOME | |||||||||||||||
Loans receivable: | |||||||||||||||
Taxable | $ | 42,323 | $ | 34,018 | $ | 84,348 | $ | 71,177 | |||||||
Tax-exempt | 58 | 113 | 119 | 230 | |||||||||||
Investment securities: | |||||||||||||||
Taxable | 5,046 | 3,577 | 9,856 | 7,195 | |||||||||||
Tax-exempt | 3,570 | 2,515 | 7,008 | 4,969 | |||||||||||
Deposits with financial institutions | 35 | 62 | 58 | 81 | |||||||||||
Federal Reserve and Federal Home Loan Bank stock | 495 | 368 | 1,147 | 739 | |||||||||||
Total Interest Income | 51,527 | 40,653 | 102,536 | 84,391 | |||||||||||
INTEREST EXPENSE | |||||||||||||||
Deposits | 2,874 | 2,599 | 5,423 | 5,490 | |||||||||||
Federal funds purchased | 23 | 1 | 72 | 12 | |||||||||||
Securities sold under repurchase agreements | 187 | 208 | 383 | 402 | |||||||||||
Federal Home Loan Bank advances | 676 | 462 | 1,358 | 921 | |||||||||||
Subordinated debentures and term loans | 1,648 | 733 | 3,289 | 1,458 | |||||||||||
Total Interest Expense | 5,408 | 4,003 | 10,525 | 8,283 | |||||||||||
NET INTEREST INCOME | 46,119 | 36,650 | 92,011 | 76,108 | |||||||||||
Provision for loan losses | 1,997 | 4,099 | |||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 46,119 | 34,653 | 92,011 | 72,009 | |||||||||||
OTHER INCOME | |||||||||||||||
Service charges on deposit accounts | 4,098 | 2,912 | 7,649 | 5,641 | |||||||||||
Fiduciary activities | 2,360 | 2,264 | 4,572 | 4,371 | |||||||||||
Other customer fees | 4,049 | 2,816 | 7,782 | 5,596 | |||||||||||
Commission income | 1,886 | 1,748 | 4,154 | 3,920 | |||||||||||
Earnings on cash surrender value of life insurance | 653 | 610 | 1,401 | 1,310 | |||||||||||
Net gains and fees on sales of loans | 1,159 | 2,457 | 1,882 | 4,835 | |||||||||||
Net realized gains on sales of available for sale securities | 844 | 239 | 1,425 | 487 | |||||||||||
Other income | 884 | 1,013 | 2,254 | 1,776 | |||||||||||
Total Other Income | 15,933 | 14,059 | 31,119 | 27,936 | |||||||||||
OTHER EXPENSES | |||||||||||||||
Salaries and employee benefits | 23,430 | 20,536 | 48,731 | 41,327 | |||||||||||
Net occupancy | 3,204 | 2,267 | 7,142 | 4,869 | |||||||||||
Equipment | 2,096 | 1,742 | 4,835 | 3,516 | |||||||||||
Marketing | 789 | 535 | 1,558 | 1,002 | |||||||||||
Outside data processing fees | 2,039 | 1,391 | 3,870 | 2,871 | |||||||||||
Printing and office supplies | 393 | 311 | 851 | 642 | |||||||||||
Core deposit amortization | 592 | 383 | 1,184 | 770 | |||||||||||
FDIC assessments | 863 | 674 | 1,923 | 1,418 | |||||||||||
Other real estate owned and credit-related expenses | 2,613 | 1,479 | 4,370 | 3,345 | |||||||||||
Professional and other outside services | 1,531 | 1,833 | 2,910 | 3,492 | |||||||||||
Other expenses | 3,700 | 2,591 | 6,965 | 5,190 | |||||||||||
Total Other Expenses | 41,250 | 33,742 | 84,339 | 68,442 | |||||||||||
INCOME BEFORE INCOME TAX | 20,802 | 14,970 | 38,791 | 31,503 | |||||||||||
Income tax expense | 5,642 | 4,155 | 10,011 | 8,823 | |||||||||||
NET INCOME | 15,160 | 10,815 | 28,780 | 22,680 | |||||||||||
Preferred stock dividends | (852 | ) | (1,709 | ) | |||||||||||
