First Merchants Corporation Announces 30 Percent Increase in First Quarter 2017 Earnings Per Share

MUNCIE, Ind.--()--First Merchants Corporation (NASDAQ - FRME) reported first quarter 2017 net income of $23.2 million, an increase of 31 percent, compared to $17.7 million during the same period in 2016. Earnings per share for the period totaled $.56 per share, an increase of 30 percent, compared to the first quarter of 2016 result of $.43 per share.

Total assets grew to $7.3 billion as of quarter-end and loans totaled $5.3 billion. The Corporation’s loan portfolio increased by $565 million or 12 percent, during the past twelve months. Total deposits equaled $5.6 billion as of quarter-end and increased by $324 million, or 6 percent, during the same twelve-month period.

Michael C. Rechin, President and Chief Executive Officer, stated, “The first quarter of 2017 is our fourth consecutive quarter without any meaningful merger and acquisition expense, providing a clean review of our high performance results. Our management team is pleased with our execution in driving organic loan and deposit growth, earnings growth and operating leverage. We are also enthusiastic about our pending acquisitions of The Arlington Bank in Columbus, Ohio and iAB Bank in Ft. Wayne, Indiana which are expected to close in the second and third quarters of 2017, respectively. The acquisitions bring additional franchise value in terms of their historical earnings performance, market attractiveness and management leadership.”

Net-interest income totaled $61 million for the quarter, an increase of $6.5 million, or 12 percent. Net-interest margin improved over last year by 15 basis points totaling 3.98 percent, as yields on earning assets totaled 4.42 percent and the cost of supporting liabilities totaled .44 percent. When adjusted for fair value accretion, core net-interest margin also increased over last year by 6 basis points totaling 3.72 percent.

Non-interest income totaled $14.8 million for the quarter, a $1 million decline from the first quarter of 2016. The decline in non-interest income was more than offset by a $3.4 million decrease in non-interest expense as the Corporation continues its focus on efficiency. Total non-interest expense was $43.1 million for the first quarter of 2017 compared to $46.5 million in 2016.

Tax expense for the first quarter of 2017 totaled $7.2 million, or 23.6 percent of pre-tax net income. Due to the required adoption of FASB Accounting Standards Update (ASU) 2016-09, the Corporation’s tax expense was reduced by $772,000. The first quarter ASU 2016-09 impact improved earnings per share by $.02.

The Corporation’s provision expense totaled $2.4 million primarily due to loan growth as net charge-offs totaled just $197,000. The allowance for loan losses totaled $68.2 million as of March 31, 2017, up from $62.1 million as of March 31, 2016. Non-accrual loans totaled $27.9 million as of quarter-end, down from $36.7 million a year ago. The allowance is 1.29 percent of total loans and 1.46 percent of non-purchased loans.

As of March 31, 2017, the Corporation’s total risk-based capital equaled 14.24 percent, common equity tier 1 risk-based capital equaled 11.16 percent, and tangible common equity ratio totaled 9.5 percent.

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 27, 2017.

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 27, 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 10104098.

In order to view the web cast and presentation slides, please go to http://services.choruscall.com/links/frme170427.html during the time of the call. A replay of the web cast will be available until April 27, 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) March 31,
2017 2016
ASSETS
Cash and cash equivalents $ 104,247 $ 85,738
Interest-bearing time deposits 20,439 77,453
Investment securities 1,327,217 1,270,777
Loans held for sale 1,262 3,628
Loans 5,274,909 4,709,907
Less: Allowance for loan losses (68,225 ) (62,086 )
Net loans 5,206,684 4,647,821
Premises and equipment 91,311 96,494
Federal Reserve and Federal Home Loan Bank stock 17,964 37,553
Interest receivable 25,174 22,836
Core deposit intangibles and goodwill 257,963 261,799
Cash surrender value of life insurance 202,574 200,549
Other real estate owned 8,293 15,626
Tax asset, deferred and receivable 32,074 47,982
Other assets 30,991   30,283  
TOTAL ASSETS $ 7,326,193   $ 6,798,539  
LIABILITIES
Deposits:
Noninterest-bearing $ 1,373,778 $ 1,282,462
Interest-bearing 4,261,531   4,028,608  
Total Deposits 5,635,309 5,311,070
Borrowings:
Federal funds purchased 102,000 602
Securities sold under repurchase agreements 139,007 150,134
Federal Home Loan Bank advances 338,919 263,588
Subordinated debentures and term loans 128,862   127,523  
Total Borrowings 708,788 541,847
Interest payable 3,875 3,910
Other liabilities 48,751   74,449  
Total Liabilities 6,396,723 5,931,276
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 - 41,047,543 and 40,749,340 shares 5,131 5,094
Additional paid-in capital 509,953 504,661
Retained earnings 417,983 355,317
Accumulated other comprehensive loss (3,722 ) 2,066  
Total Stockholders' Equity 929,470   867,263  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 7,326,193   $ 6,798,539  
 
