First Merchants Corporation (NASDAQ: FRME) reported record 4th quarter 2016 net income of $22.3 million, compared to $14.2 million during the 4th quarter of 2015. Earnings per share for the period totaled a record $.55 per share, an increase of $.18 per share, or 48.6 percent, over the same period in 2015.
Year-to-date net income totaled a record $81.1 million, compared to $65.4 million during the same period in 2015. Earnings per share for the full year of 2016 totaled a record $1.98 per share, an increase of $.26 per share, or 15.1 percent over the same period in 2015.
Michael C. Rechin, President and Chief Executive Officer, stated, “First Merchants’ 2016 results included record performance throughout nearly every category of the balance sheet and income statement which resulted in successful achievement of our year’s high performance targets. Crisp execution, the economic and interest rate outlook, combined with our recently announced Columbus, Ohio expansion, position us to deliver sustained value through 2017 and beyond.”
Total assets and total loans reached new heights totaling $7.2 billion and $5.1 billion, respectively, as of December 31, 2016; compared to $6.8 billion and $4.7 billion, as of year-end 2015. The organic growth equaled $451 million, or 6.7 percent in total assets and $446 million, or 9.5 percent in total loans. Total deposits also increased during the year by $267 million, or 5 percent totaling $5.6 billion and tangible common equity increased to record levels totaling $643 million and $15.85 per share.
Net-interest income totaled a record $226.5 million for the full year of 2016, an increase of $30.1 million over the $196.4 million total from 2015. The increase can be attributed to several factors including the closing of our Ameriana Bancorp acquisition on December 31, 2015, organic earning asset growth and the expansion of our net-interest margin of 9 basis points. Net-interest margin for 2016 totaled 3.89 percent as yields on earning assets totaled 4.32 percent and the cost of supporting liabilities totaled .43 percent. When adjusted for fair value accretion, net-interest margin totaled 3.69 percent for the year, 4 basis points more than the full year 2015 of 3.65.
Non-interest income totaled $65.2 million for the full year of 2016. When normalized for insurance commission income, the gains on the sale of First Merchants Insurance Group, the cancellation of trust preferred debt, and sales of securities, non-interest income increased by 15.1 percent.
Non-interest expense totaled $177.4 million for the full year 2016, an increase of $2.6 million or 1.5 percent from 2015. The increase includes a full year of expenses from our 2015 acquisitions, off-set by the elimination of operating expenses related to the First Merchants Insurance Group.
The Corporation’s provision expense totaled $5.7 million during the full year 2016 as net charge-offs totaled $2.1 million resulting in growth in the allowance for loan losses of $3.6 million to cover loan growth during the year. Non-accrual loans now total $30.0 million, down from the 2015 total of $31.4 million. The allowance for loan losses increased $4 million and now totals $66 million. The allowance is 1.28 percent of total loans and 1.47 percent of non-purchased loans.
As of December 31, 2016, the Corporation’s total risk-based capital ratio equaled 14.21 percent, common equity tier 1 capital ratio equaled 11.10 percent and the tangible common equity ratio totaled 9.24 percent.
The previous reference to our expansion in Columbus, Ohio relates to our proposed merger with The Arlington Bank which was announced in an 8-K filed yesterday, January 25, 2017.
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 26, 2017.
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 26, 2017. 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 10098245.
