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First Merchants Corporation Announces 3rd Quarter Earnings Per Share Of $.35

To participate, dial (Toll Free) 877-317-6789 and reference First Merchants Corporation’s third quarter earnings release. International callers please call +1 412-317-6789. A replay of the call will be available until October 25, 2013. 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 10019381.

In order to view the web cast and presentation slides, please go to http://services.choruscall.com/links/frme121025.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).

   
CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands) September 30,
2012 2011
ASSETS
Cash and cash equivalents $ 57,027 $ 60,166
Interest-bearing time deposits 35,324 16,115
Investment securities 928,716 937,828
Mortgage loans held for sale 27,711 12,257
Loans 2,836,324 2,712,938
Less: Allowance for loan losses (69,493 ) (73,074 )
Net loans 2,766,831 2,639,864
Premises and equipment 51,373 51,432
Federal Reserve and Federal Home Loan Bank stock 32,824 31,381
Interest receivable 17,519 17,770
Core deposit intangibles and goodwill 150,019 151,062
Cash surrender value of life insurance 124,702 123,524
Other real estate owned 13,780 19,425
Tax asset, deferred and receivable 29,344 35,804
Other assets 14,998 21,881
TOTAL ASSETS $ 4,250,168 $ 4,118,509
LIABILITIES
Deposits:
Noninterest-bearing $ 679,818 $ 598,139
Interest-bearing 2,514,933 2,466,111
Total Deposits 3,194,751 3,064,250
Borrowings:
Federal funds purchased 57,024 27,946
Securities sold under repurchase agreements 153,454 117,097
Federal Home Loan Bank advances 145,467 168,764
Subordinated debentures and term loans 112,169 194,961
Total Borrowings 468,114 508,768
Interest payable 1,591 2,186
Other liabilities 38,857 30,760
Total Liabilities 3,703,313 3,605,964
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 - 90,782.94 shares 90,783 90,783
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 - 28,672,177 and 28,538,164 shares 3,584 3,567
Additional paid-in capital 256,290 254,801
Retained earnings 198,094 162,669
Accumulated other comprehensive income (loss) (2,021 ) 600
Total Stockholders' Equity 546,855 512,545
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 4,250,168 $ 4,118,509
 
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars In Thousands, Except Per Share Amounts)   Three Months Ended   Nine Months Ended
September 30, September 30,
2012   2011 2012   2011
INTEREST INCOME
Loans receivable:
Taxable $ 38,160 $ 37,024 $ 110,660 $ 113,219
Tax-exempt 118 86 358 435
Investment securities:
Taxable 4,176 5,078 13,218 14,665
Tax-exempt 2,532 2,529 7,645 7,617
Federal funds sold 3
Deposits with financial institutions 16 45 69 228
Federal Reserve and Federal Home Loan Bank stock 345 323 1,035 1,005
Total Interest Income 45,347 45,085 132,985 137,172
INTEREST EXPENSE
Deposits 3,517 5,046 11,566 17,776
Federal funds purchased 38 16 62 22
Securities sold under repurchase agreements 211 384 703 1,148
Federal Home Loan Bank advances 492 1,089 2,123 3,067
Subordinated debentures and term loans 1,187 2,699 4,460 7,984
Total Interest Expense 5,445 9,234 18,914 29,997
NET INTEREST INCOME 39,902 35,851 114,071 107,175
Provision for loan losses 4,609 5,556 14,029 16,775
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 35,293 30,295 100,042 90,400
OTHER INCOME
Service charges on deposit accounts 2,913 3,169 8,625 8,945
Fiduciary activities 1,986 1,881 5,907 5,846
Other customer fees 2,740 2,583 8,476 7,452
Commission income 1,618 1,528 4,770 4,440
Earnings on cash surrender value of life insurance 685 644 2,725 1,793
Net gains and fees on sales of loans 2,849 1,768 7,115 4,671
Net realized gains on sales of available for sale securities 843 861 2,134 2,149
Other-than-temporary impairment on available for sale securities (400 )
Gain on FDIC modified whole bank transaction 9,124
Other income 639 796 1,220 1,253
Total Other Income 14,273 13,230 50,096 36,149
OTHER EXPENSES
Salaries and employee benefits 20,083 19,964 59,078 55,700
Net occupancy 2,568 2,530 7,692 7,690
Equipment 1,798 1,662 5,259 5,122
Marketing 536 534 1,542 1,352
Outside data processing fees 1,413 1,391 4,295 4,294
Printing and office supplies 287 301 848 902
Core deposit amortization 489 755 1,438 2,957
FDIC assessments 792 1,201 2,771 4,756
Other real estate owned and credit-related expenses 2,104 2,007 6,412 8,045
Other expenses 4,334 3,877 13,277 11,684
Total Other Expenses 34,404 34,222 102,612 102,502
INCOME BEFORE INCOME TAX 15,162 9,303 47,526 24,047
Income tax expense 3,926 2,561 12,714 6,356
NET INCOME 11,236 6,742 34,812 17,691
Loss on CPP unamortized discount (1,401 ) (1,401 )
Loss on extinguishment of trust preferred securities (10,857 ) (10,857 )
Preferred stock dividends and discount accretion (1,134 ) (868 ) (3,404 ) (2,846 )
NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS $ 10,102 $ (6,384 ) $ 31,408 $ 2,587

