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CST: 20/11/2019 15:48:22   

First Merchants Corporation Announces 5.4 Percent Increase in First Quarter 2019 Earnings Per Share

209 Days ago

MUNCIE, Ind., April 25, 2019 (GLOBE NEWSWIRE) -- First Merchants Corporation (NASDAQ - FRME) has reported first quarter 2019 net income of $38.8 million, an increase of 5.8 percent, compared to $36.7 million during the same period in 2018.  Earnings per share for the period totaled $.78 per share, an increase of 5.4 percent, compared to the first quarter of 2018 result of $.74 per share.

Total assets equaled $10.2 billion as of quarter-end and loans totaled $7.3 billion.  The Corporation’s loan portfolio increased by $397 million, or 5.7 percent, during the past twelve months.  Investments increased $319 million, or 20.7 percent, during the same period and now total $1.9 billion.  Total deposits equaled $8.0 billion as of quarter-end and increased by $720 million, or 9.8 percent, while borrowings, totaling $615 million, declined during the period by $161 million, or 20.8 percent.  As a result, the loan-to-deposit ratio now totals 90.7 percent and loan-to-asset ratio totals 71.5 percent.  Additionally, the Corporation’s total risk-based capital ratio equaled 14.71 percent, common equity tier 1 capital ratio equaled 12.12 percent, and the tangible common equity ratio totaled 10.14 percent.

Michael C. Rechin, President and Chief Executive Officer, stated, “We are excited to begin 2019 with a solid quarter of operating results.  Our focus on the marketplace produced strong deposit growth and liquidity for our balance sheet.  The loan pipeline continues to reflect an expanding Midwest economy with healthy asset quality throughout the portfolio.  Our primary financial ratios and related key performance indicators continue to reflect the results of a high performing company.”

Rechin continued, “We now have shareholder, Indiana Department of Financial Institutions and the Federal Deposit Insurance Corporation approvals in hand regarding our merger with Monroe Bank & Trust. We continue to anticipate our holding company’s approval from the Federal Reserve Bank and a legal closing in the current quarter.  Our integration activities and re-branding efforts are planned for the third quarter.”

Net-interest income totaled $84.9 million for the quarter, an increase of $5 million, or 6.3 percent, over the same period in 2018.  Net-interest margin, totaling 3.84 percent, declined by 8 basis points.  Yields on earning assets increased by 32 basis points and totaled 4.89 percent, while the cost of supporting liabilities increased by 40 basis points and totaled 1.05 percent.  Fair value accretion negatively impacted yields as it declined from 15 basis points in first quarter of 2018 to 9 basis points in 2019.

Non-interest income totaled $18.7 million for the quarter, an $848,000 decrease from the first quarter of 2018. Gains from the sale of loans accounted for $526,000 of the decline, as approximately one-half of the quarter’s production was added to the balance sheet versus being sold into the secondary market.  Non-interest expense totaled $56.6 million, up from the 2018 total of $53.7 million.  Of the $2.9 million increase, salary and benefits accounted for $802,000, other real estate and foreclosure expense accounted for $763,000 and outside data processing accounted for $720,000.

The Corporation’s provision expense totaled $1.2 million due to loan growth, while net charge offs totaled $850,000.  The allowance for loan losses totaled $80.9 million as of March 31, 2019, up from $76.4 million as of March 31, 2018.  Non-accrual loans totaled $27.9 million as of quarter-end and the allowance is 1.11 percent of total loans and 1.24 percent of non-purchased loans.

CONFERENCE CALL

First Merchants Corporation will conduct a first quarter earnings conference call and web cast at 2:30 p.m. (ET) on Thursday, April 25, 2019.

To participate, dial (Toll Free) 877-507-0578 and reference First Merchants Corporation's first quarter earnings release. International callers please call +1 412-317-1073.  A replay of the call will be available until May 25, 2019. 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 10127190.

In order to view the web cast and presentation slides, please go to http://services.choruscall.com/links/frme190425.html during the time of the call.  A replay of the web cast will be available until April 25, 2020.