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 15,160 | $ | 9,963 | $ | 28,780 | $ | 20,971 | |||||||
Per Share Data: | |||||||||||||||
Basic Net Income Available to Common Stockholders | $ | 0.42 | $ | 0.35 | $ | 0.80 | $ | 0.73 | |||||||
Diluted Net Income Available to Common Stockholders | $ | 0.41 | $ | 0.34 | $ | 0.79 | $ | 0.72 | |||||||
Cash Dividends Paid | $ | 0.08 | $ | 0.05 | $ | 0.13 | $ | 0.08 | |||||||
Average Diluted Shares Outstanding (in thousands) | 36,294 | 29,024 | 36,278 | 28,997 | |||||||||||
FINANCIAL HIGHLIGHTS | |||||||||||||||
(Dollars in thousands) | Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
NET CHARGE OFF'S | $ | 1,216 | $ | 2,332 | $ | (497 | ) | $ | 5,263 | ||||||
AVERAGE BALANCES: | |||||||||||||||
Total Assets | $ | 5,520,483 | $ | 4,329,579 | $ | 5,460,419 | $ | 4,289,490 | |||||||
Total Loans | 3,680,521 | 2,909,688 | 3,648,480 | 2,909,901 | |||||||||||
Total Earning Assets | 4,944,516 | 3,922,303 | 4,875,474 | 3,883,239 | |||||||||||
Total Deposits | 4,365,199 | 3,385,922 | 4,290,853 | 3,351,508 | |||||||||||
Total Stockholders' Equity | 662,643 | 542,921 | 653,820 | 538,384 | |||||||||||
FINANCIAL RATIOS: | |||||||||||||||
Return on Average Assets | 1.10 | % | 0.92 | % | 1.05 | % | 0.98 | % | |||||||
Return on Average Stockholders' Equity | 9.15 | 7.34 | 8.80 | 7.79 | |||||||||||
Return on Average Common Stockholders' Equity | 9.15 | 8.40 | 8.81 | 8.93 | |||||||||||
Average Earning Assets to Average Assets | 89.57 | 90.59 | 89.29 | 90.53 | |||||||||||
Allowance for Loan Losses as % of Total Loans | 1.83 | 2.32 | 1.83 | 2.32 | |||||||||||
Net Charge Off's as % of Average Loans (Annualized) | 0.13 | 0.32 | (0.03 | ) | 0.36 | ||||||||||
Average Stockholders' Equity to Average Assets | 12.00 | 12.54 | 11.97 | 12.55 | |||||||||||
Tax Equivalent Yield on Earning Assets | 4.33 | 4.29 | 4.36 | 4.49 | |||||||||||
Cost of Supporting Liabilities | 0.44 | 0.41 | 0.43 | 0.43 | |||||||||||
Net Interest Margin (FTE) on Earning Assets | 3.89 | 3.88 | 3.93 | 4.06 | |||||||||||
Tangible Book Value Per Share | $ | 13.14 | $ | 11.27 | $ | 13.14 | $ | 11.27 | |||||||
NON-PERFORMING ASSETS | |||||||||||||||||||
(Dollars In Thousands) | June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||
2014 | 2014 | 2013 | 2013 | 2013 | |||||||||||||||
Non-Accrual Loans | $ | 51,289 | $ | 55,686 | $ | 56,402 | $ | 34,992 | $ | 38,971 | |||||||||
Renegotiated Loans | 1,359 | 378 | 3,048 | 3,269 | 4,407 | ||||||||||||||
Non-Performing Loans (NPL) | 52,648 | 56,064 | 59,450 | 38,261 | 43,378 | ||||||||||||||
Other Real Estate Owned | 18,621 | 21,077 | 22,246 | 12,052 | 11,765 | ||||||||||||||
Non-Performing Assets (NPA) | 71,269 | 77,141 | 81,696 | 50,313 | 55,143 | ||||||||||||||
90+ Days Delinquent | 1,135 | 1,709 | 1,350 | 837 | 1,072 | ||||||||||||||
NPAS & 90 Day Delinquent | $ | 72,404 | $ | 78,850 | $ | 83,046 | $ | 51,150 | $ | 56,215 | |||||||||
Loan Loss Reserve | $ | 68,367 | $ | 69,583 | $ | 67,870 | $ | 66,224 | $ | 68,202 | |||||||||
