First Merchants Corporation Announces First Quarter 2021 Earnings per Share

MUNCIE, Ind., April 22, 2021 (GLOBE NEWSWIRE) -- First Merchants Corporation (NASDAQ - FRME) has reported first quarter 2021 net income of $49.5 million compared to $34.3 million during the same period in 2020. Earnings per share for the period totaled $.91 per share compared to the first quarter of 2020 result of $.62 per share, an increase of $.29, or 47 percent.

Total assets equaled $14.6 billion as of quarter-end and loans totaled $9.3 billion. The Corporation’s loan portfolio increased by $711 million, or 8.3 percent, during the past twelve months. The increase was primarily due to Paycheck Protection Program (“PPP”) loans which accounted for $742 million of the quarter-end loan balance. Investments increased $1 billion, or 37.2 percent, during the year and now total $3.7 billion. Total deposits equaled $12.0 billion as of quarter-end and increased by $2.1 billion, or 21.1 percent over the same period in 2020.

On January 1, 2021, the Corporation adopted the current expected credit losses (“CECL”) model for calculating the allowance for credit losses. The impact of the adoption was an increase to Allowance for Credit Losses – Loans of $74.1 million and the establishment of an Allowance for Credit Losses - Investments of $245,000. Net charge-offs totaled $3.6 million for the quarter and no provision expense was recorded. As a result, the quarter end Allowance for Credit Losses – Loans balance was $201.1 million, or 2.16% of total loans. Non-accrual loans totaled $57.9 million as of quarter-end.

Mark Hardwick, Chief Executive Officer, stated, “We have returned to the office and have reopened our lobbies to serve our customers in a more personal way. The vaccination progress and improved case numbers in our markets are cause for optimism. Our first quarter results were strong and I’m especially pleased to have produced a return on assets of 1.39 percent, return on tangible common equity of 15.87 percent and efficiency ratio of 50.23 percent. The current balance sheet and financial performance positions First Merchants to capitalize on future growth opportunities.”

Net-interest income totaling $100.4 million for the quarter, continued to grow with an increase of $6.6 million, or 7.0 percent compared to the first quarter of 2020. Net-interest margin on a tax equivalent basis, totaling 3.23 percent, declined by 23 basis points compared to the first quarter of 2020. Yield on earning assets for the first quarter totaled 3.52 percent and cost of supporting liabilities totaled 0.29 percent. Fair value accretion contributed less to margin as it accounted for 6 basis points in the first quarter of 2021, compared to 12 basis points in the first quarter of 2020. PPP loans contributed 13 basis points to margin during the first quarter of 2021 as unamortized SBA fees were recognized upon loan forgiveness.

Non-interest income totaled $24.1 million for the quarter, a $5.7 million decline from the first quarter of 2020. Customer-specific line items accounted for $2.8 million of the decrease driven by lower derivative hedge fees and the impact of the Durbin Amendment adoption on card payment fees. Additionally, gains on the sale of securities decreased by $2.8 million during the quarter. Non-interest expense totaled $66.1 million for the quarter and was stable compared to the 2020 first quarter expense total of $66.2 million.

The effective tax rate was 15.3 percent in the first quarter of 2021, compared to 9.2 percent in the first quarter of 2020. The CARES Act provided an opportunity to carry back net operating losses to pre-tax reform income tax rates in the first quarter of 2020. The result was a decline in income tax expense of $1.2 million and a lower-than-normal effective tax rate.

The loan-to-deposit ratio totals 78.0 percent and loan-to-asset ratio totals 63.7 percent. Additionally, the Corporation’s total risk-based capital ratio equaled 14.33 percent, the common equity tier 1 capital ratio equaled 11.99 percent, and the tangible common equity ratio totaled 8.78 percent. These ratios reflect the Corporation’s strong liquidity and capital positions.

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 22, 2021.

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 22, 2021. 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 10153171.

In order to view the web cast and presentation slides, please go to http://services.choruscall.com/links/frme210422.html during the time of the call. A replay of the web cast will be available until April 22, 2022.

