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First Merchants Corporation Announces First Quarter 2022 Earnings Per Share

Tuesday, April 26, 2022

MUNCIE, Ind., April 26, 2022 (GLOBE NEWSWIRE) -- First Merchants Corporation (NASDAQ - FRME)

First Quarter 2022 Highlights:

  • Net income was $48.6 million and diluted earnings per share totaled $.91, compared to $49.5 million and $.91 in the first quarter of 2021, and $47.7 million and $.89 in the fourth quarter of 2021.
  • Diluted earnings per share excluding income on Paycheck Protection Program (“PPP”) loans totaled $.88 for the first quarter of 2022 compared to $.78 in the first quarter of 2021 and $.84 in the fourth quarter of 2021.1
  • Total loans, excluding PPP loans, grew $165 million or 7.2% on a linked quarter basis
  • Total deposits grew $173.4 million or 5.4% on a linked quarter basis
  • Non-accrual loans totaled $42.7 million compared to $43.1 million on a linked quarter basis
  • Net interest income totaled $102.3 million, an increase of $1.0 million on a linked quarter basis
  • Completed legal closing on the acquisition of Level One Bancorp, LLC on April 1, 2022

Mark Hardwick, Chief Executive Officer, stated, “The Bank’s loan, deposit and earnings growth were in line with expectations and my colleagues are focused on delivering our aspirational 2022 plan. The completion of our merger with Level One on April 1st is a milestone in First Merchants history that will propel our Bank into the future. I am proud of our new teammates and the professional winning attitude they exude.”

First Quarter Financial Results:

First Merchants Corporation (the “Corporation) has reported first quarter 2022 net income of $48.6 million compared to $49.5 million during the same period in 2021. Earnings per share for the period totaled $.91 per share compared to the first quarter of 2021 result of $.91 per share.

Total assets equaled $15.5 billion as of March 31, 2022 and loans totaled $9.4 billion. The Corporation experienced organic loan growth of $730.6 million, or 8.5 percent, during the past twelve months. This was offset by the forgiveness of Paycheck Protection Program (“PPP”) loans of $693.1 million, resulting in net loan growth of $37.5 million. PPP loans accounted for $48.7 million of the period end loan portfolio balance. Investments increased $788.4 million, or 21.3 percent, during the year and now total $4.5 billion. Total deposits equaled $12.9 billion as of quarter-end and increased by $954.2 million, or 8.0 percent over the same period in 2021.

The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $196.0 million as of quarter-end, or 2.09 percent of total loans. Net loan recoveries for the quarter totaled $0.6 million and no provision expense was recorded during the quarter or during the last twelve months. Non-performing assets to total assets were 0.32% for the first quarter of 2022, a decrease of eight basis points compared to 0.40% in the first quarter of 2021.

Net-interest income totaling $102.3 million for the quarter, continued to grow with an increase of $1.0 million, or 4.0 percent, over prior quarter and an increase of $1.9 million, or 1.8 percent compared to the first quarter of 2021. Stated net-interest margin on a tax equivalent basis, totaling 3.03 percent, declined by one basis point compared to the fourth quarter of 2021 and twenty basis points compared to the first quarter of 2021. Net-interest margin excluding the impact of fair value accretion and PPP loans totaled 2.97%, an increase of five basis points compared to 2.92% for the fourth quarter of 2021 and a decline of seven basis points from the first quarter of 2021. During the quarter, net-interest margin expanded nine basis points from growth in the loan and investment portfolios, higher investment portfolio yield and lower funding costs, offset by a decline of four basis points from the impact of a lower day count in the quarter.

Non-interest income, totaling $25.9 million for the quarter, was stable compared to the fourth quarter of 2021 and increased $1.8 million from the first quarter of 2021. Customer-specific line items accounted for $2.3 million of the increase over the first quarter of 2021 driven by higher service charges on deposits, fiduciary and wealth management fees and card payment fees. This was offset by a decline on gains on the sale of loans of $1.8 million driven by lower origination volume.

Non-interest expense totaled $72.3 million for the quarter, a decline of $0.1 million from the fourth quarter of 2021, and an increase of $6.3 million or 9.4% over the first quarter of 2021. The increase over the first quarter of 2021 was primarily due to higher salaries and employee benefits as well as higher FDIC assessments.

The Corporation’s loan to deposit ratio totals 73 percent and loan to asset ratio totals 61 percent. Additionally, the Corporation’s total risk-based capital ratio equaled 13.85 percent, common equity tier 1 capital ratio equaled 11.63 percent, and the tangible common equity ratio totaled 8.31 percent. These ratios continue to reflect the Corporation’s strong liquidity and capital positions.