Quarterly Net Charge-offs | 1,216 | (1,713 | ) | (630 | ) | 3,511 | 2,332 | ||||||||||||
NPAs / Actual Assets % | 1.27 | % | 1.41 | % | 1.50 | % | 1.16 | % | 1.27 | % | |||||||||
NPAs & 90 Day / Actual Assets % | 1.29 | % | 1.45 | % | 1.53 | % | 1.18 | % | 1.30 | % | |||||||||
NPAs / Actual Loans and OREO % | 1.90 | % | 2.12 | % | 2.23 | % | 1.71 | % | 1.87 | % | |||||||||
Loan Loss Reserves / Actual Loans (%) | 1.83 | % | 1.92 | % | 1.87 | % | 2.26 | % | 2.32 | % | |||||||||
Net Charge Off's as % of Average Loans (Annualized) | 0.13 | % | (0.19 | )% | (0.08 | )% | 0.48 | % | 0.32 | % | |||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||||||||||
(Dollars In Thousands) | June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||
2014 | 2014 | 2013 | 2013 | 2013 | |||||||||||||||
ASSETS | |||||||||||||||||||
Cash and cash equivalents | $ | 115,891 | $ | 112,920 | $ | 109,434 | $ | 92,341 | $ | 69,404 | |||||||||
Interest-bearing time deposits | 27,856 | 37,078 | 55,069 | 18,875 | 59,898 | ||||||||||||||
Investment securities | 1,214,087 | 1,149,977 | 1,095,579 | 914,135 | 908,992 | ||||||||||||||
Mortgage loans held for sale | 7,370 | 6,586 | 5,331 | 5,312 | 14,531 | ||||||||||||||
Loans | 3,722,733 | 3,616,627 | 3,632,409 | 2,925,457 | 2,920,080 | ||||||||||||||
Less: Allowance for loan losses | (68,367 | ) | (69,583 | ) | (67,870 | ) | (66,224 | ) | (68,202 | ) | |||||||||
Net loans | 3,654,366 | 3,547,044 | 3,564,539 | 2,859,233 | 2,851,878 | ||||||||||||||
Premises and equipment | 74,856 | 74,847 | 74,454 | 54,386 | 54,165 | ||||||||||||||
Federal Reserve and Federal Home Loan Bank stock | 43,127 | 38,990 | 38,990 | 32,790 | 32,790 | ||||||||||||||
Interest receivable | 18,341 | 18,001 | 18,672 | 16,171 | 15,186 | ||||||||||||||
Core deposit intangibles and goodwill | 201,583 | 202,175 | 202,766 | 148,376 | 148,759 | ||||||||||||||
Cash surrender value of life insurance | 165,974 | 165,320 | 164,571 | 127,322 | 126,710 | ||||||||||||||
Other real estate owned | 18,621 | 21,077 | 22,246 | 12,052 | 11,765 | ||||||||||||||
Tax asset, deferred and receivable | 44,622 | 50,684 | 56,614 | 31,385 | 30,959 | ||||||||||||||
Other assets | 28,426 | 28,237 | 28,997 | 13,533 | 13,227 | ||||||||||||||
TOTAL ASSETS | $ | 5,615,120 | $ | 5,452,936 | $ | 5,437,262 | $ | 4,325,911 | $ | 4,338,264 | |||||||||
LIABILITIES | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Noninterest-bearing | 917,825 | 936,741 | 930,772 | 790,174 | 741,095 | ||||||||||||||
Interest-bearing | 3,411,785 | 3,346,438 | 3,300,696 | 2,465,672 | 2,591,698 | ||||||||||||||
Total Deposits | 4,329,610 | 4,283,179 | 4,231,468 | 3,255,846 | 3,332,793 | ||||||||||||||
Borrowings: | |||||||||||||||||||
Federal funds purchased | 100,000 | 48,357 | 125,645 | 115,938 | 57,085 | ||||||||||||||
Securities sold under repurchase agreements | 133,137 | 137,381 | 148,672 | 123,935 | 161,779 | ||||||||||||||
Federal Home Loan Bank advances | 220,765 | 170,887 | 122,140 | 172,292 | 92,743 | ||||||||||||||
Subordinated debentures and term loans | 126,874 | 127,172 | 126,807 | 111,849 | 111,778 | ||||||||||||||