In order to view the web cast and presentation slides, please go to http://services.choruscall.com/links/frme170126.html during the time of the call. A replay of the web cast will be available until January 26, 2018.
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, which also operates as Lafayette Bank & Trust, and First Merchants Private Wealth Advisors which operates 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, | ||||||||
2016 | 2015 | ||||||||
ASSETS | |||||||||
Cash and cash equivalents | $ | 127,927 | $ | 102,170 | |||||
Interest-bearing time deposits | 24,459 | 32,315 | |||||||
Investment securities | 1,304,505 | 1,276,999 | |||||||
Loans held for sale | 2,929 | 9,894 | |||||||
Loans | 5,139,645 | 4,693,822 | |||||||
Less: Allowance for loan losses | (66,037 | ) | (62,453 | ) | |||||
Net loans | 5,073,608 | 4,631,369 | |||||||
Premises and equipment | 94,432 | 97,648 | |||||||
Federal Reserve and Federal Home Loan Bank stock | 17,964 | 37,633 | |||||||
Interest receivable | 26,194 | 24,415 | |||||||
Core deposit intangibles and goodwill | 258,866 | 259,764 | |||||||
Cash surrender value of life insurance | 201,671 | 200,539 | |||||||
Other real estate owned | 8,966 | 17,257 | |||||||
Tax asset, deferred and receivable | 39,384 | 46,977 | |||||||
Other assets | 30,706 | 24,023 | |||||||
TOTAL ASSETS | $ | 7,211,611 | $ | 6,761,003 | |||||
LIABILITIES | |||||||||
Deposits: | |||||||||
Noninterest-bearing | $ | 1,348,267 | $ | 1,266,027 | |||||
Interest-bearing | 4,208,231 | 4,023,620 | |||||||
Total Deposits | 5,556,498 | 5,289,647 | |||||||
Borrowings: | |||||||||
Federal funds purchased | 120,349 | 49,721 | |||||||
Securities sold under repurchase agreements | 146,480 | 155,325 | |||||||
Federal Home Loan Bank advances | 298,923 | 235,652 | |||||||
Subordinated debentures and term loans | 128,445 | 127,846 | |||||||
Total Borrowings | 694,197 | 568,544 | |||||||
Interest payable | 3,110 | 3,092 | |||||||
Other liabilities | 56,149 | 49,211 | |||||||
Total Liabilities | 6,309,954 | 5,910,494 | |||||||
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 - 40,912,697 and 40,664,259 shares | 5,114 | 5,083 | |||||||
Additional paid-in capital | 509,018 | 504,530 | |||||||
Retained earnings | 400,981 | 342,133 | |||||||
Accumulated other comprehensive loss | (13,581 | ) | (1,362 | ) | |||||
Total Stockholders' Equity | 901,657 | 850,509 | |||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 7,211,611 | $ | 6,761,003 |
CONSOLIDATED STATEMENTS OF INCOME | Three Months Ended | Twelve Months Ended | |||||||||||||
(Dollars In Thousands, Except Per Share Amounts) | December 31, | December 31, | |||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
INTEREST INCOME | |||||||||||||||
Loans receivable: | |||||||||||||||
Taxable | $ | 53,895 | $ | 45,897 | $ | 210,302 | $ | 180,805 | |||||||
Tax-exempt | 2,096 | 1,285 | 6,525 | 3,459 | |||||||||||
Investment securities: | |||||||||||||||
Taxable | 3,893 | 4,363 | 16,415 | 17,885 | |||||||||||
Tax-exempt | 4,862 | 4,444 | 18,622 | 16,922 | |||||||||||
Deposits with financial institutions | 67 | 67 | 350 | 160 | |||||||||||
Federal Reserve and Federal Home Loan Bank stock | 192 | 458 | 1,098 | 1,967 | |||||||||||
Total Interest Income | 65,005 | 56,514 | 253,312 | 221,198 | |||||||||||
INTEREST EXPENSE | |||||||||||||||
Deposits | 3,886 | 3,938 | 15,914 | 14,855 | |||||||||||
Federal funds purchased | 40 | 5 | 102 | 74 | |||||||||||
Securities sold under repurchase agreements | 91 | 104 | 374 | 368 | |||||||||||
Federal Home Loan Bank advances | 797 | 728 | 3,264 | 2,836 | |||||||||||
Subordinated debentures and term loans | 1,817 | 1,665 | 7,185 | 6,661 | |||||||||||
Total Interest Expense | 6,631 | 6,440 | 26,839 | 24,794 | |||||||||||
NET INTEREST INCOME | 58,374 | 50,074 | 226,473 | 196,404 | |||||||||||
Provision for loan losses | 2,417 | 5,657 | 417 | ||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 55,957 | 50,074 | 220,816 | 195,987 | |||||||||||
