Attached files
| file | filename |
|---|---|
| 8-K - FIRST MERCHANTS CORPORATION - 2ND QTR 2012 EARNINGS RELEASE - FIRST MERCHANTS CORP | f8k2ndqtr2012earningsrelease.htm |
N / E / W / S R / E / L / E / A / S / E
July 26, 2012
FOR IMMEDIATE RELEASE
For more information, contact:
David L. Ortega, First Vice President/Director of Investor Relations
765-378-8937
http://www.firstmerchants.com/
SOURCE: First Merchants Corporation, Muncie, Indiana
FIRST MERCHANTS CORPORATION ANNOUNCES SECOND QUARTER 2012 EARNINGS PER SHARE INCREASE OF 56 PERCENT
First Merchants Corporation (NASDAQ – FRME) has reported second quarter 2012 earnings per share of $.28 compared to $.18 during the same period in 2011. The increase of 56 percent reflects the Corporation’s year-over-year improvements in revenue growth, credit quality and efficiency. Net income available to common shareholders totaled $8.1 million for the quarter, a $3.6 million or 79 percent increase over the second quarter of 2011 results.
Year-to-date core earnings per share totaled $.53 per share, an $.18 increase over the prior year total of $.35. In addition to core year-to-date earnings of $.53, the Corporation recorded a gain on its FDIC purchase and assumption agreement with SCB Bank in Shelbyville, Indiana of $.21 per share. Actual earnings per share totaled $.74 compared to $.35 during the same period in 2011, an increase of 111 percent. Year-to-date net income available to common shareholders equaled $21.3 million compared to $9.0 million earned in the first six months of 2011.
Michael C. Rechin, President and Chief Executive Officer, stated, “Our second quarter 2012 results reflect the momentum that has been building within First Merchants. The Company’s strong start to the year has rekindled a winner’s confidence within our team of steadfast, competitive employees. The balance sheet now boasts much stronger capital and reserves with ample liquidity for growth and the income statement now produces even stronger operating income with good efficiency while producing predictable bottom line results. With the SCB data conversion behind us, we are now looking for additional strategic
opportunities to capitalize on our history of successful operational and cultural integrations.”
Total assets equaled $4.2 billion, as loans and investments total $2.8 billion and $944 million, respectively. The Corporation’s loan-to-deposit ratio is now 86 percent and the loan-to-asset ratio is 66 percent.
Net-interest income totaled $38.1 million for the second quarter of 2012 and net-interest margin remained strong totaling 4.11 percent as yields on earning assets totaled 4.75 percent and the cost of supporting liabilities totaled .64 percent. Discount accretion resulting from the SCB transaction added $726,000, or 7.5 basis points to net-interest income and net-interest margin for the second quarter of 2012. YTD net-interest income totaled $74.2 million, an increase of $2.8 million over the first six months of 2011.
Non-interest income totaled $13.2 million for the second quarter of 2012 and $35.8 million year-to-date. After normalizing for bond gains and losses and the first quarter 2012 FDIC gain, non-interest income improved by $3.4 million, or 15 percent, during the first six months of the year. Non-interest expense declined slightly on both a quarterly and year-to-date basis totaling $34.2 million and $68.2 million, respectively.
Provision expense totaled $4.5 million for the second quarter 2012 and $9.4 million year-to-date, compared to $5.6 million and $11.2 million in 2011. Net charge-offs were $4.8 million for the second quarter 2012 and $10.2 million year-to-date, compared to $9.4 and 17.1 million in 2011. The allowance for loan losses is $70.1 million, or 2.5 percent of total loans and 111 percent of non-accrual loans. Our non-accrual coverage ratio totaled 88 percent as of June 30, 2011. Total non-performing assets, including SCB, declined by $28 million year-over-year, and now total $81.2 million.
As of June 30, 2012, the Corporation’s total risk-based capital equaled 16.75 percent, Tier 1 common risk-based capital equaled 9.54 percent, and tangible common equity ratio totaled 7.27 percent. As of June 30, 2011 the Corporation’s total risk-based capital equaled 16.05 percent, Tier 1 common risk-based capital equaled 8.06 percent, and tangible common equity ratio totaled 6.36 percent. Additionally, the Corporation increased its common dividend during the quarter from $.01 per share to $.03 per share.
CONFERENCE CALL
First Merchants Corporation will conduct a second quarter earnings conference call and web cast at 2:30 p.m. (ET) on Thursday, July 26, 2012.