Total Borrowings | 580,776 | 483,797 | 523,264 | 524,014 | 423,385 | ||||||||||||||
Interest payable | 2,489 | 3,192 | 1,771 | 1,155 | 1,150 | ||||||||||||||
Other liabilities | 31,649 | 30,657 | 45,836 | 31,427 | 41,643 | ||||||||||||||
Total Liabilities | 4,944,524 | 4,800,825 | 4,802,339 | 3,812,442 | 3,798,971 | ||||||||||||||
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 | 34,043 | 68,087 | |||||||||||||||||
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 | 4,507 | 4,502 | 4,490 | 3,603 | 3,600 | ||||||||||||||
Additional paid-in capital | 394,774 | 393,765 | 393,783 | 258,350 | 257,626 | ||||||||||||||
Retained earnings | 266,980 | 254,735 | 242,935 | 233,546 | 225,034 | ||||||||||||||
Accumulated other comprehensive income (loss) | 4,210 | (1,016 | ) | (6,410 | ) | (16,198 | ) | (15,179 | ) | ||||||||||
Total Stockholders' Equity | 670,596 | 652,111 | 634,923 | 513,469 | 539,293 | ||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 5,615,120 | $ | 5,452,936 | $ | 5,437,262 | $ | 4,325,911 | $ | 4,338,264 | |||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||
(Dollars In Thousands, Except Per Share Amounts) | June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||
2014 | 2014 | 2013 | 2013 | 2013 | |||||||||||||||
INTEREST INCOME | |||||||||||||||||||
Loans receivable: | |||||||||||||||||||
Taxable | $ | 42,323 | $ | 42,025 | $ | 38,027 | $ | 33,548 | $ | 34,018 | |||||||||
Tax-exempt | 58 | 61 | 78 | 85 | 113 | ||||||||||||||
Investment securities: | |||||||||||||||||||
Taxable | 5,046 | 4,810 | 4,143 | 3,876 | 3,577 | ||||||||||||||
Tax-exempt | 3,570 | 3,438 | 3,020 | 2,840 | 2,515 | ||||||||||||||
Deposits with financial institutions | 35 | 23 | 59 | 18 | 62 | ||||||||||||||
Federal Reserve and Federal Home Loan Bank stock | 495 | 652 | 380 | 369 | 368 | ||||||||||||||
Total Interest Income | 51,527 | 51,009 | 45,707 | 40,736 | 40,653 | ||||||||||||||
INTEREST EXPENSE | |||||||||||||||||||
Deposits | 2,874 | 2,549 | 2,350 | 2,213 | 2,599 | ||||||||||||||
Federal funds purchased | 23 | 49 | 18 | 72 | 1 | ||||||||||||||
Securities sold under repurchase agreements | 187 | 196 | 193 | 192 | 208 | ||||||||||||||
Federal Home Loan Bank advances | 676 | 682 | 669 | 506 | 462 | ||||||||||||||
Subordinated debentures and term loans | 1,648 | 1,641 | 1,342 | 731 | 733 | ||||||||||||||
Total Interest Expense | 5,408 | 5,117 | 4,572 | 3,714 | 4,003 | ||||||||||||||
NET INTEREST INCOME | 46,119 | 45,892 | 41,135 | 37,022 | 36,650 | ||||||||||||||
Provision for loan losses | 1,016 | 1,533 | 1,997 | ||||||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 46,119 | 45,892 | 40,119 | 35,489 | 34,653 | ||||||||||||||
OTHER INCOME | |||||||||||||||||||
Service charges on deposit accounts | 4,098 | 3,551 | 3,639 | 3,120 | 2,912 | ||||||||||||||
Fiduciary activities | 2,360 | 2,212 | 2,237 | 1,986 | 2,264 | ||||||||||||||
Other customer fees | 4,049 | 3,733 | 3,371 | 2,899 | 2,816 | ||||||||||||||
Commission income | 1,886 | 2,268 | 1,585 | 1,636 | 1,748 | ||||||||||||||