 

Per Share Data:

Basic Net Income (Loss) Available to Common Stockholders $ 0.35 $ (0.25 ) $ 1.09 $ 0.10
Diluted Net Income (Loss) Available to Common Stockholders $ 0.35 $ (0.25 ) $ 1.09 $ 0.10
Cash Dividends Paid $ 0.03 $ 0.01 $ 0.07 $ 0.03
Average Diluted Shares Outstanding (in thousands) 28,888 26,367 28,819 26,019
 
FINANCIAL HIGHLIGHTS        
(Dollars In Thousands) Three Months Ended Nine Months Ended
September 30, September 30,
2012 2011 2012 2011
NET CHARGE OFF'S $ 5,259 $ 9,615 $ 15,434 $ 26,678
 
AVERAGE BALANCES:
Total Assets $ 4,237,590 $ 4,113,316 $ 4,230,186 $ 4,124,697
Total Loans 2,845,398 2,725,449 2,803,706 2,758,635
Total Earning Assets 3,829,127 3,714,401 3,818,805 3,736,503
Total Deposits 3,248,100 3,101,458 3,243,217 3,179,218
Total Stockholders' Equity 540,988 478,836 530,153 466,671
 
FINANCIAL RATIOS:
Return on Average Assets 0.95 % -0.62 % 0.99 % 0.08 %
Return on Average Stockholders' Equity 7.47 (5.33 ) 7.90 0.74
Return on Average Common Stockholders' Equity 8.98 (6.23 ) 9.53 0.86
Average Earning Assets to Average Assets 90.36 90.30 90.28 90.59
Allowance for Loan Losses as % of Total Loans 2.43 2.68 2.43 2.68
Net Charge Off's as % of Average Loans (Annualized) 0.74 1.41 0.73 1.29
Average Stockholders' Equity to Average Assets 12.77 11.64 12.53 11.31
Tax Equivalent Yield on Earning Assets 4.89 5.01 4.79 5.05
Cost of Supporting Liabilities 0.57 0.99 0.66 1.07
Net Interest Margin (FTE) on Earning Assets 4.32 4.02 4.13 3.98
         
NON-PERFORMING ASSETS
(Dollars In Thousands) September 30, June 30, March 31, December 31, September 30,
2012 2012 2012 2011 2011
Non-Accrual Loans $ 56,999 $ 63,127 $ 74,456 $ 69,592 $ 78,933
Renegotiated Loans 6,871 3,921 6,695   14,308   6,701
Non-Performing Loans (NPL) 63,870 67,048 81,151 83,900 85,634
Other Real Estate Owned 13,780 14,183 15,628   16,289   19,425
Non-Performing Assets (NPA) 77,650 81,231 96,779 100,189 105,059
90+ Days Delinquent 1,974 665 253   580   1,595
NPAS & 90 Day Delinquent $ 79,624 $ 81,896 $ 97,032 $ 100,769 $ 106,654

 

Loan Loss Reserve

$ 69,493 $ 70,143 $ 70,369 $ 70,898 $ 73,074
Quarterly Net Charge-offs 5,259 4,771 5,404 8,031 9,615
NPAs / Actual Assets % 1.83 % 1.92 % 2.28 % 2.40 % 2.55 %
NPAs & 90 Day / Actual Assets % 1.87 % 1.93 % 2.29 % 2.41 % 2.59 %
NPAs / Actual Loans and REO % 2.70 % 2.87 % 3.42 % 3.65 % 3.83 %
Loan Loss Reserves / Actual Loans (%) 2.43 % 2.49 % 2.50 % 2.60 % 2.68 %
Net Charge Off's as % of Average Loans (Annualized) 0.74 % 0.68 % 0.78 % 1.18 % 1.41 %
 