To participate, dial (Toll Free) 877-317-6789 and reference First Merchants Corporation’s second quarter earnings release. International callers please call +1 412-317-6789. A replay of the call will be available until July 26, 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 10016084.
In order to view the web cast and presentation slides, please go to http://services.choruscall.com/links/frme120726.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)
|
June 30,
|
|||||||
|
2012
|
2011
|
|||||||
|
ASSETS
|
||||||||
|
Cash and cash equivalents
|
$
|
68,493
|
$
|
50,874
|
||||
|
Interest-bearing time deposits
|
41,760
|
15,865
|
||||||
|
Investment securities
|
944,321
|
938,366
|
||||||
|
Mortgage loans held for sale
|
15,278
|
4,846
|
||||||
|
Loans
|
2,797,634
|
2,724,022
|
||||||
|
Less: Allowance for loan losses
|
(70,143
|
)
|
(77,133
|
)
|
||||
|
Net loans
|
2,727,491
|
2,646,889
|
||||||
|
Premises and equipment
|
51,335
|
51,851
|
||||||
|
Federal Reserve and Federal Home Loan Bank stock
|
33,033
|
31,384
|
||||||
|
Interest receivable
|
16,506
|
17,001
|
||||||
|
Core deposit intangibles and goodwill
|
150,006
|
151,817
|
||||||
|
Cash surrender value of life insurance
|
124,018
|
102,880
|
||||||
|
Other real estate owned
|
14,183
|
15,437
|
||||||
|
Tax asset, deferred and receivable
|
32,003
|
36,790
|
||||||
|
Other assets
|
13,996
|
30,218
|
||||||
|
TOTAL ASSETS
|
$
|
4,232,423
|
$
|
4,094,218
|
||||
|
LIABILITIES
|
||||||||
|
Deposits:
|
||||||||
|
Noninterest-bearing
|
$
|
684,101
|
$
|
590,199
|
||||
|
Interest-bearing
|
2,604,797
|
2,552,334
|
||||||
|
Total Deposits
|
3,288,898
|
3,142,533
|
||||||
|
Borrowings:
|
||||||||
|
Federal funds purchased
|
652
|
22,978
|
||||||
|
Securities sold under repurchase agreements
|
160,127
|
124,236
|
||||||
|
Federal Home Loan Bank advances
|
96,847
|
74,050
|
||||||
|
Subordinated debentures and term loans
|
115,951
|
226,580
|
||||||
|
Total Borrowings
|
373,577
|
447,844
|
||||||
|
Interest payable
|
2,168
|
3,601
|
||||||
|
Other liabilities
|
32,104
|
31,762
|
||||||
|
Total Liabilities
|
3,696,747
|
3,625,740
|
||||||
|
STOCKHOLDERS' EQUITY
|
||||||||
|
Preferred Stock, no-par value:
|
||||||||
|
Authorized -- 500,000 shares
|
||||||||
|
Series A, Issued and outstanding - 0 and 69,600 shares
|
68,118
|
|||||||
|
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 and 0 shares
|
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 - 28,643,264 and 25,690,649 shares
|
3,580
|
3,211
|
||||||
|
Additional paid-in capital
|
255,632
|
233,544
|
||||||
|
Retained earnings
|
188,863
|
169,313
|
||||||
|
Accumulated other comprehensive income (loss)
|
(3,307
|
)
|
(5,833
|
)
|
||||
|
Total Stockholders' Equity
|
535,676
|
468,478
|
||||||
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
4,232,423
|
$
|
4,094,218
|
||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||||||||||
|
(Dollars in Thousands, Except Per Share Amounts)
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
|
June 30,
|
June 30,
|
|||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||
|
INTEREST INCOME
|
||||||||||||||||
|
Loans receivable:
|
||||||||||||||||
|