 
CONSOLIDATED STATEMENTS OF INCOME Three Months Ended
(Dollars In Thousands, Except Per Share Amounts) March 31,
2017   2016
INTEREST INCOME
Loans receivable:
Taxable $ 56,357 $ 50,489
Tax-exempt 2,333 1,315
Investment securities:
Taxable 4,308 4,328
Tax-exempt 5,003 4,509
Deposits with financial institutions 44 106
Federal Reserve and Federal Home Loan Bank stock 189   480
Total Interest Income 68,234   61,227
INTEREST EXPENSE
Deposits 4,124 4,063
Federal funds purchased 228 28
Securities sold under repurchase agreements 88 100
Federal Home Loan Bank advances 978 796
Subordinated debentures and term loans 1,817   1,785
Total Interest Expense 7,235   6,772
NET INTEREST INCOME 60,999 54,455
Provision for loan losses 2,385   550
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 58,614   53,905
OTHER INCOME
Service charges on deposit accounts 4,174 4,145
Fiduciary activities 2,640 2,494
Other customer fees 4,863 5,059
Earnings on cash surrender value of life insurance 898 1,476
Net gains and fees on sales of loans 1,275 1,460
Net realized gains on sales of available for sale securities 598 997
Other income 398   206
Total Other Income 14,846   15,837
OTHER EXPENSES
Salaries and employee benefits 25,732 27,337
Net occupancy 4,216 4,022
Equipment 2,807 3,238
Marketing 565 737
Outside data processing fees 2,616 2,069
Printing and office supplies 264 364
Core deposit amortization 903 978
FDIC assessments 570 950
Other real estate owned and foreclosure expenses 531 751
Professional and other outside services 1,734 2,162
Other expenses 3,161   3,867
Total Other Expenses 43,099   46,475
INCOME BEFORE INCOME TAX 30,361 23,267
Income tax expense 7,168   5,574
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 23,193   $ 17,693
Per Share Data:
Basic Net Income Available to Common Stockholders $ 0.57 $ 0.43
Diluted Net Income Available to Common Stockholders $ 0.56 $ 0.43
Cash Dividends Paid $ 0.15 $ 0.11
Average Diluted Shares Outstanding (in thousands) 41,221 40,917
 
   
FINANCIAL HIGHLIGHTS
(Dollars in thousands) Three Months Ended
March 31,
2017 2016
NET CHARGE-OFFS $ 197 $ 917
 
AVERAGE BALANCES:
Total Assets $ 7,217,151 $ 6,743,315
Total Loans 5,180,243 4,669,568
Total Earning Assets 6,526,685 6,020,317
Total Deposits 5,590,357 5,297,289
Total Stockholders' Equity 914,062 861,652
 
FINANCIAL RATIOS:
Return on Average Assets 1.29 % 1.05 %
Return on Average Stockholders' Equity 10.15 8.21
Return on Average Common Stockholders' Equity 10.15 8.21
Average Earning Assets to Average Assets 90.43 89.28
Allowance for Loan Losses as % of Total Loans 1.29 1.32
Net Charge-offs as % of Average Loans (Annualized) 0.02 0.08
Average Stockholders' Equity to Average Assets 12.67 12.78
Tax Equivalent Yield on Earning Assets 4.42 4.28
Cost of Supporting Liabilities 0.44 0.45
Net Interest Margin (FTE) on Earning Assets 3.98 3.83
Efficiency Ratio 52.61 61.78
Tangible Common Book Value Per Share $ 16.49 $ 15.02
 
         
NON-PERFORMING ASSETS
(Dollars In Thousands) March 31, December 31, September 30, June 30, March 31,
2017 2016 2016 2016 2016
Non-Accrual Loans $ 27,920 $ 29,998 $ 34,105 $ 33,565 $ 36,719
Renegotiated Loans 876   4,747   3,940   4,299   1,015  
Non-Performing Loans (NPL) 28,796 34,745 38,045 37,864 37,734
Other Real Estate Owned 8,293   8,966   10,242   13,219   15,626  
Non-Performing Assets (NPA) 37,089 43,711 48,287 51,083 53,360
90+ Days Delinquent 123   112   1,625   362   963  
NPAs & 90 Day Delinquent $ 37,212   $ 43,823   $ 49,912   $ 51,445   $ 54,323  
 