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,
 2021 2020
ASSETS   
Cash and cash equivalents$187,901  $127,731 
Interest-bearing deposits392,806  132,944 
Investment securities, net of allowance for credit losses of $245,000 and $03,700,857  2,697,954 
Loans held for sale4,430  5,039 
Loans9,318,228  8,606,849 
Less: Allowance for credit losses - loans(201,082) (99,454)
Net loans9,117,146  8,507,395 
Premises and equipment109,432  114,045 
Federal Home Loan Bank stock28,736  28,736 
Interest receivable54,662  47,489 
Goodwill and other intangibles571,536  577,366 
Cash surrender value of life insurance293,766  289,574 
Other real estate owned604  7,972 
Tax asset, deferred and receivable40,163  9,497 
Other assets127,027  147,776 
TOTAL ASSETS$14,629,066  $12,693,518 
LIABILITIES   
Deposits:   
Noninterest-bearing$2,494,891  $1,688,205 
Interest-bearing9,456,889  8,182,279 
Total Deposits11,951,780  9,870,484 
Borrowings:   
Federal funds purchased  47,000 
Securities sold under repurchase agreements185,721  183,317 
Federal Home Loan Bank advances359,337  480,995 
Subordinated debentures and other borrowings118,439  128,741 
Total Borrowings663,497  840,053 
Interest payable4,020  7,746 
Other liabilities203,913  197,275 
Total Liabilities12,823,210  10,915,558 
STOCKHOLDERS' EQUITY   
Cumulative Preferred Stock, $1,000 par value, $1,000 liquidation value:   
Authorized -- 600 shares   
Issued and outstanding - 125 shares125  125 
Common Stock, $.125 stated value:   
Authorized -- 100,000,000 shares   
Issued and outstanding - 53,953,723 and 53,754,137 shares6,744  6,719 
Additional paid-in capital1,007,300  1,000,942 
Retained earnings755,877  716,518 
Accumulated other comprehensive income35,810  53,656 
Total Stockholders' Equity1,805,856  1,777,960 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$14,629,066  $12,693,518 



CONSOLIDATED STATEMENTS OF INCOMEThree Months Ended
(Dollars In Thousands, Except Per Share Amounts)March 31,
 2021 2020
INTEREST INCOME   
Loans receivable:   
Taxable$85,105  $96,652 
Tax-exempt5,339  5,315 
Investment securities:   
Taxable6,695  7,631 
Tax-exempt12,385  9,335 
Deposits with financial institutions114  575 
Federal Home Loan Bank stock178  299 
Total Interest Income109,816  119,807 
INTEREST EXPENSE   
Deposits6,200  21,748 
Federal funds purchased2  111 
Securities sold under repurchase agreements87  352 
Federal Home Loan Bank advances1,442  1,774 
Subordinated debentures and other borrowings1,657  1,945 
Total Interest Expense9,388  25,930 
NET INTEREST INCOME100,428  93,877 
Provision for credit losses - loans  19,752 
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES100,428  74,125 
OTHER INCOME   
Service charges on deposit accounts5,264  5,970 
Fiduciary and wealth management fees6,422  5,985 
Card payment fees4,367  5,907 
Net gains and fees on sales of loans3,986  3,363 
Derivative hedge fees317  1,939 
Other customer fees368  398 
Earnings on cash surrender value of life insurance1,336  1,360 
Net realized gains on sales of available for sale securities1,799  4,612 
Other income232  265 
Total Other Income24,091  29,799 
OTHER EXPENSES   
Salaries and employee benefits38,811  39,243 
Net occupancy6,491  5,801 
Equipment5,030  4,344 
Marketing1,124  1,443 
Outside data processing fees4,244  4,199 
Printing and office supplies283  387 
Intangible asset amortization1,357  1,514 
FDIC assessments1,368  1,523 
Other real estate owned and foreclosure expenses734  505 
Professional and other outside services2,543  2,258 
Other expenses4,113  4,954 
Total Other Expenses66,098  66,171 
INCOME BEFORE INCOME TAX58,421  37,753 
Income tax expense8,952  3,490 
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$49,469  $34,263 
    