Taxable
|
$
|
36,652
|
$
|
37,457
|
$
|
72,500
|
$
|
76,195
|
||||||||
|
Tax-exempt
|
123
|
247
|
240
|
349
|
||||||||||||
|
Investment securities:
|
||||||||||||||||
|
Taxable
|
4,468
|
5,040
|
9,042
|
9,587
|
||||||||||||
|
Tax-exempt
|
2,551
|
2,535
|
5,113
|
5,088
|
||||||||||||
|
Federal funds sold
|
1
|
3
|
||||||||||||||
|
Deposits with financial institutions
|
28
|
100
|
53
|
183
|
||||||||||||
|
Federal Reserve and Federal Home Loan Bank stock
|
347
|
341
|
690
|
682
|
||||||||||||
|
Total Interest Income
|
44,169
|
45,721
|
87,638
|
92,087
|
||||||||||||
|
INTEREST EXPENSE
|
||||||||||||||||
|
Deposits
|
3,939
|
5,864
|
8,049
|
12,730
|
||||||||||||
|
Federal funds purchased
|
12
|
3
|
24
|
6
|
||||||||||||
|
Securities sold under repurchase agreements
|
197
|
386
|
492
|
764
|
||||||||||||
|
Federal Home Loan Bank advances
|
637
|
977
|
1,631
|
1,978
|
||||||||||||
|
Subordinated debentures and term loans
|
1,331
|
2,644
|
3,273
|
5,285
|
||||||||||||
|
Total Interest Expense
|
6,116
|
9,874
|
13,469
|
20,763
|
||||||||||||
|
NET INTEREST INCOME
|
38,053
|
35,847
|
74,169
|
71,324
|
||||||||||||
|
Provision for loan losses
|
4,545
|
5,625
|
9,420
|
11,219
|
||||||||||||
|
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
|
33,508
|
30,222
|
64,749
|
60,105
|
||||||||||||
|
OTHER INCOME
|
||||||||||||||||
|
Service charges on deposit accounts
|
2,893
|
2,997
|
5,712
|
5,776
|
||||||||||||
|
Fiduciary activities
|
1,938
|
1,929
|
3,921
|
3,965
|
||||||||||||
|
Other customer fees
|
3,150
|
2,634
|
5,736
|
4,869
|
||||||||||||
|
Commission income
|
1,485
|
1,024
|
3,152
|
2,912
|
||||||||||||
|
Earnings on cash surrender value of life insurance
|
662
|
571
|
2,040
|
1,149
|
||||||||||||
|
Net gains and fees on sales of loans
|
2,314
|
1,030
|
4,266
|
2,903
|
||||||||||||
|
Net realized gains on sales of available for sale securities
|
502
|
825
|
1,291
|
1,288
|
||||||||||||
|
Other-than-temporary impairment on available for sale securities
|
(400
|
)
|
||||||||||||||
|
Gain on FDIC modified whole bank transaction
|
9,124
|
|||||||||||||||
|
Other income
|
221
|
51
|
581
|
457
|
||||||||||||
|
Total Other Income
|
13,165
|
11,061
|
35,823
|
22,919
|
||||||||||||
|
OTHER EXPENSES
|
||||||||||||||||
|
Salaries and employee benefits
|
19,641
|
18,560
|
38,995
|
35,736
|
||||||||||||
|
Net occupancy
|
2,473
|
2,415
|
5,124
|
5,160
|
||||||||||||
|
Equipment
|
1,656
|
1,677
|
3,461
|
3,460
|
||||||||||||
|
Marketing
|
564
|
436
|
1,006
|
818
|
||||||||||||
|
Outside data processing fees
|
1,506
|
1,458
|
2,882
|
2,903
|
||||||||||||
|
Printing and office supplies
|
294
|
313
|
561
|
601
|
||||||||||||
|
Core deposit amortization
|
480
|
1,101
|
949
|
2,202
|
||||||||||||
|
FDIC assessments
|
862
|
1,451
|
1,979
|
3,555
|
||||||||||||
|
Other real estate owned and credit-related expenses
|
2,122
|
2,843
|
4,308
|
6,038
|
||||||||||||
|
Other expenses
|
4,582
|
4,145
|
8,943
|
7,807
|
||||||||||||
|
Total Other Expenses
|
34,180
|
34,399
|
68,208
|
68,280
|
||||||||||||
|
INCOME BEFORE INCOME TAX
|
12,493
|
6,884
|
32,364
|
14,744
|
||||||||||||
|
Income tax expense
|
3,288
|
1,396
|
8,788
|
3,795
|