CONSOLIDATED BALANCE SHEETS          
(Dollars In Thousands) September 30, June 30, March 31, December 31, September 30,
2012 2012 2012 2011 2011
ASSETS
Cash and due from banks $ 57,027 $ 68,493 $ 60,991 $ 73,312 $ 60,166
Interest-bearing time deposits 35,324 41,760 34,290 52,851 16,115
Investment securities 928,716 944,321 960,032 946,400 937,828
Mortgage loans held for sale 27,711 15,278 22,138 17,864 12,257
Loans 2,836,324 2,797,634 2,792,989 2,713,415 2,712,938
Less: Allowance for loan losses (69,493 ) (70,143 ) (70,369 ) (70,898 ) (73,074 )
Net loans 2,766,831 2,727,491 2,722,620 2,642,517 2,639,864
Premises and equipment 51,373 51,335 51,541 51,013 51,432
Federal Reserve and Federal Home Loan Bank stock 32,824 33,033 33,026 31,270 31,381
Interest receivable 17,519 16,506 16,730 17,723 17,770
Core deposit intangibles and goodwill 150,019 150,006 150,486 150,471 151,062
Cash surrender value of life insurance 124,702 124,018 123,355 124,329 123,524
Other real estate owned 13,780 14,183 15,628 16,289 19,425
Tax asset, deferred and receivable 29,344 32,003 32,112 36,424 35,804
Other assets 14,998 13,996 13,417 12,613 21,881
TOTAL ASSETS $ 4,250,168 $ 4,232,423 $ 4,236,366 $ 4,173,076 $ 4,118,509
LIABILITIES
Deposits:
Noninterest-bearing $ 679,818 $ 684,101 $ 677,643 $ 646,508 $ 598,139
Interest-bearing 2,514,933 2,604,797 2,601,935 2,488,147 2,466,111
Total Deposits 3,194,751 3,288,898 3,279,578 3,134,655 3,064,250
Borrowings:
Federal funds purchased 57,024 652 10,936 27,946
Securities sold under repurchase agreements 153,454 160,127 139,308 156,305 117,097
Federal Home Loan Bank advances 145,467 96,847 131,496 138,095 168,764
Subordinated debentures and term loans 112,169 115,951 115,969 194,974 194,961
Total Borrowings 468,114 373,577 397,709 489,374 508,768
Interest payable 1,591 2,168 2,094 2,925 2,186
Other liabilities 38,857 32,104 29,044 31,655 30,760
Total Liabilities 3,703,313 3,696,747 3,708,425 3,658,609 3,605,964
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 90,783 90,783 90,783 90,783 90,783
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 3,584 3,580 3,578 3,570 3,567
Additional paid-in capital 256,290 255,632 255,116 254,874 254,801
Retained earnings 198,094 188,863 181,664 168,717 162,669
Accumulated other comprehensive income (loss) (2,021 ) (3,307 ) (3,325 ) (3,602 ) 600
Total Stockholders' Equity 546,855 535,676 527,941 514,467 512,545
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 4,250,168 $ 4,232,423 $ 4,236,366 $ 4,173,076 $ 4,118,509
         
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars In Thousands, Except Per Share Amounts) September 30, June 30, March 31, December 31, September 30,
2012 2012 2012 2011 2011
INTEREST INCOME
Loans receivable:
Taxable $ 38,160 $ 36,652 $ 35,848 $ 36,497 $ 37,024
Tax exempt 118 123 117 93 86
Investment securities:
Taxable 4,176 4,468 4,574 4,565 5,078
Tax exempt 2,532 2,551 2,562 2,550 2,529
Federal funds sold
Deposits with financial institutions 16 28 25 54 45
Federal Reserve and Federal Home Loan Bank stock 345 347 343 314 323
Total Interest Income 45,347 44,169 43,469 44,073 45,085
INTEREST EXPENSE
Deposits 3,517 3,939 4,110 4,505 5,046
Federal funds purchased 38 12 12 3 16
Securities sold under repurchase agreements 211 197 295 363 384
Federal Home Loan Bank advances 492 637 994 1,114 1,089
Subordinated debentures, revolving credit lines and term loans 1,187 1,331 1,942 1,908 2,699
Total Interest Expense 5,445 6,116 7,353 7,893 9,234
NET INTEREST INCOME 39,902 38,053 36,116 36,180 35,851
Provision for loan losses 4,609 4,545 4,875 5,855 5,556
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 35,293 33,508 31,241 30,325 30,295
OTHER INCOME
Service charges on deposit accounts 2,913 2,893 2,819 3,027 3,169
Fiduciary activities 1,986 1,938 1,983 1,804 1,881
Other customer fees 2,740 3,150 2,586 2,572 2,583
Commission income 1,618 1,485 1,667 1,220 1,528
Earnings on cash surrender value of life insurance 685 662 1,378 803 644
Net gains and fees on sales of loans 2,849 2,314 1,952 2,747 1,768
Net realized gains on sales of available for sale securities 843 502 789 290 861
Gain on FDIC modified whole bank transaction 9,124
Other income 639 221 360 508 796
Total Other Income 14,273 13,165 22,658 12,971 13,230
OTHER EXPENSES
Salaries and employee benefits 20,083 19,641 19,354 19,035 19,964
Net occupancy 2,568 2,473 2,651 2,428 2,530
Equipment 1,798 1,656 1,805 1,672 1,662
Marketing 536 564 442 650 534
Outside data processing fees 1,413 1,506 1,376 1,377 1,391
Printing and office supplies 287 294 267 340 301
Core deposit amortization 489 480 469 591 755
FDIC assessments 792 862 1,117 775 1,201
Other real estate owned and credit-related expenses 2,104 2,122 2,186 2,569 2,007
Other expenses 4,334 4,582 4,361 3,999 3,877
Total Other Expenses 34,404 34,180 34,028 33,436 34,222
INCOME BEFORE INCOME TAX 15,162 12,493 19,871 9,860 9,303
Income tax expense 3,926 3,288 5,500 2,299 2,561
NET INCOME 11,236 9,205 14,371 7,561 6,742
Loss on CPP unamortized discount (1,401 )
Loss on extinguishment of trust preferred securities (10,857 )
Preferred stock dividends and discount accretion (1,134 ) (1,135 ) (1,135 ) (1,135 ) (868 )
NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS $ 10,102 $ 8,070 $ 13,236 $ 6,426 $ (6,384 )