Allowance for Loan Losses $ 68,225 $ 66,037 $ 63,456 $ 62,186 $ 62,086
Quarterly Net Charge-offs 197 (164 ) 630 690 917
NPAs / Actual Assets % 0.51 % 0.61 % 0.69 % 0.74 % 0.78 %
NPAs & 90 Day / Actual Assets % 0.51 % 0.61 % 0.71 % 0.74 % 0.80 %
NPAs / Actual Loans and OREO % 0.70 % 0.85 % 0.97 % 1.06 % 1.13 %
Allowance for Loan Losses / Actual Loans (%) 1.29 % 1.28 % 1.28 % 1.29 % 1.32 %
Net Charge-offs as % of Average Loans (Annualized) 0.02 % (0.01 )% 0.05 % 0.06 % 0.08 %
 
         
CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands) March 31, December 31, September 30, June 30, March 31,
2017 2016 2016 2016 2016
ASSETS
Cash and cash equivalents $ 104,247 $ 127,927 $ 99,602 $ 120,471 $ 85,738
Interest-bearing time deposits 20,439 24,459 33,803 62,533 77,453
Investment securities 1,327,217 1,304,505 1,300,428 1,297,801 1,270,777
Loans held for sale 1,262 2,929 1,482 18,854 3,628
Loans 5,274,909 5,139,645 4,973,844 4,791,429 4,709,907
Less: Allowance for loan losses (68,225 ) (66,037 ) (63,456 ) (62,186 ) (62,086 )
Net loans 5,206,684 5,073,608 4,910,388 4,729,243 4,647,821
Premises and equipment 91,311 94,432 95,540 95,170 96,494
Federal Reserve and Federal Home Loan Bank stock 17,964 17,964 18,044 18,096 37,553
Interest receivable 25,174 26,194 23,652 23,351 22,836
Core deposit intangibles and goodwill 257,963 258,866 259,844 260,821 261,799
Cash surrender value of life insurance 202,574 201,671 201,856 201,417 200,549
Other real estate owned 8,293 8,966 10,242 13,219 15,626
Tax asset, deferred and receivable 32,074 39,384 31,779 32,547 47,982
Other assets 30,991   30,706   35,692   32,895   30,283  
TOTAL ASSETS $ 7,326,193   $ 7,211,611   $ 7,022,352   $ 6,906,418   $ 6,798,539  
LIABILITIES
Deposits:
Noninterest-bearing $ 1,373,778 $ 1,348,267 $ 1,307,886 $ 1,253,747 $ 1,282,462
Interest-bearing 4,261,531   4,208,231   4,136,354   4,153,807   4,028,608  
Total Deposits 5,635,309 5,556,498 5,444,240 5,407,554 5,311,070
Borrowings:
Federal funds purchased 102,000 120,349 58,358 20,000 602
Securities sold under repurchase agreements 139,007 146,480 138,671 140,777 150,134
Federal Home Loan Bank advances 338,919 298,923 297,022 268,579 263,588
Subordinated debentures and term loans 128,862   128,445   128,288   127,678   127,523  
Total Borrowings 708,788 694,197 622,339 557,034 541,847
Interest payable 3,875 3,110 3,733 3,051 3,910
Other liabilities 48,751   56,149   51,175   51,229   74,449  
Total Liabilities 6,396,723 6,309,954 6,121,487 6,018,868 5,931,276
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 5,131 5,114 5,100 5,097 5,094
Additional paid-in capital 509,953 509,018 506,848 505,725 504,661
Retained earnings 417,983 400,981 384,868 369,568 355,317
Accumulated other comprehensive income (loss) (3,722 ) (13,581 ) 3,924   7,035   2,066  
Total Stockholders' Equity 929,470   901,657   900,865   887,550   867,263  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 7,326,193   $ 7,211,611   $ 7,022,352   $ 6,906,418   $ 6,798,539  
 