OTHER INCOME | |||||||||||||||
Service charges on deposit accounts | 4,534 | 4,118 | 17,762 | 16,201 | |||||||||||
Fiduciary activities | 2,500 | 2,138 | 9,818 | 9,196 | |||||||||||
Other customer fees | 4,784 | 4,534 | 19,315 | 16,959 | |||||||||||
Commission income | 4,147 | ||||||||||||||
Earnings on cash surrender value of life insurance | 886 | 822 | 4,273 | 2,919 | |||||||||||
Net gains and fees on sales of loans | 1,886 | 1,308 | 7,052 | 6,483 | |||||||||||
Net realized gains on sales of available for sale securities | 847 | 623 | 3,389 | 2,670 | |||||||||||
Gain on sale of insurance subsidiary | 8,265 | ||||||||||||||
Other income | 683 | 488 | 3,594 | 3,028 | |||||||||||
Total Other Income | 16,120 | 14,031 | 65,203 | 69,868 | |||||||||||
OTHER EXPENSES | |||||||||||||||
Salaries and employee benefits | 22,994 | 25,796 | 102,552 | 101,908 | |||||||||||
Net occupancy | 4,568 | 3,649 | 16,997 | 14,668 | |||||||||||
Equipment | 3,069 | 2,683 | 12,497 | 10,787 | |||||||||||
Marketing | 790 | 915 | 3,008 | 3,493 | |||||||||||
Outside data processing fees | 2,672 | 1,632 | 9,148 | 7,109 | |||||||||||
Printing and office supplies | 301 | 343 | 1,348 | 1,353 | |||||||||||
Core deposit amortization | 977 | 692 | 3,910 | 2,835 | |||||||||||
FDIC assessments | 550 | 939 | 3,036 | 3,655 | |||||||||||
Other real estate owned and foreclosure expenses | 574 | 1,040 | 2,877 | 3,956 | |||||||||||
Professional and other outside services | 1,634 | 3,544 | 6,516 | 9,855 | |||||||||||
Other expenses | 3,805 | 4,277 | 15,470 | 15,187 | |||||||||||
Total Other Expenses | 41,934 | 45,510 | 177,359 | 174,806 | |||||||||||
INCOME BEFORE INCOME TAX | 30,143 | 18,595 | 108,660 | 91,049 | |||||||||||
Income tax expense | 7,850 | 4,418 | 27,609 | 25,665 | |||||||||||
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 22,293 | $ | 14,177 | $ | 81,051 | $ | 65,384 | |||||||
Per Share Data: | |||||||||||||||
Basic Net Income Available to Common Stockholders | $ | 0.55 | $ | 0.37 | $ | 1.99 | $ | 1.73 | |||||||
Diluted Net Income Available to Common Stockholders | $ | 0.55 | $ | 0.37 | $ | 1.98 | $ | 1.72 | |||||||
Cash Dividends Paid | $ | 0.15 | $ | 0.11 | $ | 0.54 | $ | 0.41 | |||||||
Average Diluted Shares Outstanding (in thousands) | 41,124 | 38,191 | 41,013 | 38,088 |
FINANCIAL HIGHLIGHTS | |||||||||||||||||
(Dollars in thousands) | Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | ||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||
NET CHARGE OFF'S | $ | (164 | ) | $ | 408 | $ | 2,073 | $ | 1,928 | ||||||||
AVERAGE BALANCES: | |||||||||||||||||
Total Assets | $ | 7,086,456 | $ | 6,301,222 | $ | 6,899,265 | $ | 6,085,687 | |||||||||
Total Loans | 5,008,066 | 4,351,621 | 4,814,005 | 4,179,839 | |||||||||||||
Total Earning Assets | 6,367,973 | 5,678,050 | 6,180,050 | 5,464,829 | |||||||||||||
Total Deposits | 5,585,468 | 4,994,624 | 5,438,217 | 4,806,503 | |||||||||||||
Total Stockholders' Equity | 903,610 | 774,560 | 884,664 | 753,724 | |||||||||||||
FINANCIAL RATIOS: | |||||||||||||||||
Return on Average Assets | 1.26 | % | 0.90 | % | 1.17 | % | 1.07 | % | |||||||||
Return on Average Stockholders' Equity | 9.87 | 7.32 | 9.16 | 8.67 | |||||||||||||
Return on Average Common Stockholders' Equity | 9.87 | 7.32 | 9.16 | 8.68 | |||||||||||||
Average Earning Assets to Average Assets | 89.86 | 90.11 | 89.58 | 89.80 | |||||||||||||
Allowance for Loan Losses as % of Total Loans | 1.28 | 1.33 | 1.28 | 1.33 | |||||||||||||
Net Charge Off's as % of Average Loans (Annualized) | (0.01 | ) | 0.04 | 0.04 | 0.05 | ||||||||||||
Average Stockholders' Equity to Average Assets | 12.75 | 12.29 | 12.82 | 12.39 | |||||||||||||
Tax Equivalent Yield on Earning Assets | 4.32 | 4.20 | 4.32 | 4.25 | |||||||||||||
Cost of Supporting Liabilities | 0.42 | 0.45 | 0.43 | 0.45 | |||||||||||||