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) March 31,
  2019   2018
ASSETS      
Cash and cash equivalents $ 115,878     $ 128,828  
Interest-bearing time deposits 70,672     24,233  
Investment securities 1,862,659     1,543,820  
Loans held for sale 3,330     4,469  
Loans 7,299,320     6,901,696  
Less: Allowance for loan losses (80,902 )   (76,420 )
Net loans 7,218,418     6,825,276  
Premises and equipment 91,863     94,741  
Federal Home Loan Bank stock 24,588     24,588  
Interest receivable 40,931     35,223  
Goodwill and other intangibles 468,256     474,777  
Cash surrender value of life insurance 225,928     221,949  
Other real estate owned 1,877     9,698  
Tax asset, deferred and receivable 16,094     24,177  
Other assets 70,431     61,017  
TOTAL ASSETS $ 10,210,925     $ 9,472,796  
LIABILITIES      
Deposits:      
Noninterest-bearing $ 1,381,183     $ 1,698,958  
Interest-bearing 6,666,615     5,628,677  
Total Deposits 8,047,798     7,327,635  
Borrowings:      
Federal funds purchased 20,000     50,000  
Securities sold under repurchase agreements 111,783     138,910  
Federal Home Loan Bank advances 345,013     449,419  
Subordinated debentures and term loans 138,519     138,297  
Total Borrowings 615,315     776,626  
Interest payable 7,313     5,376  
Other liabilities 84,651     50,086  
Total Liabilities 8,755,077     8,159,723  
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 - 49,428,468 and 49,243,096 shares 6,179     6,155  
Additional paid-in capital 839,919     834,894  
Retained earnings 611,220     493,624  
Accumulated other comprehensive loss (1,595 )   (21,725 )
Total Stockholders' Equity 1,455,848     1,313,073  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 10,210,925     $ 9,472,796  
               


CONSOLIDATED STATEMENTS OF INCOME Three Months Ended
(Dollars In Thousands, Except Per Share Amounts) March 31,
  2019   2018
INTEREST INCOME      
Loans receivable:      
Taxable $ 90,481     $ 78,267  
Tax-exempt 4,153     3,596  
Investment securities:      
Taxable 6,095     5,096  
Tax-exempt 6,871     6,126  
Deposits with financial institutions 875     131  
Federal Home Loan Bank stock 338     404  
Total Interest Income 108,813     93,620  
INTEREST EXPENSE      
Deposits 19,594     9,002  
Federal funds purchased 93     380  
Securities sold under repurchase agreements 330     173  
Federal Home Loan Bank advances 1,814     2,159  
Subordinated debentures and term loans 2,116     1,990  
Total Interest Expense 23,947     13,704  
NET INTEREST INCOME 84,866     79,916  
Provision for loan losses 1,200     2,500  
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 83,666     77,416  
OTHER INCOME      
Service charges on deposit accounts 5,095     4,777  
Fiduciary and wealth management fees 3,818     3,796  
Card payment fees 4,826     4,594  
Net gains and fees on sales of loans 1,295     1,821  
Derivative hedge fees 781     842  
Other customer fees 439     442  
Earnings on cash surrender value of life insurance 989     1,176  
Net realized gains on sales of available for sale securities 1,140     1,609  
Other income 330     504  
Total Other Income 18,713     19,561  
OTHER EXPENSES      
Salaries and employee benefits 33,028     32,226  
Net occupancy 5,027     4,670  
Equipment 3,642     3,668  
Marketing 1,074     884  
Outside data processing fees 3,684     2,964  
Printing and office supplies 315     334  
Intangible asset amortization 1,528     1,726  
FDIC assessments 707     719  
Other real estate owned and foreclosure expenses 1,165     402  
Professional and other outside services 1,884     1,541  
Other expenses 4,567     4,553  
Total Other Expenses 56,621     53,687  
INCOME BEFORE INCOME TAX 45,758     43,290  
Income tax expense 6,941     6,611  
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 38,817     $ 36,679  
       
Per Share Data:      
Basic Net Income Available to Common Stockholders $ 0.79     $ 0.75  
Diluted Net Income Available to Common Stockholders $ 0.78     $ 0.74  
Cash Dividends Paid $ 0.22     $ 0.18  
Average Diluted Shares Outstanding (in thousands) 49,541     49,428  
           