         
CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands, Except Per Share Amounts) March 31, December 31, September 30, June 30, March 31,
2017 2016 2016 2016 2016
INTEREST INCOME
Loans receivable:
Taxable $ 56,357 $ 53,895 $ 53,819 $ 52,099 $ 50,489
Tax-exempt 2,333 2,096 1,649 1,465 1,315
Investment securities:
Taxable 4,308 3,893 3,992 4,202 4,328
Tax-exempt 5,003 4,862 4,668 4,583 4,509
Deposits with financial institutions 44 67 55 122 106
Federal Reserve and Federal Home Loan Bank stock 189   192   193   233   480  
Total Interest Income 68,234   65,005   64,376   62,704   61,227  
INTEREST EXPENSE
Deposits 4,124 3,886 3,926 4,039 4,063
Federal funds purchased 228 40 27 7 28
Securities sold under repurchase agreements 88 91 91 92 100
Federal Home Loan Bank advances 978 797 853 818 796
Subordinated debentures and term loans 1,817   1,817   1,797   1,786   1,785  
Total Interest Expense 7,235   6,631   6,694   6,742   6,772  
NET INTEREST INCOME 60,999 58,374 57,682 55,962 54,455
Provision for loan losses 2,385   2,417   1,900   790   550  
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 58,614   55,957   55,782   55,172   53,905  
OTHER INCOME
Service charges on deposit accounts 4,174 4,534 4,667 4,416 4,145
Fiduciary activities 2,640 2,500 2,448 2,376 2,494
Other customer fees 4,863 4,784 4,777 4,695 5,059
Earnings on cash surrender value of life insurance 898 886 614 1,297 1,476
Net gains and fees on sales of loans 1,275 1,886 1,989 1,717 1,460
Net realized gains on sales of available for sale securities 598 847 839 706 997
Other income 398   683   1,527   1,178   206  
Total Other Income 14,846   16,120   16,861   16,385   15,837  
OTHER EXPENSES
Salaries and employee benefits 25,732 22,994 26,651 25,570 27,337
Net occupancy 4,216 4,568 4,348 4,059 4,022
Equipment 2,807 3,069 2,947 3,243 3,238
Marketing 565 790 630 851 737
Outside data processing fees 2,616 2,672 2,382 2,025 2,069
Printing and office supplies 264 301 314 369 364
Core deposit amortization 903 977 978 977 978
FDIC assessments 570 550 534 1,002 950
Other real estate owned and foreclosure expenses 531 574 637 915 751
Professional and other outside services 1,734 1,634 1,242 1,478 2,162
Other expenses 3,161   3,805   3,452   4,346   3,867  
Total Other Expenses 43,099   41,934   44,115   44,835   46,475  
INCOME BEFORE INCOME TAX 30,361 30,143 28,528 26,722 23,267
Income tax expense 7,168   7,850   7,469   6,716   5,574  
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 23,193   $ 22,293   $ 21,059   $ 20,006   $ 17,693  
 
Per Share Data:
Basic Net Income Available to Common Stockholders $ 0.57 $ 0.55 $ 0.51 $ 0.50 $ 0.43
Diluted Net Income Available to Common Stockholders $ 0.56 $ 0.55 $ 0.51 $ 0.49 $ 0.43
Cash Dividends Paid $ 0.15 $ 0.15 $ 0.14 $ 0.14 $ 0.11
Average Diluted Shares Outstanding (in thousands) 41,221 41,124 41,026 40,969 40,917
FINANCIAL RATIOS:
Return on Average Assets 1.29 % 1.26 % 1.22 % 1.17 % 1.05 %
Return on Average Stockholders' Equity 10.15 9.87 9.39 9.13 8.21
Return on Average Common Stockholders' Equity 10.15 9.87 9.39 9.14 8.21
Average Earning Assets to Average Assets 90.43 89.86 89.73 89.41 89.28
Allowance for Loan Losses as % of Total Loans 1.29 1.28 1.28 1.29 1.32
Net Charge-offs as % of Average Loans (Annualized) 0.02 (0.01 ) 0.05 0.06 0.08
Average Stockholders' Equity to Average Assets 12.67 12.75 12.99 12.78 12.78
Tax Equivalent Yield on Earning Assets 4.42 4.32 4.37 4.30 4.28
Cost of Supporting Liabilities 0.44 0.42 0.43 0.44 0.45
Net Interest Margin (FTE) on Earning Assets 3.98 3.90 3.94 3.86 3.83
Efficiency Ratio 52.61 52.18 55.12 57.33 61.78
Tangible Common Book Value Per Share $ 16.49 $ 15.85 $ 15.86 $ 15.53 $ 15.02
 
       
LOANS
(Dollars In Thousands) March 31, December 31, September 30, June 30, March 31,
2017 2016 2016 2016 2016
Commercial and industrial loans $ 1,258,840 $ 1,194,646 $ 1,146,538 $ 1,084,890 $ 1,060,559
Agricultural production financing and other loans to farmers 77,021 79,689 93,169 95,131 92,137
Real estate loans:
Construction 336,931 418,703 368,241 352,980 391,621
Commercial and farmland 2,118,431 1,953,062 1,941,739 1,869,703 1,806,395
Residential 737,918 739,169 739,855 758,870 769,592
Home equity 423,708 418,525 398,837 374,159 353,946
Individuals' loans for household and other personal expenditures 77,590 77,479 76,497 75,205 73,622
Lease financing receivables, net of unearned income 261 311 380 388 461
Other commercial loans 244,209   258,061   208,588   180,103   161,574  
Loans 5,274,909 5,139,645 4,973,844 4,791,429 4,709,907
Allowance for loan losses (68,225 ) (66,037 ) (63,456 ) (62,186 ) (62,086 )
NET LOANS $ 5,206,684   $ 5,073,608   $ 4,910,388   $ 4,729,243   $ 4,647,821  
 