Net Interest Margin (FTE) on Earning Assets | 3.90 | 3.75 | 3.89 | 3.80 | |||||||||||||
Efficiency Ratio | 52.18 | 65.77 | 56.51 | 61.19 | |||||||||||||
Tangible Common Book Value Per Share | $ | 15.85 | $ | 14.68 | $ | 15.85 | $ | 14.68 |
NON-PERFORMING ASSETS | ||||||||||||||||||||
(Dollars In Thousands) | December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | ||||||||||||||||
Non-Accrual Loans | $ | 29,998 | $ | 34,105 | $ | 33,565 | $ | 36,719 | $ | 31,389 | ||||||||||
Renegotiated Loans | 4,747 | 3,940 | 4,299 | 1,015 | 1,923 | |||||||||||||||
Non-Performing Loans (NPL) | 34,745 | 38,045 | 37,864 | 37,734 | 33,312 | |||||||||||||||
Other Real Estate Owned | 8,966 | 10,242 | 13,219 | 15,626 | 17,257 | |||||||||||||||
Non-Performing Assets (NPA) | 43,711 | 48,287 | 51,083 | 53,360 | 50,569 | |||||||||||||||
90+ Days Delinquent | 112 | 1,625 | 362 | 963 | 907 | |||||||||||||||
NPAs & 90 Day Delinquent | $ | 43,823 | $ | 49,912 | $ | 51,445 | $ | 54,323 | $ | 51,476 | ||||||||||
Loan Loss Reserve | $ | 66,037 | $ | 63,456 | $ | 62,186 | $ | 62,086 | $ | 62,453 | ||||||||||
Quarterly Net Charge-off's | (164 | ) | 630 | 690 | 917 | 408 | ||||||||||||||
NPAs / Actual Assets % | 0.61 | % | 0.69 | % | 0.74 | % | 0.78 | % | 0.75 | % | ||||||||||
NPAs & 90 Day / Actual Assets % | 0.61 | % | 0.71 | % | 0.74 | % | 0.80 | % | 0.76 | % | ||||||||||
NPAs / Actual Loans and OREO % | 0.85 | % | 0.97 | % | 1.06 | % | 1.13 | % | 1.07 | % | ||||||||||
Loan Loss Reserves / Actual Loans (%) | 1.28 | % | 1.28 | % | 1.29 | % | 1.32 | % | 1.33 | % | ||||||||||
Net Charge Off's as % of Average Loans (Annualized) | (0.01 | )% | 0.05 | % | 0.06 | % | 0.08 | % | 0.04 | % |
CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||||
(Dollars In Thousands) | December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 127,927 | $ | 99,602 | $ | 120,471 | $ | 85,738 | $ | 102,170 | ||||||||||
Interest-bearing time deposits | 24,459 | 33,803 | 62,533 | 77,453 | 32,315 | |||||||||||||||
Investment securities | 1,304,505 | 1,300,428 | 1,297,801 | 1,270,777 | 1,276,999 | |||||||||||||||
Loans held for sale | 2,929 | 1,482 | 18,854 | 3,628 | 9,894 | |||||||||||||||
Loans | 5,139,645 | 4,973,844 | 4,791,429 | 4,709,907 | 4,693,822 | |||||||||||||||
Less: Allowance for loan losses | (66,037 | ) | (63,456 | ) | (62,186 | ) | (62,086 | ) | (62,453 | ) | ||||||||||
Net loans | 5,073,608 | 4,910,388 | 4,729,243 | 4,647,821 | 4,631,369 | |||||||||||||||
Premises and equipment | 94,432 | 95,540 | 95,170 | 96,494 | 97,648 | |||||||||||||||
Federal Reserve and Federal Home Loan Bank stock | 17,964 | 18,044 | 18,096 | 37,553 | 37,633 | |||||||||||||||
Interest receivable | 26,194 | 23,652 | 23,351 | 22,836 | 24,415 | |||||||||||||||
Core deposit intangibles and goodwill | 258,866 | 259,844 | 260,821 | 261,799 | 259,764 | |||||||||||||||
Cash surrender value of life insurance | 201,671 | 201,856 | 201,417 | 200,549 | 200,539 | |||||||||||||||
Other real estate owned | 8,966 | 10,242 | 13,219 | 15,626 | 17,257 | |||||||||||||||
Tax asset, deferred and receivable | 39,384 | 31,779 | 32,547 | 47,982 | 46,977 | |||||||||||||||
Other assets | 30,706 | 35,692 | 32,895 | 30,283 | 24,023 | |||||||||||||||
TOTAL ASSETS | $ | 7,211,611 | $ | 7,022,352 | $ | 6,906,418 | $ | 6,798,539 | $ | 6,761,003 | ||||||||||
LIABILITIES | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest-bearing | $ | 1,348,267 | $ | 1,307,886 | $ | 1,253,747 | $ | 1,282,462 | $ | 1,266,027 | ||||||||||
Interest-bearing | 4,208,231 | 4,136,354 | 4,153,807 | 4,028,608 | 4,023,620 | |||||||||||||||
Total Deposits | 5,556,498 | 5,444,240 | 5,407,554 | 5,311,070 | 5,289,647 | |||||||||||||||
Borrowings: | ||||||||||||||||||||
Federal funds purchased | 120,349 | 58,358 | 20,000 | 602 | 49,721 | |||||||||||||||
Securities sold under repurchase agreements | 146,480 | 138,671 | 140,777 | 150,134 | 155,325 | |||||||||||||||