FINANCIAL HIGHLIGHTS      
(Dollars in thousands) Three Months Ended
  March 31,
  2019   2018
NET CHARGE-OFFS $ 850     $ 1,112  
       
AVERAGE BALANCES:      
Total Assets $ 10,080,142     $ 9,372,736  
Total Loans 7,230,119     6,811,087  
Total Earning Assets 9,132,129     8,415,177  
Total Deposits 7,936,656     7,153,164  
Total Stockholders' Equity 1,429,739     1,308,804  
       
FINANCIAL RATIOS:      
Return on Average Assets 1.54 %   1.57 %
Return on Average Stockholders' Equity 10.86     11.21  
Return on Average Common Stockholders' Equity 10.86     11.21  
Average Earning Assets to Average Assets 90.60     89.78  
Allowance for Loan Losses as % of Total Loans 1.11     1.11  
Net Charge-offs as % of Average Loans (Annualized) 0.05     0.07  
Average Stockholders' Equity to Average Assets 14.18     13.96  
Tax Equivalent Yield on Average Earning Assets 4.89     4.57  
Interest Expense/Average Earning Assets 1.05     0.65  
Net Interest Margin (FTE) on Average Earning Assets 3.84     3.92  
Efficiency Ratio 51.18     51.33  
Tangible Common Book Value Per Share $ 20.07     $ 17.14  
               


NON-PERFORMING ASSETS                  
(Dollars In Thousands) March 31,   December 31,   September 30,   June 30,   March 31,
  2019   2018   2018   2018   2018
Non-Accrual Loans $ 27,949     $ 26,148     $ 20,421     $ 20,143     $ 27,497  
Renegotiated Loans 709     1,103     968     544     579  
Non-Performing Loans (NPL) 28,658     27,251     21,389     20,687     28,076  
Other Real Estate Owned 1,877     2,179     8,859     9,071     9,698  
Non-Performing Assets (NPA) 30,535     29,430     30,248     29,758     37,774  
90+ Days Delinquent 134     1,855     50     184     738  
NPAs & 90 Day Delinquent $ 30,669     $ 31,285     $ 30,298     $ 29,942     $ 38,512  
                   
Allowance for Loan Losses $ 80,902     $ 80,552     $ 78,406     $ 77,543     $ 76,420  
Quarterly Net Charge-offs 850     (482 )   537     540     1,112  
NPAs / Actual Assets % 0.30 %   0.30 %   0.31 %   0.31 %   0.40 %
NPAs & 90 Day / Actual Assets % 0.30 %   0.32 %   0.31 %   0.31 %   0.41 %
NPAs / Actual Loans and OREO % 0.42 %   0.41 %   0.43 %   0.42 %   0.55 %
Allowance for Loan Losses / Actual Loans (%) 1.11 %   1.11 %   1.11 %   1.09 %   1.11 %
Net Charge-offs as % of Average Loans (Annualized) 0.05 %   (0.03 )%   0.03 %   0.03 %   0.07 %
                             