 

PER SHARE:

Basic Net Income (Loss) Available to Common Stockholders $ 0.35 $ 0.28 $ 0.46 $ 0.24 $ (0.25 )
Diluted Net Income (Loss) Available to Common Stockholders $ 0.35 $ 0.28 $ 0.46 $ 0.24 $ (0.25 )
Cash Dividends Paid $ 0.03 $ 0.03 $ 0.01 $ 0.01 $ 0.01
Average Diluted Shares Outstanding (in thousands) 28,888 28,815 28,755 28,700 26,367

FINANCIAL RATIOS:

Return on Average Assets 0.95 % 0.76 % 1.26 % 0.61 % -0.62 %
Return on Average Stockholders' Equity 7.47 6.07 10.23 5.01 (5.33 )
Return on Average Common Stockholders' Equity 8.98 7.32 12.40 6.08 (6.23 )
Average Earning Assets to Average Assets 90.36 90.30 90.16 89.66 90.30
Allowance for Loan Losses as % of Total Loans 2.43 2.49 2.50 2.60 2.68
Net Charge Off's as % of Average Loans (Annualized) 0.74 0.68 0.78 1.18 1.41
Average Stockholders' Equity to Average Assets 12.77 12.51 12.32 12.22 11.64
Tax Equivalent Yield on Earning Assets 4.89 4.75 4.74 4.83 5.01
Cost of Supporting Liabilities 0.57 0.64 0.78 0.84 0.99
Net Interest Margin (FTE) on Earning Assets 4.32 4.11 3.96 3.99 4.02
         
LOANS
(Dollars In Thousands) September 30, June 30, March 31, December 31, September 30,
2012 2012 2012 2011 2011
Commercial and industrial loans $ 592,517 $ 552,353 $ 546,304 $ 532,523 $ 518,848
Agricultural production financing and other loans to farmers 107,166 106,135 97,165 104,526 106,761
Real estate loans:
Construction 93,610 99,588 92,694 81,780 70,044
Commercial and farm land 1,241,054 1,219,114 1,229,195 1,194,230 1,196,270
Residential 475,272 480,917 498,354 481,493 495,954
Home Equity 204,888 207,250 210,564 191,631 196,191
Individuals' loans for household and other personal expenditures 77,171 83,933 78,711 84,172 90,810
Lease financing receivables, net of unearned income 2,970 2,976 3,112 3,555 4,160
Other loans 41,676 45,368 36,890 39,505 33,900
Loans 2,836,324 2,797,634 2,792,989 2,713,415 2,712,938
Allowance for loan losses (69,493 ) (70,143 ) (70,369 ) (70,898 ) (73,074 )
NET LOANS $ 2,766,831 $ 2,727,491 $ 2,722,620 $ 2,642,517 $ 2,639,864
 
DEPOSITS
(Dollars In Thousands) September 30, June 30, March 31, December 31, September 30,
2012 2012 2012 2011 2011
Demand deposits $ 1,455,568 $ 1,521,194 $ 1,470,938 $ 1,438,513 $ 1,360,174
Savings deposits 837,409 822,299 801,935 757,166 712,545
Certificates and other time deposits of $100,000 or more 256,077 261,156 269,796 264,787 278,115
Other certificates and time deposits 527,304 546,182 566,934 551,247 570,380
Brokered deposits 118,393 138,067 169,975 122,942 143,036
TOTAL DEPOSITS $ 3,194,751 $ 3,288,898 $ 3,279,578 $ 3,134,655 $ 3,064,250




Stock quotes in this article: FRME 

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