Federal Home Loan Bank advances | 298,923 | 297,022 | 268,579 | 263,588 | 235,652 | |||||||||||||||
Subordinated debentures and term loans | 128,445 | 128,288 | 127,678 | 127,523 | 127,846 | |||||||||||||||
Total Borrowings | 694,197 | 622,339 | 557,034 | 541,847 | 568,544 | |||||||||||||||
Interest payable | 3,110 | 3,733 | 3,051 | 3,910 | 3,092 | |||||||||||||||
Other liabilities | 56,149 | 51,175 | 51,229 | 74,449 | 49,211 | |||||||||||||||
Total Liabilities | 6,309,954 | 6,121,487 | 6,018,868 | 5,931,276 | 5,910,494 | |||||||||||||||
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 | 5,114 | 5,100 | 5,097 | 5,094 | 5,083 | |||||||||||||||
Additional paid-in capital | 509,018 | 506,848 | 505,725 | 504,661 | 504,530 | |||||||||||||||
Retained earnings | 400,981 | 384,868 | 369,568 | 355,317 | 342,133 | |||||||||||||||
Accumulated other comprehensive income (loss) | (13,581 | ) | 3,924 | 7,035 | 2,066 | (1,362 | ) | |||||||||||||
Total Stockholders' Equity | 901,657 | 900,865 | 887,550 | 867,263 | 850,509 | |||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 7,211,611 | $ | 7,022,352 | $ | 6,906,418 | $ | 6,798,539 | $ | 6,761,003 |
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||
(Dollars In Thousands, Except Per Share Amounts) | December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | ||||||||||||||||
INTEREST INCOME | ||||||||||||||||||||
Loans receivable: | ||||||||||||||||||||
Taxable | $ | 53,895 | $ | 53,819 | $ | 52,099 | $ | 50,489 | $ | 45,897 | ||||||||||
Tax-exempt | 2,096 | 1,649 | 1,465 | 1,315 | 1,285 | |||||||||||||||
Investment securities: | ||||||||||||||||||||
Taxable | 3,893 | 3,992 | 4,202 | 4,328 | 4,363 | |||||||||||||||
Tax-exempt | 4,862 | 4,668 | 4,583 | 4,509 | 4,444 | |||||||||||||||
Deposits with financial institutions | 67 | 55 | 122 | 106 | 67 | |||||||||||||||
Federal Reserve and Federal Home Loan Bank stock | 192 | 193 | 233 | 480 | 458 | |||||||||||||||
Total Interest Income | 65,005 | 64,376 | 62,704 | 61,227 | 56,514 | |||||||||||||||
INTEREST EXPENSE | ||||||||||||||||||||
Deposits | 3,886 | 3,926 | 4,039 | 4,063 | 3,938 | |||||||||||||||
Federal funds purchased | 40 | 27 | 7 | 28 | 5 | |||||||||||||||
Securities sold under repurchase agreements | 91 | 91 | 92 | 100 | 104 | |||||||||||||||
Federal Home Loan Bank advances | 797 | 853 | 818 | 796 | 728 | |||||||||||||||
Subordinated debentures and term loans | 1,817 | 1,797 | 1,786 | 1,785 | 1,665 | |||||||||||||||
Total Interest Expense | 6,631 | 6,694 | 6,742 | 6,772 | 6,440 | |||||||||||||||
NET INTEREST INCOME | 58,374 | 57,682 | 55,962 | 54,455 | 50,074 | |||||||||||||||
Provision for loan losses | 2,417 | 1,900 | 790 | 550 | ||||||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 55,957 | 55,782 | 55,172 | 53,905 | 50,074 | |||||||||||||||
OTHER INCOME | ||||||||||||||||||||
Service charges on deposit accounts | 4,534 | 4,667 | 4,416 | 4,145 | 4,118 | |||||||||||||||
Fiduciary activities | 2,500 | 2,448 | 2,376 | 2,494 | 2,138 | |||||||||||||||
Other customer fees | 4,784 | 4,777 | 4,695 | 5,059 | 4,534 | |||||||||||||||
Earnings on cash surrender value of life insurance | 886 | 614 | 1,297 | 1,476 | 822 | |||||||||||||||
Net gains and fees on sales of loans | 1,886 | 1,989 | 1,717 | 1,460 | 1,308 | |||||||||||||||
Net realized gains on sales of available for sale securities | 847 | 839 | 706 | 997 | 623 | |||||||||||||||
Other income | 683 | 1,527 | 1,178 | 206 | 488 | |||||||||||||||
Total Other Income | 16,120 | 16,861 | 16,385 | 15,837 | 14,031 | |||||||||||||||
OTHER EXPENSES | ||||||||||||||||||||
Salaries and employee benefits | 22,994 | 26,651 | 25,570 | 27,337 | 25,796 | |||||||||||||||
Net occupancy | 4,568 | 4,348 | 4,059 | 4,022 | 3,649 | |||||||||||||||
Equipment | 3,069 | 2,947 | 3,243 | 3,238 | 2,683 | |||||||||||||||
Marketing | 790 | 630 | 851 | 737 | 915 | |||||||||||||||
Outside data processing fees | 2,672 | 2,382 | 2,025 | 2,069 | 1,632 | |||||||||||||||