CONSOLIDATED BALANCE SHEETS                  
(Dollars In Thousands) March 31,   December 31,   September 30,   June 30,   March 31,
  2019   2018   2018   2018   2018
ASSETS                  
Cash and cash equivalents $ 115,878     $ 139,247     $ 142,501     $ 133,893     $ 128,828  
Interest-bearing time deposits 70,672     36,963     66,763     36,599     24,233  
Investment securities 1,862,659     1,632,582     1,625,251     1,619,683     1,543,820  
Loans held for sale 3,330     4,778     3,022     2,046     4,469  
Loans 7,299,320     7,224,467     7,088,071     7,081,059     6,901,696  
Less: Allowance for loan losses (80,902 )   (80,552 )   (78,406 )   (77,543 )   (76,420 )
Net loans 7,218,418     7,143,915     7,009,665     7,003,516     6,825,276  
Premises and equipment 91,863     93,420     93,728     94,397     94,741  
Federal Home Loan Bank stock 24,588     24,588     24,588     24,588     24,588  
Interest receivable 40,931     40,881     38,531     38,530     35,223  
Goodwill and other intangibles 468,256     469,784     471,409     473,059     474,777  
Cash surrender value of life insurance 225,928     224,939     223,865     222,905     221,949  
Other real estate owned 1,877     2,179     8,859     9,071     9,698  
Tax asset, deferred and receivable 16,094     23,668     25,933     24,619     24,177  
Other assets 70,431     47,772     53,167     51,809     61,017  
TOTAL ASSETS $ 10,210,925     $ 9,884,716     $ 9,787,282     $ 9,734,715     $ 9,472,796  
LIABILITIES                  
Deposits:                  
Noninterest-bearing $ 1,381,183     $ 1,447,907     $ 1,464,190     $ 1,571,194     $ 1,698,958  
Interest-bearing 6,666,615     6,306,686     6,168,962     5,932,621     5,628,677  
Total Deposits 8,047,798     7,754,593     7,633,152     7,503,815     7,327,635  
Borrowings:                  
Federal funds purchased 20,000     104,000     90,000     109,000     50,000  
Securities sold under repurchase agreements 111,783     113,512     118,824     122,513     138,910  
Federal Home Loan Bank advances 345,013     314,986     385,458     469,261     449,419  
Subordinated debentures and term loans 138,519     138,463     138,408     138,352     138,297  
Total Borrowings 615,315     670,961     732,690     839,126     776,626  
Interest payable 7,313     5,607     5,920     4,807     5,376  
Other liabilities 84,651     45,295     54,094     46,639     50,086  
Total Liabilities 8,755,077     8,476,456     8,425,856     8,394,387     8,159,723  
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 6,179     6,169     6,163     6,160     6,155  
Additional paid-in capital 839,919     840,052     837,996     836,549     834,894  
Retained earnings 611,220     583,336     552,551     522,362     493,624  
Accumulated other comprehensive loss (1,595 )   (21,422 )   (35,409 )   (24,868 )   (21,725 )
Total Stockholders' Equity 1,455,848     1,408,260     1,361,426     1,340,328     1,313,073  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 10,210,925     $ 9,884,716     $ 9,787,282     $ 9,734,715     $ 9,472,796  
                   


CONSOLIDATED STATEMENTS OF INCOME                  
(Dollars In Thousands, Except Per Share Amounts) March 31,   December 31,   September 30,   June 30,   March 31,
  2019   2018   2018   2018   2018
INTEREST INCOME                  
Loans receivable:                  
Taxable $ 90,481     $ 91,092     $ 88,479     $ 84,663     $ 78,267  
Tax-exempt 4,153     3,873     3,761     3,632     3,596  
Investment securities:                  
Taxable 6,095     5,553     5,514     5,434     5,096  
Tax-exempt 6,871     6,644     6,493     6,246     6,126  
Deposits with financial institutions 875     1,207     270     633     131  
Federal Home Loan Bank stock 338     284     283     263     404  
Total Interest Income 108,813     108,653     104,800     100,871     93,620  
INTEREST EXPENSE                  
Deposits 19,594     16,690     13,685     12,165     9,002  
Federal funds purchased 93     48     229     61     380  
Securities sold under repurchase agreements 330     243     174     172     173  
Federal Home Loan Bank advances 1,814     1,691     2,137     1,845     2,159  
Subordinated debentures and term loans 2,116     2,097     2,089     2,057     1,990  
Total Interest Expense 23,947     20,769     18,314     16,300     13,704  
NET INTEREST INCOME 84,866     87,884     86,486     84,571     79,916  
Provision for loan losses 1,200     1,664     1,400     1,663     2,500  
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 83,666     86,220     85,086     82,908     77,416  
OTHER INCOME                  
Service charges on deposit accounts 5,095     5,516     5,619     5,038     4,777  
Fiduciary and wealth management fees 3,818     3,842     3,673     3,595     3,796  
Card payment fees 4,826     4,393     4,586     4,462     4,594  
Net gains and fees on sales of loans 1,295     1,767     1,841     1,600     1,821  
Derivative hedge fees 781     645     775     231     842  
Other customer fees 439     511     452     455     442  
Earnings on cash surrender value of life insurance 989     1,074     961     1,007     1,176  
Net realized gains on sales of available for sale securities 1,140     253     1,285     1,122     1,609  
Other income 330     1,179     335     681     504  
Total Other Income 18,713     19,180     19,527     18,191     19,561  
OTHER EXPENSES                  
Salaries and employee benefits 33,028     34,350     32,936     32,192     32,226  
Net occupancy 5,027     4,737     4,586     4,348     4,670  
Equipment 3,642     3,627     3,483     3,556     3,668  
Marketing 1,074     1,107     1,216     1,474     884  
Outside data processing fees 3,684     3,367     3,422     3,462     2,964  
Printing and office supplies 315     433     334     324     334  
Intangible asset amortization 1,528     1,625     1,650     1,718     1,726  
FDIC assessments 707     634     856     711     719  
Other real estate owned and foreclosure expenses 1,165     251     455     362     402  
Professional and other outside services 1,884     3,002     1,844     1,789     1,541  
Other expenses 4,567     4,605     4,240     3,568     4,553  
Total Other Expenses 56,621     57,738     55,022     53,504     53,687  
INCOME BEFORE INCOME TAX 45,758     47,662     49,591     47,595     43,290  
Income tax expense 6,941     5,949     8,478     7,961     6,611  
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 38,817     $ 41,713     $ 41,113     $ 39,634     $ 36,679  
                   