||||||||||||
|
NET INCOME
|
9,205
|
5,488
|
23,576
|
10,949
|
||||||||||||
|
Preferred stock dividends and discount accretion
|
(1,135
|
)
|
(990
|
)
|
(2,270
|
)
|
(1,978
|
)
|
||||||||
|
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS
|
$
|
8,070
|
$
|
4,498
|
$
|
21,306
|
$
|
8,971
|
||||||||
|
Per Share Data:
|
||||||||||||||||
|
Basic Net Income Available to Common Stockholders
|
$
|
0.28
|
$
|
0.18
|
$
|
0.74
|
$
|
0.35
|
||||||||
|
Diluted Net Income Available to Common Stockholders
|
$
|
0.28
|
$
|
0.18
|
$
|
0.74
|
$
|
0.35
|
||||||||
|
Cash Dividends Paid
|
$
|
0.03
|
$
|
0.01
|
$
|
0.04
|
$
|
0.02
|
||||||||
|
Average Diluted Shares Outstanding (in thousands)
|
28,815
|
25,783
|
28,782
|
25,773
|
||||||||||||
|
FINANCIAL HIGHLIGHTS
|
||||||||||||||||
|
(Dollars in Thousands)
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
|
June 30,
|
June 30,
|
|||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||
|
NET CHARGE OFF'S
|
$
|
4,771
|
$
|
9,428
|
$
|
10,175
|
$
|
17,063
|
||||||||
|
AVERAGE BALANCES:
|
||||||||||||||||
|
Total Assets
|
$
|
4,249,931
|
$
|
4,138,484
|
$
|
4,226,443
|
$
|
4,130,481
|
||||||||
|
Total Loans
|
2,801,375
|
2,747,021
|
2,782,631
|
2,775,504
|
||||||||||||
|
Total Earning Assets
|
3,837,738
|
3,751,241
|
3,813,587
|
3,747,738
|
||||||||||||
|
Total Deposits
|
3,318,065
|
3,218,979
|
3,240,748
|
3,218,743
|
||||||||||||
|
Total Stockholders' Equity
|
531,578
|
464,739
|
524,676
|
460,488
|
||||||||||||
|
FINANCIAL RATIOS:
|
||||||||||||||||
|
Return on Average Assets
|
0.76
|
%
|
0.43
|
%
|
1.01
|
%
|
0.43
|
%
|
||||||||
|
Return on Average Stockholders' Equity
|
6.07
|
3.87
|
8.12
|
3.90
|
||||||||||||
|
Average Earning Assets to Average Assets
|
90.30
|
90.64
|
90.23
|
90.73
|
||||||||||||
|
Allowance for Loan Losses as % of Total Loans
|
2.49
|
2.83
|
2.49
|
2.83
|
||||||||||||
|
Net Charge Off's as % of Average Loans (Annualized)
|
0.68
|
1.37
|
0.73
|
1.23
|
||||||||||||
|
Average Stockholders' Equity to Average Assets
|
12.51
|
11.23
|
12.41
|
11.15
|
||||||||||||
|
Tax Equivalent Yield on Earning Assets
|
4.75
|
5.04
|
4.75
|
5.07
|
||||||||||||
|
Cost of Supporting Liabilities
|
0.64
|
1.05
|
0.71
|
1.11
|
||||||||||||
|
Net Interest Margin (FTE) on Earning Assets
|
4.11
|
3.99
|
4.04
|
3.96
|
||||||||||||
|
NON-PERFORMING ASSETS
|
||||||||||||||||||||
|
(Dollars in Thousands)
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
June 30,
|
|||||||||||||||
|
2012
|
2012
|
2011
|
2011
|
2011
|
||||||||||||||||
|
Non-Accrual Loans
|
$
|
63,127
|
$
|
74,456
|
$
|
69,592
|
$
|
78,933
|
$
|
87,583
|
||||||||||
|
Renegotiated Loans
|
3,921
|
6,695
|
14,308
|
6,701
|
6,269
|
|||||||||||||||
|
Non-Performing Loans (NPL)
|
67,048
|
81,151
|
83,900
|
85,634
|
93,852
|
|||||||||||||||
|
Other Real Estate Owned
|
14,183
|
15,628
|
16,289
|
19,425
|
15,437
|
|||||||||||||||
|
Non-Performing Assets (NPA)
|
81,231
|
96,779
|
100,189
|
105,059
|
109,289
|
|||||||||||||||
|
90+ Days Delinquent
|
665
|
253
|
580
|
1,595
|
227
|
|||||||||||||||
|
NPAS & 90 Day Delinquent
|
$
|
81,896
|
$
|
97,032
|
$
|
100,769
|
$
|
106,654
|
$
|
109,516
|
||||||||||
|
Loan Loss Reserve
|
$
|