Per Share Data:   
Basic Net Income Available to Common Stockholders$0.92  $0.63 
Diluted Net Income Available to Common Stockholders$0.91  $0.62 
Cash Dividends Paid$0.26  $0.26 
Average Diluted Shares Outstanding (in thousands)54,134  54,918 


FINANCIAL HIGHLIGHTS   
(Dollars in thousands)Three Months Ended
 March 31,
 2021 2020
NET CHARGE-OFFS$3,621  $582 
    
AVERAGE BALANCES:   
Total Assets$14,244,739  $12,573,238 
Total Loans9,236,421  8,526,571 
Total Earning Assets13,023,318  11,292,430 
Total Deposits11,567,918  9,886,273 
Total Stockholders' Equity1,840,432  1,816,418 
    
FINANCIAL RATIOS:   
Return on Average Assets1.39% 1.09%
Return on Average Stockholders' Equity10.75  7.55 
Return on Average Common Stockholders' Equity10.75  7.55 
Average Earning Assets to Average Assets91.43  89.81 
Allowance for Credit Losses - Loans as % of Total Loans2.16  1.15 
Net Charge-offs as % of Average Loans (Annualized)0.16  0.03 
Average Stockholders' Equity to Average Assets12.92  14.45 
Tax Equivalent Yield on Average Earning Assets3.52  4.38 
Interest Expense/Average Earning Assets0.29  0.92 
Net Interest Margin (FTE) on Average Earning Assets3.23  3.46 
Efficiency Ratio50.23  52.17 
Tangible Common Book Value Per Share$22.98  $22.46 


NON-PERFORMING ASSETS         
(Dollars In Thousands)March 31, December 31, September 30, June 30, March 31,
 2021 2020 2020 2020 2020
Non-Accrual Loans$57,923  $61,471  $56,739  $50,102  $15,649 
Renegotiated Loans655  3,240  2,677  1,086  665 
Non-Performing Loans (NPL)58,578  64,711  59,416  51,188  16,314 
Other Real Estate Owned and Repossessions604  940  6,984  7,409  8,017 
Non-Performing Assets (NPA)59,182  65,651  66,400  58,597  24,331 
90+ Days Delinquent1,093  746  1,330  4,981  312 
NPAs & 90 Day Delinquent$60,275  $66,397  $67,730  $63,578  $24,643 
          
Allowance for Credit Losses - Loans$201,082  $130,648  $126,726  $121,119  $99,454 
Quarterly Net Charge-offs3,621  560  6,937  230  582 
NPAs / Actual Assets %0.40% 0.47% 0.48% 0.42% 0.19%
NPAs & 90 Day / Actual Assets %0.41% 0.47% 0.49% 0.46% 0.19%
NPAs / Actual Loans and OREO %0.63% 0.71% 0.72% 0.63% 0.28%
Allowance for Credit Losses - Loans / Actual Loans (%)2.16% 1.41% 1.37% 1.30% 1.15%
Net Charge-offs as % of Average Loans (Annualized)0.16% 0.02% 0.30% 0.01% 0.03%