Per Share Data:                  
Basic Net Income Available to Common Stockholders $ 0.79     $ 0.85     $ 0.83     $ 0.80     $ 0.75  
Diluted Net Income Available to Common Stockholders $ 0.78     $ 0.85     $ 0.83     $ 0.80     $ 0.74  
Cash Dividends Paid $ 0.22     $ 0.22     $ 0.22     $ 0.22     $ 0.18  
Average Diluted Shares Outstanding (in thousands) 49,541     49,511     49,492     49,451     49,428  
FINANCIAL RATIOS:                  
Return on Average Assets 1.54 %   1.68 %   1.69 %   1.63 %   1.57 %
Return on Average Stockholders' Equity 10.86     12.10     12.10     11.94     11.21  
Return on Average Common Stockholders' Equity 10.86     12.10     12.10     11.95     11.21  
Average Earning Assets to Average Assets 90.60     90.41     90.30     90.14     89.78  
Allowance for Loan Losses as % of Total Loans 1.11     1.11     1.11     1.09     1.11  
Net Charge-offs as % of Average Loans (Annualized) 0.05     (0.03 )   0.03     0.03     0.07  
Average Stockholders' Equity to Average Assets 14.18     13.90     13.93     13.69     13.96  
Tax Equivalent Yield on Average Earning Assets 4.89     4.97     4.88     4.74     4.57  
Interest Expense/Average Earning Assets 1.05     0.93     0.83     0.75     0.65  
Net Interest Margin (FTE) on Average Earning Assets 3.84     4.04     4.05     3.99     3.92  
Efficiency Ratio 51.18     50.97     49.25     49.32     51.33  
Tangible Common Book Value Per Share $ 20.07     $ 19.12     $ 18.16     $ 17.71     $ 17.14  
                                       


LOANS                  
(Dollars In Thousands) March 31,   December 31,   September 30,   June 30,   March 31,
  2019   2018   2018   2018   2018
Commercial and industrial loans $ 1,788,628     $ 1,726,664     $ 1,655,569     $ 1,657,591     $ 1,554,169  
Agricultural production financing and other loans to farmers 80,357     92,404     88,504     89,093     98,315  
Real estate loans:                  
Construction 542,501     545,729     668,608     714,866     590,093  
Commercial and farmland 2,838,798     2,832,102     2,699,629     2,652,782     2,713,994  
Residential 976,668     966,421     965,893     965,720     948,644  
Home equity 536,208     528,157     517,303     518,699     510,545  
Individuals' loans for household and other personal expenditures 108,216     99,788     98,709     92,809     88,235  
Public finance and other commercial loans 427,944     433,202     393,856     389,499     397,701  
Loans 7,299,320     7,224,467     7,088,071     7,081,059     6,901,696  
Allowance for loan losses (80,902 )   (80,552 )   (78,406 )   (77,543 )   (76,420 )
NET LOANS $ 7,218,418     $ 7,143,915     $ 7,009,665     $ 7,003,516     $ 6,825,276  
                                       