Earnings on cash surrender value of life insurance | 653 | 748 | 692 | 611 | 610 | ||||||||||||||
Net gains and fees on sales of loans | 1,159 | 723 | 1,003 | 1,673 | 2,457 | ||||||||||||||
Net realized gains on sales of available for sale securities | 844 | 581 | 239 | ||||||||||||||||
Other income | 884 | 1,370 | 2,546 | (125 | ) | 1,013 | |||||||||||||
Total Other Income | 15,933 | 15,186 | 15,073 | 11,800 | 14,059 | ||||||||||||||
OTHER EXPENSES | |||||||||||||||||||
Salaries and employee benefits | 23,430 | 25,301 | 23,470 | 20,616 | 20,536 | ||||||||||||||
Net occupancy | 3,204 | 3,938 | 2,992 | 2,430 | 2,267 | ||||||||||||||
Equipment | 2,096 | 2,739 | 2,369 | 1,852 | 1,742 | ||||||||||||||
Marketing | 789 | 769 | 675 | 559 | 535 | ||||||||||||||
Outside data processing fees | 2,039 | 1,831 | 1,205 | 1,515 | 1,391 | ||||||||||||||
Printing and office supplies | 393 | 458 | 378 | 320 | 311 | ||||||||||||||
Core deposit amortization | 592 | 592 | 496 | 383 | 383 | ||||||||||||||
FDIC assessments | 863 | 1,060 | 767 | 677 | 674 | ||||||||||||||
Other real estate owned and credit-related expenses | 2,613 | 1,757 | 1,668 | 1,648 | 1,479 | ||||||||||||||
Professional and other outside services | 1,531 | 1,379 | 3,361 | 1,444 | 1,833 | ||||||||||||||
Other expenses | 3,700 | 3,265 | 3,177 | 2,775 | 2,591 | ||||||||||||||
Total Other Expenses | 41,250 | 43,089 | 40,558 | 34,219 | 33,742 | ||||||||||||||
INCOME BEFORE INCOME TAX | 20,802 | 17,989 | 14,634 | 13,070 | 14,970 | ||||||||||||||
Income tax expense | 5,642 | 4,369 | 3,187 | 2,667 | 4,155 | ||||||||||||||
NET INCOME | 15,160 | 13,620 | 11,447 | 10,403 | 10,815 | ||||||||||||||
Preferred stock dividends | (241 | ) | (430 | ) | (852 | ) | |||||||||||||
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 15,160 | $ | 13,620 | $ | 11,206 | $ | 9,973 | $ | 9,963 | |||||||||
Per Share Data: | |||||||||||||||||||
Basic Net Income Available to Common Stockholders | $ | 0.42 | $ | 0.38 | $ | 0.34 | $ | 0.35 | $ | 0.35 | |||||||||
Diluted Net Income Available to Common Stockholders | $ | 0.41 | $ | 0.38 | $ | 0.34 | $ | 0.35 | $ | 0.34 | |||||||||
Cash Dividends Paid | $ | 0.08 | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | |||||||||
Average Diluted Shares Outstanding (in thousands) | 36,294 | 36,261 | 32,913 | 29,081 | 29,024 | ||||||||||||||
FINANCIAL RATIOS: | |||||||||||||||||||
Return on Average Assets | 1.10 | % | 1.01 | % | 0.91 | % | 0.93 | % | 0.92 | % | |||||||||
Return on Average Stockholders' Equity | 9.15 | 8.45 | 7.78 | 7.85 | 7.34 | ||||||||||||||
Return on Average Common Stockholders' Equity | 9.15 | 8.45 | 8.05 | 8.42 | 8.40 | ||||||||||||||
Average Earning Assets to Average Assets | 89.57 | 89.00 | 89.08 | 90.71 | 90.59 | ||||||||||||||
Allowance for Loan Losses as % of Total Loans | 1.83 | 1.92 | 1.87 | 2.26 | 2.32 | ||||||||||||||
Net Charge Off's as % of Average Loans (Annualized) | 0.13 | (0.19 | ) | (0.08 | ) | 0.48 | 0.32 | ||||||||||||
Average Stockholders' Equity to Average Assets | 12.00 | 11.94 | 11.64 | 11.85 | 12.54 | ||||||||||||||