70,143
|
$
|
70,369
|
$
|
70,898
|
$
|
73,074
|
$
|
77,133
|
||||||||||
|
Quarterly Net Charge-offs
|
4,771
|
$
|
5,404
|
8,031
|
9,615
|
9,428
|
||||||||||||||
|
NPAs / Actual Assets %
|
1.92
|
%
|
2.28
|
%
|
2.40
|
%
|
2.55
|
%
|
2.67
|
%
|
||||||||||
|
NPAs & 90 Day / Actual Assets %
|
1.93
|
%
|
2.29
|
%
|
2.41
|
%
|
2.59
|
%
|
2.67
|
%
|
||||||||||
|
NPAs / Actual Loans and REO %
|
2.87
|
%
|
3.42
|
%
|
3.65
|
%
|
3.83
|
%
|
3.98
|
%
|
||||||||||
|
Loan Loss Reserves / Actual Loans (%)
|
2.49
|
%
|
2.50
|
%
|
2.60
|
%
|
2.68
|
%
|
2.83
|
%
|
||||||||||
|
Net Charge Off's as % of Average Loans (Annualized)
|
0.68
|
%
|
0.78
|
%
|
1.18
|
%
|
1.41
|
%
|
1.37
|
%
|
||||||||||
|
CONSOLIDATED BALANCE SHEETS
|
||||||||||||||||||||
|
(Dollars in Thousands)
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
June 30,
|
|||||||||||||||
|
2012
|
2012
|
2011
|
2011
|
2011
|
||||||||||||||||
|
ASSETS
|
||||||||||||||||||||
|
Cash and due from banks
|
$
|
68,493
|
$
|
60,991
|
$
|
73,312
|
$
|
60,166
|
$
|
50,874
|
||||||||||
|
Interest-bearing time deposits
|
41,760
|
34,290
|
52,851
|
16,115
|
15,865
|
|||||||||||||||
|
Investment securities
|
944,321
|
960,032
|
946,400
|
937,828
|
938,366
|
|||||||||||||||
|
Mortgage loans held for sale
|
15,278
|
22,138
|
17,864
|
12,257
|
4,846
|
|||||||||||||||
|
Loans
|
2,797,634
|
2,792,989
|
2,713,415
|
2,712,938
|
2,724,022
|
|||||||||||||||
|
Less: Allowance for loan losses
|
(70,143
|
)
|
(70,369
|
)
|
(70,898
|
)
|
(73,074
|
)
|
(77,133
|
)
|
||||||||||
|
Net loans
|
2,727,491
|
2,722,620
|
2,642,517
|
2,639,864
|
2,646,889
|
|||||||||||||||
|
Premises and equipment
|
51,335
|
51,541
|
51,013
|
51,432
|
51,851
|
|||||||||||||||
|
Federal Reserve and Federal Home Loan Bank stock
|
33,033
|
33,026
|
31,270
|
31,381
|
31,384
|
|||||||||||||||
|
Interest receivable
|
16,506
|
16,730
|
17,723
|
17,770
|
17,001
|
|||||||||||||||
|
Core deposit intangibles and goodwill
|
150,006
|
150,486
|
150,471
|
151,062
|
151,817
|
|||||||||||||||
|
Cash surrender value of life insurance
|
124,018
|
123,355
|
124,329
|
123,524
|
102,880
|
|||||||||||||||
|
Other real estate owned
|
14,183
|
15,628
|
16,289
|
19,425
|
15,437
|
|||||||||||||||
|
Tax asset, deferred and receivable
|
32,003
|
32,112
|
36,424
|
35,804
|
36,790
|
|||||||||||||||
|
Other assets
|
13,996
|
13,417
|
12,613
|
21,881
|
30,218
|
|||||||||||||||
|
TOTAL ASSETS
|
$
|
4,232,423
|
$
|
4,236,366
|
$
|
4,173,076
|
$
|
4,118,509
|
$
|
4,094,218
|
||||||||||
|
LIABILITIES
|
||||||||||||||||||||
|
Deposits:
|
||||||||||||||||||||
|
Noninterest-bearing
|
$
|
684,101
|
$
|
677,643
|
$
|
646,508
|
$
|
598,139
|
$
|
590,199
|
||||||||||
|
Interest-bearing
|
2,604,797
|
2,601,935
|
2,488,147
|
2,466,111
|
2,552,334
|
|||||||||||||||
|
Total Deposits
|
3,288,898
|
3,279,578
|
3,134,655
|
3,064,250
|
3,142,533
|
|||||||||||||||
|
Borrowings:
|
||||||||||||||||||||
|
Federal funds purchased
|
652
|
10,936
|
27,946
|
22,978
|
||||||||||||||||
|
Securities sold under repurchase agreements
|
160,127
|
139,308
|
156,305
|
117,097
|
124,236
|
|||||||||||||||
|
Federal Home Loan Bank advances
|
96,847
|
131,496
|
138,095
|
168,764
|
74,050