Printing and office supplies | 301 | 314 | 369 | 364 | 343 | |||||||||||||||
Core deposit amortization | 977 | 978 | 977 | 978 | 692 | |||||||||||||||
FDIC assessments | 550 | 534 | 1,002 | 950 | 939 | |||||||||||||||
Other real estate owned and foreclosure expenses | 574 | 637 | 915 | 751 | 1,040 | |||||||||||||||
Professional and other outside services | 1,634 | 1,242 | 1,478 | 2,162 | 3,544 | |||||||||||||||
Other expenses | 3,805 | 3,452 | 4,346 | 3,867 | 4,277 | |||||||||||||||
Total Other Expenses | 41,934 | 44,115 | 44,835 | 46,475 | 45,510 | |||||||||||||||
INCOME BEFORE INCOME TAX | 30,143 | 28,528 | 26,722 | 23,267 | 18,595 | |||||||||||||||
Income tax expense | 7,850 | 7,469 | 6,716 | 5,574 | 4,418 | |||||||||||||||
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 22,293 | $ | 21,059 | $ | 20,006 | $ | 17,693 | $ | 14,177 | ||||||||||
Per Share Data: | ||||||||||||||||||||
Basic Net Income Available to Common Stockholders | $ | 0.55 | $ | 0.51 | $ | 0.50 | $ | 0.43 | $ | 0.37 | ||||||||||
Diluted Net Income Available to Common Stockholders | $ | 0.55 | $ | 0.51 | $ | 0.49 | $ | 0.43 | $ | 0.37 | ||||||||||
Cash Dividends Paid | $ | 0.15 | $ | 0.14 | $ | 0.14 | $ | 0.11 | $ | 0.11 | ||||||||||
Average Diluted Shares Outstanding (in thousands) | 41,124 | 41,026 | 40,969 | 40,917 | 38,191 | |||||||||||||||
FINANCIAL RATIOS: | ||||||||||||||||||||
Return on Average Assets | 1.26 | % | 1.22 | % | 1.17 | % | 1.05 | % | 0.90 | % | ||||||||||
Return on Average Stockholders' Equity | 9.87 | 9.39 | 9.13 | 8.21 | 7.32 | |||||||||||||||
Return on Average Common Stockholders' Equity | 9.87 | 9.39 | 9.14 | 8.21 | 7.32 | |||||||||||||||
Average Earning Assets to Average Assets | 89.86 | 89.73 | 89.41 | 89.28 | 90.11 | |||||||||||||||
Allowance for Loan Losses as % of Total Loans | 1.28 | 1.28 | 1.29 | 1.32 | 1.33 | |||||||||||||||
Net Charge Off's as % of Average Loans (Annualized) | (0.01 | ) | 0.05 | 0.06 | 0.08 | 0.04 | ||||||||||||||
Average Stockholders' Equity to Average Assets | 12.75 | 12.99 | 12.78 | 12.78 | 12.29 | |||||||||||||||
Tax Equivalent Yield on Earning Assets | 4.32 | 4.37 | 4.30 | 4.28 | 4.20 | |||||||||||||||
Cost of Supporting Liabilities | 0.42 | 0.43 | 0.44 | 0.45 | 0.45 | |||||||||||||||
Net Interest Margin (FTE) on Earning Assets | 3.90 | 3.94 | 3.86 | 3.83 | 3.75 | |||||||||||||||
Efficiency Ratio | 52.18 | 55.12 | 57.33 | 61.78 | 65.77 | |||||||||||||||
Tangible Common Book Value Per Share | $ | 15.85 | $ | 15.86 | $ | 15.53 | $ | 15.02 | $ | 14.68 |
LOANS | ||||||||||||||||||||
(Dollars In Thousands) | December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | ||||||||||||||||
Commercial and industrial loans | $ | 1,194,646 | $ | 1,146,538 | $ | 1,084,890 | $ | 1,060,559 | $ | 1,057,075 | ||||||||||
Agricultural production financing and other loans to farmers | 79,689 | 93,169 | 95,131 | 92,137 | 97,711 | |||||||||||||||
Real estate loans: | ||||||||||||||||||||
Construction | 418,703 | 368,241 | 352,980 | 391,621 | 366,704 | |||||||||||||||
Commercial and farmland | 1,953,062 | 1,941,739 | 1,869,703 | 1,806,395 | 1,802,921 | |||||||||||||||
Residential | 739,169 | 739,855 | 758,870 | 769,592 | 786,105 | |||||||||||||||
Home Equity | 418,525 | 398,837 | 374,159 | 353,946 | 348,613 | |||||||||||||||
Individuals' loans for household and other personal expenditures | 77,479 | 76,497 | 75,205 | 73,622 | 74,717 | |||||||||||||||
Lease financing receivables, net of unearned income | 311 | 380 | 388 | 461 | 588 | |||||||||||||||
Other commercial loans | 258,061 | 208,588 | 180,103 | 161,574 | 159,388 | |||||||||||||||
Loans | 5,139,645 | 4,973,844 | 4,791,429 | 4,709,907 | 4,693,822 | |||||||||||||||
Allowance for loan losses | (66,037 | ) | (63,456 | ) | (62,186 | ) | (62,086 | ) | (62,453 | ) | ||||||||||
NET LOANS | $ | 5,073,608 | $ | 4,910,388 | $ | 4,729,243 | $ | 4,647,821 | $ | 4,631,369 |