1 See “Non-GAAP Financial Information” for reconciliation

CONFERENCE CALL

First Merchants Corporation will conduct a first quarter earnings conference call and web cast at 10:00 a.m. (ET) on Tuesday, April 26, 2022.

To participate, dial (Toll Free) 877-806-2932 and reference Conference ID 6838926. International callers please call +1 478-219-0639.

In order to view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/vucpzk7j) during the time of the call. A replay of the webcast will be available until April 26, 2023.

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 and Level One Bank (as divisions 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,
2022 2021
ASSETS
Cash and due from banks $ 148,277 $ 187,901
Interest-bearing deposits 395,262 392,806
Investment securities, net of allowance for credit losses of $245,000 and $245,000 4,489,263 3,700,857
Loans held for sale 3,938 4,430
Loans 9,356,241 9,318,228
Less: Allowance for credit losses - loans (195,984 ) (201,082 )
Net loans 9,160,257 9,117,146
Premises and equipment 105,883 109,432
Federal Home Loan Bank stock 26,422 28,736
Interest receivable 56,081 54,662
Goodwill and other intangibles 569,494 571,536
Cash surrender value of life insurance 291,881 293,766
Other real estate owned 6,271 604
Tax asset, deferred and receivable 73,422 40,163
Other assets 138,807 127,027
TOTAL ASSETS $ 15,465,258 $ 14,629,066
LIABILITIES
Deposits:
Noninterest-bearing $ 2,745,235 $ 2,494,891
Interest-bearing 10,160,718 9,456,889
Total Deposits 12,905,953 11,951,780
Borrowings:
Securities sold under repurchase agreements 169,697 185,721
Federal Home Loan Bank advances 308,960 359,337
Subordinated debentures and other borrowings 118,677 118,439
Total Borrowings 597,334 663,497
Interest payable 3,589 4,020
Other liabilities 150,749 203,913
Total Liabilities 13,657,625 12,823,210
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 -- 100,000,000 shares
Issued and outstanding - 53,424,823 and 53,953,723 shares 6,678 6,744
Additional paid-in capital 987,404 1,007,300
Retained earnings 897,818 755,877
Accumulated other comprehensive income (84,392 ) 35,810
Total Stockholders' Equity 1,807,633 1,805,856
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 15,465,258 $ 14,629,066

 

CONSOLIDATED STATEMENTS OF INCOME Three Months Ended
(Dollars In Thousands, Except Per Share Amounts) March 31,
2022 2021
INTEREST INCOME
Loans receivable:
Taxable $ 79,075 $ 85,105
Tax-exempt 5,704 5,339
Investment securities:
Taxable 8,510 6,695
Tax-exempt 15,875 12,385
Deposits with financial institutions 230 114
Federal Home Loan Bank stock 146 178
Total Interest Income 109,540 109,816
INTEREST EXPENSE
Deposits 4,294 6,200
Federal funds purchased 2
Securities sold under repurchase agreements 89 87
Federal Home Loan Bank advances 1,218 1,442
Subordinated debentures and other borrowings 1,659 1,657
Total Interest Expense 7,260 9,388
NET INTEREST INCOME 102,280 100,428
Provision for credit losses - loans
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 102,280 100,428
OTHER INCOME
Service charges on deposit accounts 6,419 5,264
Fiduciary and wealth management fees 7,332 6,422
Card payment fees 5,723 4,367
Net gains and fees on sales of loans 2,199 3,986
Derivative hedge fees 918 317
Other customer fees 410 368
Earnings on cash surrender value of life insurance 1,696 1,336
Net realized gains on sales of available for sale securities 566 1,799
Other income 634 232
Total Other Income 25,897 24,091
OTHER EXPENSES
Salaries and employee benefits 42,519 38,811
Net occupancy 6,187 6,491
Equipment 5,080 5,030
Marketing 736 1,124
Outside data processing fees 4,363 4,244
Printing and office supplies 345 283
Intangible asset amortization 1,366 1,357
FDIC assessments 2,192 1,368
Other real estate owned and foreclosure expenses 564 734
Professional and other outside services 2,953 2,543
Other expenses 6,020 4,113
Total Other Expenses 72,325 66,098
INCOME BEFORE INCOME TAX 55,852 58,421
Income tax expense 7,266 8,952
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 48,586 $ 49,469
Per Share Data:
Basic Net Income Available to Common Stockholders $ 0.91 $ 0.92
Diluted Net Income Available to Common Stockholders $ 0.91 $ 0.91
Cash Dividends Paid $ 0.29 $ 0.26
Average Diluted Shares Outstanding (in thousands) 53,616 54,134

