First Merchants Corporation (NASDAQ: FRME) has reported full year 2012
record net income available to common shareholders of $40.6 million
compared to $9.0 million earned in 2011.
Michael C. Rechin, President and Chief Executive Officer, stated, "Our
2012 results represent a return to high performance banking. Our Board
of Directors, management team and dedicated employees are very pleased
to have established record high net income results for our shareholders.
Beyond the level of net income, our highlights for 2012 include a
successful closing of an immediately accretive in-market acquisition, an
increase in the rate of organic loan growth and an increase in the level
of our common dividend." Rechin also stated, "our team is encouraged by
the momentum we take into 2013 despite the challenging low interest rate
Year-to-date earnings per share totaled $1.41, a $1.07 per share
increase over the prior year total of $.34 per share. Within the $1.41
earnings per share, $.21 is related to the one-time gain on the
Corporation's FDIC purchase and assumption agreement with SCB Bank in
Shelbyville, Indiana, during the first quarter of 2012. The balance of
our 2012 results represent increased levels of earnings from our
relationship-driven banking model that produced higher levels of revenue
from multiple income sources.
Fourth quarter 2012 earnings per share of $.32 compared to $.24 per
share during the same period in 2011. Net income available to common
shareholders totaled $9.2 million for the quarter, a $2.7 million
increase over the fourth quarter of 2011.
Total assets equaled $4.3 billion, as loans and investments totaled $2.9
billion and $874 million, respectively. Loans increased for the fifth
consecutive quarter due to the addition of calling officers and economic
improvements in our marketplace. The Corporation's loan-to-deposit ratio
and loan-to-asset ratio remained steady at 87 percent and 67 percent,
Net-interest income totaled $38.3 million for the fourth quarter of 2012
and net-interest margin remained strong totaling 4.10 percent as yields
on earning assets totaled 4.58 percent and the cost of supporting
liabilities totaled .48 percent. Discount accretion resulting from the
SCB transaction added $1.3 million, or 13 basis points, to net-interest
income and net-interest margin for the fourth quarter of 2012. YTD
net-interest income totaled $152.3 million, an increase of $9.0 million
Non-interest income totaled $14.2 million for the fourth quarter of 2012
and $64.3 million year-to-date. After normalizing for bond gains and the
first quarter 2012 FDIC gain, non-interest income for 2012 improved by
$5.7 million, or 12 percent over 2011. Gains from the sale of mortgage
loans accounted for $3.2 million of the increase as our investment in
mortgage origination and fulfillment maximized the advantageous mortgage
rate environment. Total non-interest expenses of $137.1 million
increased by $1.2 million, or less than 1 percent, during 2012.
Provision expense totaled $4.5 million for the fourth quarter 2012 and
$18.5 million year-to-date, compared to $5.9 million and $22.6 million
in 2011. Net charge-offs were $4.6 million for the fourth quarter of
2012 and $20.1 million year-to-date, compared to $8.0 million and $34.7
million in 2011. The allowance for loan losses is $69.4 million, or 2.37
percent of total loans and 130 percent of non-accrual loans, the highest
coverage ratio since 2006.
As of December 31, 2012, the Corporation's total risk-based capital
equaled 16.34 percent, Tier 1 common risk-based capital equaled 9.62
percent, and tangible common equity ratio totaled 7.55 percent. As of
December 31, 2011 the Corporation's total risk-based capital equaled
16.54 percent, Tier 1 common risk-based capital equaled 8.83 percent,
and tangible common equity ratio totaled 6.84 percent.
First Merchants Corporation will conduct a fourth quarter earnings
conference call and web cast at 2:30 p.m. (ET) on Thursday, January 24,
To participate, dial (Toll Free) 888-317-6016 and reference First
Merchants Corporation's fourth quarter earnings release. International
callers please call +1 412-317-6016. A replay of the call will be
available until January 24, 2014. 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 10023446.
In order to view the web cast and presentation slides, please go to http://services.choruscall.com/links/frme130124.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
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).
Per Share Data:
Loan Loss Reserve
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