DEPOSITS                  
(Dollars In Thousands) March 31,   December 31,   September 30,   June 30,   March 31,
  2019   2018   2018   2018   2018
Demand deposits $ 4,101,156     $ 3,985,178     $ 3,870,816     $ 3,933,233     $ 3,740,395  
Savings deposits 2,338,266     2,282,701     2,212,675     2,099,771     2,109,071  
Certificates and other time deposits of $100,000 or more 670,199     593,592     602,002     555,910     552,643  
Other certificates and time deposits 704,527     646,682     625,341     602,239     584,377  
Brokered deposits 233,650     246,440     322,318     312,662     341,149  
TOTAL DEPOSITS $ 8,047,798     $ 7,754,593     $ 7,633,152     $ 7,503,815     $ 7,327,635  
                                       


CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars in Thousands)
  For the Three Months Ended
  March 31, 2019   March 31, 2018
  Average Balance   Interest
 Income /
Expense
  Average
Rate
  Average Balance   Interest
 Income /
Expense
  Average
Rate
Assets:                      
Interest-bearing time deposits $ 145,935     $ 875     2.40 %   $ 32,776     $ 131     1.60 %
Federal Home Loan Bank stock 24,588     338     5.50     24,385     404     6.63  
Investment Securities: (1)                      
Taxable 902,402     6,095     2.70     810,385     5,096     2.52  
Tax-Exempt (2) 829,085     8,697     4.20     736,544     7,754     4.21  
Total Investment Securities 1,731,487     14,792     3.42     1,546,929     12,850     3.32  
Loans held for sale 9,703     112     4.62     10,636     137     5.15  
Loans: (3)                      
Commercial 5,309,998     72,758     5.48     4,980,450     62,154     4.99  
Real Estate Mortgage 743,736     8,321     4.48     728,725     7,999     4.39  
Installment 665,050     9,290     5.59     623,429     7,977     5.12  
Tax-Exempt (2) 501,632     5,257     4.19     467,847     4,552     3.89  
Total Loans 7,230,119     95,738     5.30     6,811,087     82,819     4.86  
Total Earning Assets 9,132,129     111,743     4.89     8,415,177     96,204     4.57  
Net unrealized gain (loss) on securities available for sale (5,015 )           (6,440 )        
Allowance for loan losses (80,907 )           (75,851 )        
Cash and cash equivalents 117,224             126,484          
Premises and equipment 93,236             95,525          
Other assets 823,475             817,841          
Total Assets $ 10,080,142             $ 9,372,736          
Liabilities:                      
Interest-bearing deposits:                      
Interest-bearing deposits $ 2,689,797     $ 7,019     1.04 %   $ 1,980,141     $ 2,689     0.54 %
Money market deposits 1,139,062     2,782     0.98     1,089,694     1,275     0.47  
Savings deposits 1,150,725     2,267     0.79     945,940     381     0.16  
Certificates and other time deposits 1,565,578     7,526     1.92     1,486,093     4,657     1.25  
Total Interest-bearing Deposits 6,545,162     19,594     1.20     5,501,868     9,002     0.65  
Borrowings 635,058     4,353     2.74     848,208     4,702     2.22  
Total Interest-bearing Liabilities 7,180,220     23,947     1.33     6,350,076     13,704     0.86  
Noninterest-bearing deposits 1,391,494             1,651,296          
Other liabilities 78,689             62,560          
Total Liabilities 8,650,403             8,063,932          
Stockholders' Equity 1,429,739             1,308,804          
Total Liabilities and Stockholders' Equity $ 10,080,142     23,947         $ 9,372,736     13,704      
Net Interest Income (FTE)     $ 87,796             $ 82,500      
Net Interest Spread (FTE) (4)         3.56 %           3.71 %
                       
Net Interest Margin (FTE):                      
Interest Income (FTE) / Average Earning Assets         4.89 %           4.57 %
Interest Expense / Average Earning Assets         1.05 %           0.65 %
Net Interest Margin (FTE) (5)         3.84 %           3.92 %
                       
(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 $2,930 and $2,584 for the three months ended March 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

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