DEPOSITS | |||||||||||||||||||
(Dollars In Thousands) | December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | |||||||||||||||
Demand deposits | $ | 2,866,853 | $ | 2,745,028 | $ | 2,717,500 | $ | 2,590,603 | $ | 2,576,283 | |||||||||
Savings deposits | 1,560,752 | 1,545,372 | 1,551,210 | 1,549,304 | 1,518,722 | ||||||||||||||
Certificates and other time deposits of $100,000 or more | 276,274 | 296,838 | 301,695 | 304,559 | 323,698 | ||||||||||||||
Other certificates and time deposits | 471,247 | 498,203 | 517,720 | 536,120 | 556,476 | ||||||||||||||
Brokered deposits | 381,372 | 358,799 | 319,429 | 330,484 | 314,468 | ||||||||||||||
TOTAL DEPOSITS | $ | 5,556,498 | $ | 5,444,240 | $ | 5,407,554 | $ | 5,311,070 | $ | 5,289,647 |
NET INTEREST INCOME | |||||||||||||||||||||||
(Dollars in Thousands) | For the Three Months Ended | ||||||||||||||||||||||
December 31, 2016 | December 31, 2015 | ||||||||||||||||||||||
Interest | Interest | ||||||||||||||||||||||
Average | Income / | Average | Average | Income / | Average | ||||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||
Assets: | |||||||||||||||||||||||
Interest-bearing time deposits | $ | 49,835 | $ | 66 | 0.53 | % | $ | 94,150 | $ | 67 | 0.28 | % | |||||||||||
Federal Reserve and Federal Home Loan Bank stock | 18,041 | 193 | 4.28 | 34,909 | 458 | 5.25 | |||||||||||||||||
Investment Securities: (1) | |||||||||||||||||||||||
Taxable | 710,902 | 3,893 | 2.19 | 687,265 | 4,363 | 2.54 | |||||||||||||||||
Tax-Exempt (2) | 581,129 | 7,480 | 5.15 | 510,105 | 6,837 | 5.36 | |||||||||||||||||
Total Investment Securities | 1,292,031 | 11,373 | 3.52 | 1,197,370 | 11,200 | 3.74 | |||||||||||||||||
Loans held for sale | 1,611 | 81 | 20.11 | 1,829 | 93 | 20.34 | |||||||||||||||||
Loans: (3) | |||||||||||||||||||||||
Commercial | 3,655,414 | 41,830 | 4.58 | 3,263,959 | 36,284 | 4.45 | |||||||||||||||||
Real Estate Mortgage | 557,259 | 6,125 | 4.40 | 465,097 | 4,844 | 4.17 | |||||||||||||||||
Installment | 519,257 | 5,859 | 4.51 | 430,440 | 4,675 | 4.34 | |||||||||||||||||
Tax-Exempt (2) | 274,525 | 3,225 | 4.70 | 190,296 | 1,978 | 4.16 | |||||||||||||||||
Total Loans | 5,008,066 | 57,120 | 4.56 | 4,351,621 | 47,874 | 4.40 | |||||||||||||||||
Total Earning Assets | 6,367,973 | 68,752 | 4.32 | 5,678,050 | 59,599 | 4.20 | |||||||||||||||||
Net unrealized gain on securities available for sale | 7,221 | 9,832 | |||||||||||||||||||||
Allowance for loan losses | (63,999 | ) | (63,077 | ) | |||||||||||||||||||
Cash and cash equivalents | 113,414 | 102,144 | |||||||||||||||||||||
Premises and equipment | 95,245 | 83,800 | |||||||||||||||||||||
Other assets | 566,602 | 490,473 | |||||||||||||||||||||
Total Assets | $ | 7,086,456 | $ | 6,301,222 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||
Interest-bearing NOW deposits | $ | 1,524,324 | $ | 730 | 0.19 | % | $ | 1,205,874 | $ | 481 | 0.16 | % | |||||||||||
Money market deposits | 795,045 | 328 | 0.17 | 844,629 | 463 | 0.22 | |||||||||||||||||
Savings deposits | 766,232 | 164 | 0.09 | 645,057 | 191 | 0.12 | |||||||||||||||||
Certificates and other time deposits | 1,132,962 | 2,664 | 0.94 | 1,089,465 | 2,803 | 1.03 | |||||||||||||||||
Total Interest-bearing Deposits | 4,218,563 | 3,886 | 0.37 | 3,785,025 | 3,938 | 0.42 | |||||||||||||||||
Borrowings | 531,059 | 2,745 | 2.07 | 488,997 | 2,502 | 2.05 | |||||||||||||||||
Total Interest-bearing Liabilities | 4,749,622 | 6,631 | 0.56 | 4,274,022 | 6,440 | 0.60 | |||||||||||||||||
Noninterest-bearing deposits | 1,366,905 | 1,209,599 | |||||||||||||||||||||
Other liabilities | 66,319 | 43,041 | |||||||||||||||||||||
Total Liabilities | 6,182,846 | 5,526,662 | |||||||||||||||||||||
Stockholders' Equity | 903,610 | 774,560 | |||||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 7,086,456 | 6,631 | 0.42 | $ | 6,301,222 | 6,440 | 0.45 | |||||||||||||||