|
|||||||||||||||
|
Subordinated debentures, revolving credit lines and term loans
|
115,951
|
115,969
|
194,974
|
194,961
|
226,580
|
|||||||||||||||
|
Total Borrowings
|
373,577
|
397,709
|
489,374
|
508,768
|
447,844
|
|||||||||||||||
|
Interest payable
|
2,168
|
2,094
|
2,925
|
2,186
|
3,601
|
|||||||||||||||
|
Other liabilities
|
32,104
|
29,044
|
31,655
|
30,760
|
31,762
|
|||||||||||||||
|
Total Liabilities
|
3,696,747
|
3,708,425
|
3,658,609
|
3,605,964
|
3,625,740
|
|||||||||||||||
|
STOCKHOLDERS' EQUITY
|
||||||||||||||||||||
|
Preferred Stock, no-par value:
|
||||||||||||||||||||
|
Authorized -- 500,000 shares
|
||||||||||||||||||||
|
Series A, Issued and outstanding
|
68,118
|
|||||||||||||||||||
|
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
|
||||||||||||||||
|
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
|
3,580
|
3,578
|
3,570
|
3,567
|
3,211
|
|||||||||||||||
|
Additional paid-in capital
|
255,632
|
255,116
|
254,874
|
254,801
|
233,544
|
|||||||||||||||
|
Retained earnings
|
188,863
|
181,664
|
168,717
|
162,669
|
169,313
|
|||||||||||||||
|
Accumulated other comprehensive income (loss)
|
(3,307
|
)
|
(3,325
|
)
|
(3,602
|
)
|
600
|
(5,833
|
)
|
|||||||||||
|
Total Stockholders' Equity
|
535,676
|
527,941
|
514,467
|
512,545
|
468,478
|
|||||||||||||||
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
4,232,423
|
$
|
4,236,366
|
$
|
4,173,076
|
$
|
4,118,509
|
$
|
4,094,218
|
||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||||||||||||||
|
(Dollars in Thousands, Except Per Share Amounts)
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
June 30,
|
|||||||||||||||
|
2012
|
2012
|
2011
|
2011
|
2011
|
||||||||||||||||
|
INTEREST INCOME
|
||||||||||||||||||||
|
Loans receivable:
|
||||||||||||||||||||
|
Taxable
|
$
|
36,652
|
$
|
35,848
|
$
|
36,497
|
$
|
37,024
|
$
|
37,457
|
||||||||||
|
Tax exempt
|
123
|
117
|
93
|
86
|
247
|
|||||||||||||||
|
Investment securities:
|
||||||||||||||||||||
|
Taxable
|
4,468
|
4,574
|
4,565
|
5,078
|
5,040
|
|||||||||||||||
|
Tax exempt
|
2,551
|
2,562
|
2,550
|
2,529
|
2,535
|
|||||||||||||||
|
Federal funds sold
|
1
|
|||||||||||||||||||
|
Deposits with financial institutions
|
28
|
25
|
54
|
45
|
100
|
|||||||||||||||
|
Federal Reserve and Federal Home Loan Bank stock
|
347
|
343
|
314
|
323
|
341
|
|||||||||||||||
|
Total Interest Income
|
44,169
|
43,469
|
44,073
|
45,085
|
45,721
|
|||||||||||||||
|
INTEREST EXPENSE
|
||||||||||||||||||||
|
Deposits
|
3,939
|
4,110
|
4,505
|
5,046
|
5,864
|
|||||||||||||||
|
Federal funds purchased
|
12
|
12
|
3
|
16
|
3
|
|||||||||||||||
|
Securities sold under repurchase agreements
|
197
|
295
|
363
|
384
|
386
|
|||||||||||||||
|
Federal Home Loan Bank advances
|
637
|
994
|
1,114
|
1,089
|
977
|
|||||||||||||||
|
Subordinated debentures, revolving credit lines and term loans
|
1,331
|
1,942
|
1,908
|
2,699
|
2,644
|
|||||||||||||||
|
Total Interest Expense
|
6,116
|
7,353
|
7,893
|
9,234
|
9,874
|
|||||||||||||||
|
NET INTEREST INCOME
|
38,053
|
36,116
|
36,180
|
35,851
|
35,847
|
|||||||||||||||
|
Provision for loan losses
|
4,545
|
4,875
|
5,855
|
5,556
|
5,625
|
|||||||||||||||
|