CONSOLIDATED BALANCE SHEETS         
(Dollars In Thousands)March 31, December 31, September 30, June 30, March 31,
 2021 2020 2020 2020 2020
ASSETS         
Cash and cash equivalents$187,901  $192,896  $164,632  $229,759  $127,731 
Interest-bearing deposits392,806  392,305  273,936  380,021  132,944 
Investment securities, net of allowance for credit losses3,700,857  3,146,787  2,933,286  2,789,379  2,697,954 
Loans held for sale4,430  3,966  3,183  901  5,039 
Loans9,318,228  9,243,174  9,243,833  9,298,541  8,606,849 
Less: Allowance for credit losses - loans(201,082) (130,648) (126,726) (121,119) (99,454)
Net loans9,117,146  9,112,526  9,117,107  9,177,422  8,507,395 
Premises and equipment109,432  111,062  112,959  112,548  114,045 
Federal Home Loan Bank stock28,736  28,736  28,736  28,736  28,736 
Interest receivable54,662  53,948  52,992  57,063  47,489 
Goodwill and other intangibles571,536  572,893  574,369  575,855  577,366 
Cash surrender value of life insurance293,766  292,745  291,543  290,715  289,574 
Other real estate owned604  940  6,942  7,367  7,972 
Tax asset, deferred and receivable40,163  12,340  21,762  13,126  9,497 
Other assets127,027  146,066  155,903  156,486  147,776 
TOTAL ASSETS$14,629,066  $14,067,210  $13,737,350  $13,819,378  $12,693,518 
LIABILITIES         
Deposits:         
Noninterest-bearing$2,494,891  $2,298,138  $2,187,607  $2,260,351  $1,688,205 
Interest-bearing9,456,889  9,063,472  8,718,546  8,705,637  8,182,279 
Total Deposits11,951,780  11,361,610  10,906,153  10,965,988  9,870,484 
Borrowings:         
Federal funds purchased    80,000    47,000 
Securities sold under repurchase agreements185,721  177,102  187,732  181,150  183,317 
Federal Home Loan Bank advances359,337  389,430  399,522  400,817  480,995 
Subordinated debentures and other borrowings118,439  118,380  118,320  285,197  128,741 
Total Borrowings663,497  684,912  785,574  867,164  840,053 
Interest payable4,020  3,287  5,038  5,587  7,746 
Other liabilities203,913  141,756  206,929  171,544  197,275 
Total Liabilities12,823,210  12,191,565  11,903,694  12,010,283  10,915,558 
STOCKHOLDERS' EQUITY         
Cumulative Preferred Stock, $1,000 par value, $1,000 liquidation value:         
Authorized -- 600 shares         
Issued and outstanding125  125  125  125  125 
Common Stock, $.125 stated value:         
Authorized -- 100,000,000 shares         
Issued and outstanding6,744  6,740  6,736  6,724  6,719 
Additional paid-in capital1,007,300  1,005,366  1,003,777  1,002,962  1,000,942 
Retained earnings755,877  788,578  757,550  735,439  716,518 
Accumulated other comprehensive income35,810  74,836  65,468  63,845  53,656 
Total Stockholders' Equity1,805,856  1,875,645  1,833,656  1,809,095  1,777,960 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$14,629,066  $14,067,210  $13,737,350  $13,819,378  $12,693,518 
          


CONSOLIDATED STATEMENTS OF INCOME         
(Dollars In Thousands, Except Per Share Amounts)March 31, December 31, September 30, June 30, March 31,
 2021 2020 2020 2020 2020
INTEREST INCOME         
Loans receivable:         
Taxable$85,105  $90,138  $84,162  $87,312  $96,652 
Tax-exempt5,339  5,414  5,395  5,359  5,315 
Investment securities:         
Taxable6,695  5,263  5,399  6,147  7,631 
Tax-exempt12,385  12,056  10,931  10,019  9,335 
Deposits with financial institutions114  139  90  134  575 
Federal Home Loan Bank stock178  214  248  281  299 
Total Interest Income109,816  113,224  106,225  109,252  119,807 
INTEREST EXPENSE         
Deposits6,200  7,509  9,776  12,707  21,748 
Federal funds purchased2  2  5  2  111 
Securities sold under repurchase agreements87  77  83  92  352 
Federal Home Loan Bank advances1,442  1,656  1,749  1,794  1,774 
Subordinated debentures and other borrowings1,657  1,669  1,691  1,639  1,945 
Total Interest Expense9,388  10,913  13,304  16,234  25,930 
NET INTEREST INCOME100,428  102,311  92,921  93,018  93,877 
Provision for credit losses - loans  4,482  12,544  21,895  19,752 
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES100,428  97,829  80,377  71,123  74,125 
OTHER INCOME         
Service charges on deposit accounts5,264  5,508  5,209  4,312  5,970 
Fiduciary and wealth management fees6,422  6,251  5,910  5,601  5,985 
Card payment fees4,367  3,502  3,996  6,097  5,907 
Net gains and fees on sales of loans3,986  5,393  5,841  3,674  3,363 
Derivative hedge fees317  2,281  1,715  1,042  1,939 
Other customer fees368  394  372  333  398 
Earnings on cash surrender value of life insurance1,336  1,283  1,171  1,326  1,360 
Net realized gains on sales of available for sale securities1,799  2,398  1,817  3,068  4,612 
Other income232  473  132  1,028  265 
Total Other Income24,091  27,483  26,163  26,481  29,799 
OTHER EXPENSES         
Salaries and employee benefits38,811  41,809  39,187  35,698  39,243 
Net occupancy6,491  9,653  5,855  5,447  5,801 
Equipment5,030  5,555  4,956  4,489  4,344 
Marketing1,124  1,763  1,311  2,092  1,443 
Outside data processing fees4,244  3,839  3,776  2,618  4,199 
Printing and office supplies283  307  331  279  387 
Intangible asset amortization1,357  1,476  1,486  1,511  1,514 
FDIC assessments1,368  1,560  1,249  1,472  1,523 
Other real estate owned and foreclosure expenses734  (1,576) 717  684  505 
Professional and other outside services2,543  2,836  2,254  1,553  2,258 
Other expenses4,113  5,314  3,587  4,146  4,954 
Total Other Expenses66,098  72,536  64,709  59,989  66,171 
INCOME BEFORE INCOME TAX58,421  52,776  41,831  37,615  37,753 
Income tax expense8,952  7,641  5,621  4,623  3,490 
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$49,469  $45,135  $36,210  $32,992  $34,263 
          