Net Interest Income | $ | 62,121 | $ | 53,159 | |||||||||||||||||||
Net Interest Margin | 3.90 | % | 3.75 | % |
(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 2016 and 2015. These totals equal $3,747 and $3,085 for the three months ended December 31, 2016 and 2015, respectively. |
(3) Non accruing loans have been included in the average balances. |
NET INTEREST INCOME | |||||||||||||||||||||||
(Dollars in Thousands) | For the Years Ended | ||||||||||||||||||||||
December 31, 2016 | December 31, 2015 | ||||||||||||||||||||||
Interest | Interest | ||||||||||||||||||||||
Average | Income / | Average | Average | Income / | Average | ||||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||
Assets: | |||||||||||||||||||||||
Interest-bearing time deposits | $ | 69,753 | $ | 350 | 0.50 | % | $ | 61,373 | $ | 160 | 0.26 | % | |||||||||||
Federal Reserve and Federal Home Loan Bank stock | 24,268 | 1,098 | 4.52 | 37,495 | 1,967 | 5.25 | |||||||||||||||||
Investment Securities: (1) | |||||||||||||||||||||||
Taxable | 721,689 | 16,415 | 2.27 | 703,019 | 17,885 | 2.54 | |||||||||||||||||
Tax-Exempt (2) | 550,335 | 28,649 | 5.21 | 483,103 | 26,034 | 5.39 | |||||||||||||||||
Total Investment Securities | 1,272,024 | 45,064 | 3.54 | 1,186,122 | 43,919 | 3.70 | |||||||||||||||||
Loans held for sale | 4,050 | 372 | 9.19 | 3,725 | 475 | 12.75 | |||||||||||||||||
Loans: (3) | |||||||||||||||||||||||
Commercial | 3,541,098 | 162,848 | 4.60 | 3,187,239 | 142,696 | 4.48 | |||||||||||||||||
Real Estate Mortgage | 566,050 | 25,156 | 4.44 | 457,013 | 19,457 | 4.26 | |||||||||||||||||
Installment | 485,111 | 21,926 | 4.52 | 406,163 | 18,177 | 4.48 | |||||||||||||||||
Tax-Exempt (2) | 217,696 | 10,039 | 4.61 | 125,699 | 5,322 | 4.23 | |||||||||||||||||
Total Loans | 4,814,005 | 220,341 | 4.58 | 4,179,839 | 186,127 | 4.45 | |||||||||||||||||
Total Earning Assets | 6,180,050 | 266,853 | 4.32 | % | 5,464,829 | 232,173 | 4.25 | % | |||||||||||||||
Net unrealized gain on securities available for sale | 9,969 | 11,800 | |||||||||||||||||||||
Allowance for loan losses | (62,976 | ) | (62,975 | ) | |||||||||||||||||||
Cash and cash equivalents | 105,443 | 98,051 | |||||||||||||||||||||
Premises and equipment | 96,023 | 82,710 | |||||||||||||||||||||
Other assets | 570,756 | 491,272 | |||||||||||||||||||||
Total Assets | $ | 6,899,265 | $ | 6,085,687 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||
Interest-bearing NOW deposits | $ | 1,427,535 | $ | 2,579 | 0.18 | % | $ | 1,109,829 | $ | 1,374 | 0.12 | % | |||||||||||
Money market deposits | 825,681 | 1,705 | 0.21 | 840,084 | 1,768 | 0.21 | |||||||||||||||||
Savings deposits | 731,902 | 618 | 0.08 | 614,675 | 672 | 0.11 | |||||||||||||||||
Certificates and other time deposits | 1,151,700 | 11,012 | 0.96 | 1,121,651 | 11,041 | 0.98 | |||||||||||||||||
Total Interest-bearing Deposits | 4,136,818 | 15,914 | 0.38 | 3,686,239 | 14,855 | 0.40 | |||||||||||||||||
Borrowings | 512,356 | 10,925 | 2.13 | 480,794 | 9,939 | 2.07 | |||||||||||||||||
Total Interest-bearing Liabilities | 4,649,174 | 26,839 | 0.58 | 4,167,033 | 24,794 | 0.60 | |||||||||||||||||
Noninterest-bearing deposits | 1,301,399 | 1,120,264 | |||||||||||||||||||||
Other liabilities | 64,028 | 44,666 | |||||||||||||||||||||
Total Liabilities | 6,014,601 | 5,331,963 | |||||||||||||||||||||
Stockholders' Equity | 884,664 | 753,724 | |||||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 6,899,265 | 26,839 | 0.43 | $ | 6,085,687 | 24,794 | 0.45 | |||||||||||||||
Net Interest Income | $ | 240,014 | $ | 207,379 | |||||||||||||||||||
Net Interest Margin | 3.89 | % | 3.80 | % |
(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 2016 and 2015. These totals equal $13,541 and $10,975 for the years ended December 31, 2016 and 2015, respectively. |
(3) Non accruing loans have been included in the average balances. |
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