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
|
33,508
|
31,241
|
30,325
|
30,295
|
30,222
|
|||||||||||||||
|
OTHER INCOME
|
||||||||||||||||||||
|
Service charges on deposit accounts
|
2,893
|
2,819
|
3,027
|
3,169
|
2,997
|
|||||||||||||||
|
Fiduciary activities
|
1,938
|
1,983
|
1,804
|
1,881
|
1,929
|
|||||||||||||||
|
Other customer fees
|
3,150
|
2,586
|
2,572
|
2,583
|
2,634
|
|||||||||||||||
|
Commission income
|
1,485
|
1,667
|
1,220
|
1,528
|
1,024
|
|||||||||||||||
|
Earnings on cash surrender value of life insurance
|
662
|
1,378
|
803
|
644
|
571
|
|||||||||||||||
|
Net gains and fees on sales of loans
|
2,314
|
1,952
|
2,747
|
1,768
|
1,030
|
|||||||||||||||
|
Net realized gains on sales of available for sale securities
|
502
|
789
|
290
|
861
|
825
|
|||||||||||||||
|
Gain on FDIC modified whole bank transaction
|
9,124
|
|||||||||||||||||||
|
Other income
|
221
|
360
|
508
|
796
|
51
|
|||||||||||||||
|
Total Other Income
|
13,165
|
22,658
|
12,971
|
13,230
|
11,061
|
|||||||||||||||
|
OTHER EXPENSES
|
||||||||||||||||||||
|
Salaries and employee benefits
|
19,641
|
19,354
|
19,035
|
19,964
|
18,560
|
|||||||||||||||
|
Net occupancy
|
2,473
|
2,651
|
2,428
|
2,530
|
2,415
|
|||||||||||||||
|
Equipment
|
1,656
|
1,805
|
1,672
|
1,662
|
1,677
|
|||||||||||||||
|
Marketing
|
564
|
442
|
650
|
534
|
436
|
|||||||||||||||
|
Outside data processing fees
|
1,506
|
1,376
|
1,377
|
1,391
|
1,458
|
|||||||||||||||
|
Printing and office supplies
|
294
|
267
|
340
|
301
|
313
|
|||||||||||||||
|
Core deposit amortization
|
480
|
469
|
591
|
755
|
1,101
|
|||||||||||||||
|
FDIC assessments
|
862
|
1,117
|
775
|
1,201
|
1,451
|
|||||||||||||||
|
Other real estate owned and credit-related expenses
|
2,122
|
2,186
|
2,569
|
2,007
|
2,843
|
|||||||||||||||
|
Other expenses
|
4,582
|
4,361
|
3,999
|
3,877
|
4,145
|
|||||||||||||||
|
Total Other Expenses
|
34,180
|
34,028
|
33,436
|
34,222
|
34,399
|
|||||||||||||||
|
INCOME BEFORE INCOME TAX
|
12,493
|
19,871
|
9,860
|
9,303
|
6,884
|
|||||||||||||||
|
Income tax expense (benefit)
|
3,288
|
5,500
|
2,299
|
2,561
|
1,396
|
|||||||||||||||
|
NET INCOME
|
9,205
|
14,371
|
7,561
|
6,742
|
5,488
|
|||||||||||||||
|
Loss on CPP unamortized discount
|
(1,401
|
)
|
||||||||||||||||||
|
Loss on extinguishment of trust preferred securities
|
(10,857
|
)
|
||||||||||||||||||
|
Preferred stock dividends and discount accretion
|
(1,135
|
)
|
(1,135
|
)
|
(1,135
|
)
|
(868
|
)
|
(990
|
)
|
||||||||||
|
NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS
|
$
|
8,070
|
$
|
13,236
|
$
|
6,426
|
$
|
(6,384
|
)
|
$
|
4,498
|
|||||||||
|
PER SHARE:
|
||||||||||||||||||||
|
Basic Net Income (Loss) Available to Common Stockholders
|
$
|
0.28
|
$
|
0.46
|
$
|
0.24
|
$
|
(0.25
|
)
|
$
|
0.18
|
|||||||||
|
Diluted Net Income (Loss) Available to Common Stockholders
|
$
|
0.28
|
$
|
0.46
|
$
|
0.24
|
$
|
(0.25
|
)
|
$
|
0.18
|
|||||||||
|
Cash Dividends Paid
|
$
|
0.03
|
$
|
0.01
|
$
|
0.01
|
$
|
0.01
|
$
|
0.01
|
||||||||||
|
Average Diluted Shares Outstanding (in thousands)
|
28,815
|
28,755
|
28,700
|
26,367
|
25,783
|
|||||||||||||||
|
FINANCIAL RATIOS:
|
||||||||||||||||||||