Per Share Data:         
Basic Net Income Available to Common Stockholders$0.92  $0.83  $0.67  $0.62  $0.63 
Diluted Net Income Available to Common Stockholders$0.91  $0.83  $0.67  $0.62  $0.62 
Cash Dividends Paid$0.26  $0.26  $0.26  $0.26  $0.26 
Average Diluted Shares Outstanding (in thousands)54,134  54,050  53,971  53,943  54,918 
FINANCIAL RATIOS:         
Return on Average Assets1.39% 1.29% 1.06% 0.97% 1.09%
Return on Average Stockholders' Equity10.75  9.72  7.91  7.35  7.55 
Return on Average Common Stockholders' Equity10.75  9.72  7.91  7.35  7.55 
Average Earning Assets to Average Assets91.43  90.66  90.34  89.25  89.81 
Allowance for Credit Losses - Loans as % of Total Loans2.16  1.41  1.37  1.30  1.15 
Net Charge-offs as % of Average Loans (Annualized)0.16  0.02  0.30  0.01  0.03 
Average Stockholders' Equity to Average Assets12.92  13.29  13.41  13.15  14.45 
Tax Equivalent Yield on Average Earning Assets3.52  3.72  3.58  3.72  4.38 
Interest Expense/Average Earning Assets0.29  0.34  0.43  0.53  0.92 
Net Interest Margin (FTE) on Average Earning Assets3.23  3.38  3.15  3.19  3.46 
Efficiency Ratio50.23  55.01  51.40  47.95  52.17 
Tangible Common Book Value Per Share$22.98  $24.27  $23.48  $23.04  $22.46 



LOANS         
(Dollars In Thousands)March 31, December 31, September 30, June 30, March 31,
 2021 2020 2020 2020 2020
Commercial and industrial loans$2,876,212   $2,776,699   $2,875,331   $2,898,329   $2,199,226  
Agricultural land, production and other loans to farmers245,631   281,884   301,192   316,815   315,950  
Real estate loans:         
Construction541,224   484,723   622,084   640,560   643,674  
Commercial real estate, non-owner occupied2,178,832   2,220,949   2,098,589   2,097,767   2,118,148  
Commercial real estate, owner occupied950,038   958,501   931,815   919,254   921,491  
Residential1,239,925   1,234,741   1,146,406   1,145,187   1,121,556  
Home equity482,229   508,259   527,458   532,314   570,398  
Individuals' loans for household and other personal expenditures126,387   129,479   125,411   123,611   129,765  
Public finance and other commercial loans677,750   647,939   615,547   624,704   586,641  
Loans9,318,228   9,243,174   9,243,833   9,298,541   8,606,849  
Allowance for credit losses - loans(201,082)  (130,648)  (126,726)  (121,119)  (99,454) 
NET LOANS$9,117,146   $9,112,526   $9,117,107   $9,177,422   $8,507,395  