Tax Equivalent Yield on Earning Assets | 4.33 | 4.40 | 4.30 | 4.35 | 4.29 | ||||||||||||||
Cost of Supporting Liabilities | 0.44 | 0.43 | 0.41 | 0.38 | 0.41 | ||||||||||||||
Net Interest Margin (FTE) on Earning Assets | 3.89 | 3.97 | 3.89 | 3.97 | 3.88 | ||||||||||||||
Tangible Book Value Per Share | $ | 13.14 | $ | 12.63 | $ | 12.17 | $ | 11.56 | $ | 11.27 | |||||||||
LOANS | |||||||||||||||||||
(Dollars In Thousands) | June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||
2014 | 2014 | 2013 | 2013 | 2013 | |||||||||||||||
Commercial and industrial loans | $ | 857,844 | $ | 787,390 | $ | 761,705 | $ | 652,356 | $ | 657,764 | |||||||||
Agricultural production financing and other loans to farmers | 102,270 | 99,226 | 114,348 | 98,489 | 105,175 | ||||||||||||||
Real estate loans: | |||||||||||||||||||
Construction | 165,388 | 155,117 | 177,082 | 149,875 | 101,909 | ||||||||||||||
Commercial and farmland | 1,621,436 | 1,606,735 | 1,611,809 | 1,264,180 | 1,272,761 | ||||||||||||||
Residential | 629,162 | 626,202 | 616,385 | 452,277 | 460,108 | ||||||||||||||
Home Equity | 261,811 | 256,790 | 255,223 | 206,816 | 203,788 | ||||||||||||||
Individuals' loans for household and other personal expenditures | 61,533 | 61,742 | 69,783 | 70,380 | 79,258 | ||||||||||||||
Lease financing receivables, net of unearned income | 1,231 | 1,378 | 1,545 | 1,815 | 1,828 | ||||||||||||||
Other loans | 22,058 | 22,047 | 24,529 | 29,269 | 37,489 | ||||||||||||||
Loans | 3,722,733 | 3,616,627 | 3,632,409 | 2,925,457 | 2,920,080 | ||||||||||||||
Allowance for loan losses | (68,367 | ) | (69,583 | ) | (67,870 | ) | (66,224 | ) | (68,202 | ) | |||||||||
NET LOANS | $ | 3,654,366 | $ | 3,547,044 | $ | 3,564,539 | $ | 2,859,233 | $ | 2,851,878 | |||||||||
DEPOSITS | |||||||||||||||||||
(Dollars In Thousands) | June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||
2014 | 2014 | 2013 | 2013 | 2013 | |||||||||||||||
Demand deposits | $ | 2,041,183 | $ | 1,966,895 | $ | 2,018,650 | $ | 1,610,662 | $ | 1,648,712 | |||||||||
Savings deposits | 1,251,277 | 1,282,702 | 1,257,994 | 937,521 | 916,481 | ||||||||||||||
Certificates and other time deposits of $100,000 or more | 251,585 | 265,683 | 272,660 | 190,866 | 205,467 | ||||||||||||||
Other certificates and time deposits | 534,344 | 568,160 | 595,110 | 422,151 | 448,885 | ||||||||||||||
Brokered deposits | 251,221 | 199,739 | 87,054 | 94,646 | 113,248 | ||||||||||||||
TOTAL DEPOSITS | $ | 4,329,610 | $ | 4,283,179 | $ | 4,231,468 | $ | 3,255,846 | $ | 3,332,793 | |||||||||
CONSOLIDATED BALANCE SHEETS (AVERAGE) | |||||||||||||||||||
(Dollars In Thousands) | June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||
2014 | 2014 | 2013 | 2013 | 2013 | |||||||||||||||
ASSETS | |||||||||||||||||||
Cash and cash equivalents | $ | 79,974 | $ | 95,255 | $ | 91,121 | $ | 69,974 | $ | 69,045 | |||||||||
Interest-bearing time deposits | 59,030 | 44,313 | 116,839 | 24,497 | 109,522 | ||||||||||||||
Investment securities | 1,170,976 | 1,109,914 | 963,478 | 908,419 | 880,241 | ||||||||||||||