|
Return on Average Assets
|
0.76
|
%
|
1.26
|
%
|
0.61
|
%
|
-0.62
|
%
|
0.43
|
%
|
||||||||||
|
Return on Average Stockholders' Equity
|
6.07
|
10.23
|
5.01
|
(5.33
|
)
|
3.87
|
||||||||||||||
|
Average Earning Assets to Average Assets
|
90.30
|
90.16
|
89.66
|
90.30
|
90.64
|
|||||||||||||||
|
Allowance for Loan Losses as % of Total Loans
|
2.49
|
2.50
|
2.60
|
2.68
|
2.83
|
|||||||||||||||
|
Net Charge Off's as % of Average Loans (Annualized)
|
0.68
|
0.78
|
1.18
|
1.41
|
1.37
|
|||||||||||||||
|
Average Stockholders' Equity to Average Assets
|
12.51
|
12.32
|
12.22
|
11.64
|
11.23
|
|||||||||||||||
|
Tax Equivalent Yield on Earning Assets
|
4.75
|
4.74
|
4.83
|
5.01
|
5.04
|
|||||||||||||||
|
Cost of Supporting Liabilities
|
0.64
|
0.78
|
0.84
|
0.99
|
1.05
|
|||||||||||||||
|
Net Interest Margin (FTE) on Earning Assets
|
4.11
|
3.96
|
3.99
|
4.02
|
3.99
|
|||||||||||||||
|
LOANS
|
||||||||||||||||||||
|
(Dollars in Thousands)
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
June 30,
|
|||||||||||||||
|
2012
|
2012
|
2011
|
2011
|
2011
|
||||||||||||||||
|
Commercial and industrial loans
|
$
|
552,353
|
$
|
546,304
|
$
|
532,523
|
$
|
518,848
|
$
|
529,742
|
||||||||||
|
Agricultural production financing and other loans to farmers
|
106,135
|
97,165
|
104,526
|
106,761
|
99,360
|
|||||||||||||||
|
Real estate loans:
|
||||||||||||||||||||
|
Construction
|
99,588
|
92,694
|
81,780
|
70,044
|
96,308
|
|||||||||||||||
|
Commercial and farm land
|
1,219,114
|
1,229,195
|
1,194,230
|
1,196,270
|
1,171,901
|
|||||||||||||||
|
Residential
|
480,917
|
498,354
|
481,493
|
495,954
|
495,256
|
|||||||||||||||
|
Home Equity
|
207,250
|
210,564
|
191,631
|
196,191
|
191,839
|
|||||||||||||||
|
Individuals' loans for household and other personal expenditures
|
83,933
|
78,711
|
84,172
|
90,810
|
94,123
|
|||||||||||||||
|
Lease financing receivables, net of unearned income
|
2,976
|
3,112
|
3,555
|
4,160
|
4,399
|
|||||||||||||||
|
Other loans
|
45,368
|
36,890
|
39,505
|
33,900
|
41,094
|
|||||||||||||||
|
Loans
|
2,797,634
|
2,792,989
|
2,713,415
|
2,712,938
|
2,724,022
|
|||||||||||||||
|
Allowance for loan losses
|
(70,143
|
)
|
(70,369
|
)
|
(70,898
|
)
|
(73,074
|
)
|
(77,133
|
)
|
||||||||||
|
NET LOANS
|
$
|
2,727,491
|
$
|
2,722,620
|
$
|
2,642,517
|
$
|
2,639,864
|
$
|
2,646,889
|
||||||||||
|
DEPOSITS
|
||||||||||||||||||||
|
(Dollars in Thousands)
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
June 30,
|
|||||||||||||||
|
2012
|
2012
|
2011
|
2011
|
2011
|
||||||||||||||||
|
Demand deposits
|
$
|
1,521,194
|
$
|
1,470,938
|
$
|
1,438,513
|
$
|
1,360,174
|
$
|
1,363,621
|
||||||||||
|
Savings deposits
|
822,299
|
801,935
|
757,166
|
712,545
|
750,337
|
|||||||||||||||
|
Certificates and other time deposits of $100,000 or more
|
261,156
|
269,796
|
264,787
|
278,115
|
292,613
|
|||||||||||||||
|
Other certificates and time deposits
|
546,182
|
566,934
|
551,247
|
570,380
|
597,330
|
|||||||||||||||
|
Brokered deposits
|
138,067
|
169,975
|
122,942
|
143,036
|
138,632
|
|||||||||||||||
|
TOTAL DEPOSITS
|
$
|
3,288,898
|
$
|
3,279,578
|
$
|
3,134,655
|
$
|
3,064,250
|
$
|
3,142,533
|
||||||||||