DEPOSITS         
(Dollars In Thousands)March 31, December 31, September 30, June 30, March 31,
 2021 2020 2020 2020 2020
Demand deposits$7,245,850  $6,821,152  $6,279,554  $6,288,360  $5,293,200 
Savings deposits3,857,624  3,661,713  3,518,286  3,278,156  2,962,821 
Certificates and other time deposits of $100,000 or more332,745  346,194  467,610  607,474  694,062 
Other certificates and time deposits449,655  459,168  542,919  669,119  717,723 
Brokered deposits65,906  73,383  97,784  122,879  202,678 
TOTAL DEPOSITS$11,951,780  $11,361,610  $10,906,153  $10,965,988  $9,870,484 


CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS      
(Dollars in Thousands)           
 For the Three Months Ended
 March 31, 2021 March 31, 2020
 Average Balance Interest
 Income /
Expense
 Average
Rate
 Average Balance Interest
 Income /
Expense
 Average
Rate
Assets:           
Interest-bearing deposits$441,254  $114  0.10% $159,859  $575  1.44%
Federal Home Loan Bank stock28,736  178  2.48  28,737  299  4.16 
Investment Securities: (1)           
Taxable1,494,008  6,695  1.79  1,368,546  7,631  2.23 
Tax-Exempt (2)1,822,899  15,677  3.44  1,208,717  11,816  3.91 
Total Investment Securities3,316,907  22,372  2.70  2,577,263  19,447  3.02 
Loans held for sale16,139  156  3.87  17,217  193  4.48 
Loans: (3)           
Commercial6,876,818  69,174  4.02  6,235,336  76,952  4.94 
Real Estate Mortgage975,262  9,286  3.81  870,654  10,402  4.78 
Installment674,307  6,489  3.85  759,614  9,105  4.79 
Tax-Exempt (2)693,895  6,758  3.90  643,750  6,728  4.18 
Total Loans9,236,421  91,863  3.98  8,526,571  103,380  4.85 
Total Earning Assets13,023,318  114,527  3.52% 11,292,430  123,701  4.38%
Net unrealized gain (loss) on securities available for sale55,658      48,656     
Allowance for credit losses(204,353)     (81,160)    
Cash and cash equivalents165,774      159,757     
Premises and equipment110,992      113,812     
Other assets1,093,350      1,039,743     
Total Assets$14,244,739      $12,573,238     
Liabilities:           
Interest-bearing deposits:           
Interest-bearing deposits$4,616,988  $3,709  0.32% $3,589,240  $8,276  0.92%
Money market deposits2,086,322  835  0.16  1,535,844  3,783  0.99 
Savings deposits1,660,528  476  0.11  1,425,054  1,827  0.51 
Certificates and other time deposits859,334  1,180  0.55  1,666,642  7,862  1.89 
Total Interest-bearing Deposits9,223,172  6,200  0.27  8,216,780  21,748  1.06 
Borrowings675,117  3,188  1.89  748,185  4,182  2.24 
Total Interest-bearing Liabilities9,898,289  9,388  0.38  8,964,965  25,930  1.16 
Noninterest-bearing deposits2,344,746      1,669,493     
Other liabilities161,272      122,362     
Total Liabilities12,404,307      10,756,820     
Stockholders' Equity1,840,432      1,816,418     
Total Liabilities and Stockholders' Equity$14,244,739  9,388    $12,573,238  25,930   
  Net Interest Income (FTE)  $105,139      $97,771   
  Net Interest Spread (FTE) (4)    3.14%     3.22%
            
Net Interest Margin (FTE):           
Interest Income (FTE) / Average Earning Assets    3.52%     4.38%
Interest Expense / Average Earning Assets    0.29%     0.92%
  Net Interest Margin (FTE) (5)    3.23%     3.46%
            
(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. Annualized amounts are computed using a 30/360 day basis.
(2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2021 and 2020. These totals equal $4,711 and $3,894 for the three months ended March 31, 2021 and 2020, 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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