Mortgage loans held for sale | 5,583 | 4,936 | 5,069 | 11,063 | 17,489 | ||||||||||||||
Loans | 3,674,938 | 3,611,148 | 3,287,924 | 2,907,144 | 2,892,199 | ||||||||||||||
Less: Allowance for loan losses | (69,188 | ) | (68,806 | ) | (66,949 | ) | (69,117 | ) | (69,296 | ) | |||||||||
Net loans | 3,605,750 | 3,542,342 | 3,220,975 | 2,838,027 | 2,822,903 | ||||||||||||||
Premises and equipment | 74,869 | 74,631 | 66,383 | 54,757 | 53,896 | ||||||||||||||
Federal Reserve and Federal Home Loan Bank stock | 42,809 | 38,990 | 36,095 | 32,790 | 32,789 | ||||||||||||||
Interest receivable | 17,919 | 17,118 | 17,359 | 14,026 | 13,864 | ||||||||||||||
Core deposit intangibles and goodwill | 201,864 | 202,528 | 177,518 | 148,571 | 148,954 | ||||||||||||||
Cash surrender value of life insurance | 165,545 | 164,842 | 152,972 | 126,922 | 126,315 | ||||||||||||||
Other real estate owned | 19,539 | 21,867 | 16,557 | 11,669 | 12,202 | ||||||||||||||
Tax asset, deferred and receivable | 48,296 | 54,753 | 49,525 | 32,484 | 27,676 | ||||||||||||||
Other assets | 28,329 | 28,199 | 36,383 | 13,783 | 14,683 | ||||||||||||||
TOTAL ASSETS | $ | 5,520,483 | $ | 5,399,688 | $ | 4,950,274 | $ | 4,286,982 | $ | 4,329,579 | |||||||||
LIABILITIES | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Noninterest-bearing | 927,238 | 915,635 | 883,044 | 775,545 | 753,695 | ||||||||||||||
Interest-bearing | 3,437,961 | 3,300,046 | 2,977,408 | 2,519,824 | 2,632,227 | ||||||||||||||
Total Deposits | 4,365,199 | 4,215,681 | 3,860,452 | 3,295,369 | 3,385,922 | ||||||||||||||
Borrowings: | |||||||||||||||||||
Federal funds purchased | 28,628 | 49,140 | 21,367 | 68,236 | 2,267 | ||||||||||||||
Securities sold under repurchase agreements | 132,433 | 147,492 | 135,697 | 126,938 | 158,377 | ||||||||||||||
Federal Home Loan Bank advances | 171,372 | 170,125 | 149,278 | 139,941 | 93,014 | ||||||||||||||
Subordinated debentures and term loans | 127,169 | 126,820 | 121,795 | 111,779 | 111,778 | ||||||||||||||
Total Borrowings | 459,602 | 493,577 | 428,137 | 446,894 | 365,436 | ||||||||||||||
Interest payable | 2,984 | 3,047 | 1,811 | 1,592 | 1,808 | ||||||||||||||
Other liabilities | 30,055 | 42,484 | 83,717 | 35,093 | 33,492 | ||||||||||||||
Total Liabilities | 4,857,840 | 4,754,789 | 4,374,117 | 3,778,948 | 3,786,658 | ||||||||||||||
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 | 19,242 | 34,413 | 68,087 | ||||||||||||||||
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 | 4,503 | 4,495 | 4,075 | 3,601 | 3,598 | ||||||||||||||
Additional paid-in capital | 394,121 | 393,590 | 323,196 | 257,847 | 257,147 | ||||||||||||||
Retained earnings | 261,742 | 249,978 | 245,083 | 230,077 | 221,606 | ||||||||||||||
Accumulated other comprehensive income (loss) | 2,152 | (3,289 | ) | (15,564 | ) | (18,029 | ) | (7,642 | ) | ||||||||||
Total Stockholders' Equity | 662,643 | 644,899 | 576,157 | 508,034 | 542,921 | ||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 5,520,483 | $ | 5,399,688 | $ | 4,950,274 | $ | 4,286,982 | $ | 4,329,579 | |||||||||