         
DEPOSITS
(Dollars In Thousands) March 31, December 31, September 30, June 30, March 31,
2017 2016 2016 2016 2016
Demand deposits $ 2,861,384 $ 2,866,853 $ 2,745,028 $ 2,717,500 $ 2,590,603
Savings deposits 1,565,174 1,560,752 1,545,372 1,551,210 1,549,304
Certificates and other time deposits of $100,000 or more 312,327 276,274 296,838 301,695 304,559
Other certificates and time deposits 476,741 471,247 498,203 517,720 536,120
Brokered deposits 419,683   381,372   358,799   319,429   330,484
TOTAL DEPOSITS $ 5,635,309   $ 5,556,498   $ 5,444,240   $ 5,407,554   $ 5,311,070
 
NET INTEREST INCOME            
(Dollars in Thousands) For the Three Months Ended
March 31, 2017 March 31, 2016

Average
Balance

Interest
Income /
Expense

Average
Rate

Average
Balance

Interest
Income /
Expense 		Average
Rate
Assets:
Interest-bearing time deposits $ 30,463 $ 45 0.59 % $ 75,709 $ 106 0.56 %
Federal Reserve and Federal Home Loan Bank stock 17,964 189 4.21 37,632 480 5.10
Investment Securities: (1)
Taxable 711,490 4,308 2.42 716,486 4,328 2.42
Tax-Exempt (2) 586,525   7,697   5.25 520,922   6,937   5.33
Total Investment Securities 1,298,015   12,005   3.70 1,237,408   11,265   3.64
Loans held for sale 840 45 21.43 6,247 122 7.81
Loans: (3)
Commercial 3,781,045 44,092 4.66 3,449,451 38,864 4.51
Real Estate Mortgage 548,148 6,121 4.47 575,266 6,394 4.45
Installment 532,128 6,098 4.58 456,654 5,109 4.48
Tax-Exempt (2) 318,082   3,589   4.51 181,950   2,023   4.45
Total Loans 5,180,243   59,945   4.63 4,669,568   52,512   4.50
Total Earning Assets 6,526,685 72,184   4.42 6,020,317 64,363   4.28
Net unrealized gain on securities available for sale 593 10,005
Allowance for loan losses (66,933 ) (63,213 )
Cash and cash equivalents 104,017 101,913
Premises and equipment 93,018 96,698
Other assets 559,771   577,595  
Total Assets $ 7,217,151   $ 6,743,315  
Liabilities:
Interest-bearing deposits:
Interest-bearing NOW deposits $ 1,512,839 $ 838 0.22 % $ 1,300,266 $ 544 0.17 %
Money market deposits 789,378 341 0.17 865,932 491 0.23
Savings deposits 776,519 156 0.08 689,305 135 0.08
Certificates and other time deposits 1,165,079   2,789   0.96 1,186,458   2,893   0.98
Total Interest-bearing Deposits 4,243,815 4,124 0.39 4,041,961 4,063 0.40
Borrowings 664,921   3,111   1.87 520,087   2,709   2.08
Total Interest-bearing Liabilities 4,908,736 7,235 0.59 4,562,048 6,772 0.59
Noninterest-bearing deposits 1,346,542 1,255,328
Other liabilities 47,811   64,287  
Total Liabilities 6,303,089 5,881,663
Stockholders' Equity 914,062     861,652    
Total Liabilities and Stockholders' Equity $ 7,217,151   7,235   0.44 $ 6,743,315   6,772   0.45
Net Interest Income $ 64,949   $ 57,591  
Net Interest Margin 3.98 % 3.83 %
 
(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 2017 and 2016. These totals equal $3,950 and $3,136 for the three months ended March 31, 2017 and 2016, respectively.
(3) Non accruing loans have been included in the average balances.

Contacts

First Merchants Corporation
David L. Ortega, 765-378-8937
First Vice President/Director of Investor Relations
http://www.firstmerchants.com

Contacts

First Merchants Corporation
David L. Ortega, 765-378-8937
First Vice President/Director of Investor Relations
http://www.firstmerchants.com