 

FINANCIAL HIGHLIGHTS
(Dollars in thousands) Three Months Ended
March 31,
2022 2021
NET CHARGE-OFFS (RECOVERIES) $ (587 ) $ 3,621
AVERAGE BALANCES:
Total Assets $ 15,464,605 $ 14,244,739
Total Loans 9,255,928 9,236,421
Total Earning Assets 14,262,777 13,023,318
Total Deposits 12,817,690 11,567,918
Total Stockholders' Equity 1,891,223 1,840,432
FINANCIAL RATIOS:
Return on Average Assets 1.26 % 1.39 %
Return on Average Stockholders' Equity 10.28 10.75
Return on Average Common Stockholders' Equity 10.28 10.75
Average Earning Assets to Average Assets 92.23 91.43
Allowance for Credit Losses - Loans as % of Total Loans 2.09 2.16
Net Charge-offs as % of Average Loans (Annualized) (0.03 ) 0.16
Average Stockholders' Equity to Average Assets 12.23 12.92
Tax Equivalent Yield on Average Earning Assets 3.23 3.52
Interest Expense/Average Earning Assets 0.20 0.29
Net Interest Margin (FTE) on Average Earning Assets 3.03 3.23
Efficiency Ratio 52.79 50.23
Tangible Common Book Value Per Share $ 23.26 $ 22.98

 

NON-PERFORMING ASSETS
(Dollars In Thousands) March 31, December 31, September 30, June 30, March 31,
2022 2021 2021 2021 2021
Non-Accrual Loans $ 42,698 $ 43,062 $ 51,502 $ 57,556 $ 57,923
Renegotiated Loans 141 329 439 629 655
Non-Performing Loans (NPL) 42,839 43,391 51,941 58,185 58,578
Other Real Estate Owned and Repossessions 6,271 558 698 601 604
Non-Performing Assets (NPA) 49,110 43,949 52,639 58,786 59,182
90+ Days Delinquent 2,085 963 157 183 1,093
NPAs & 90 Day Delinquent $ 51,195 $ 44,912 $ 52,796 $ 58,969 $ 60,275
Allowance for Credit Losses - Loans $ 195,984 $ 195,397 $ 199,972 $ 199,775 $ 201,082
Quarterly Net Charge-offs (Recoveries) (587 ) 4,575 (197 ) 1,307 3,621
NPAs / Actual Assets % 0.32 % 0.28 % 0.35 % 0.39 % 0.40 %
NPAs & 90 Day / Actual Assets % 0.33 % 0.29 % 0.35 % 0.40 % 0.41 %
NPAs / Actual Loans and OREO % 0.52 % 0.47 % 0.58 % 0.64 % 0.63 %
Allowance for Credit Losses - Loans / Actual Loans (%) 2.09 % 2.11 % 2.21 % 2.19 % 2.16 %
Net Charge-offs as % of Average Loans (Annualized) (0.03 )% 0.20 % (0.01 )% 0.06 % 0.16 %

 

CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands) March 31, December 31, September 30, June 30, March 31,
2022 2021 2021 2021 2021
ASSETS
Cash and due from banks $ 148,277 $ 167,146 $ 169,261 $ 167,596 $ 187,901
Interest-bearing deposits 395,262 474,154 369,447 438,863 392,806
Investment securities, net of allowance for credit losses 4,489,263 4,524,353 4,445,516 4,148,314 3,700,857
Loans held for sale 3,938 11,187 5,990 18,582 4,430
Loans 9,356,241 9,241,861 9,041,576 9,121,250 9,318,228
Less: Allowance for credit losses - loans (195,984 ) (195,397 ) (199,972 ) (199,775 ) (201,082 )
Net loans 9,160,257 9,046,464 8,841,604 8,921,475 9,117,146
Premises and equipment 105,883 105,655 104,814 103,822 109,432
Federal Home Loan Bank stock 26,422 28,736 28,736 28,736 28,736
Interest receivable 56,081 57,187 53,079 54,173 54,662
Goodwill and other intangibles 569,494 570,860 572,323 573,786 571,536
Cash surrender value of life insurance 291,881 291,041 291,825 294,462 293,766
Other real estate owned 6,271 558 698 601 604
Tax asset, deferred and receivable 73,422 35,641 39,504 36,924 40,163
Other assets 138,807 140,167 137,928 135,763 127,027
TOTAL ASSETS $ 15,465,258 $ 15,453,149 $ 15,060,725 $ 14,923,097 $ 14,629,066
LIABILITIES
Deposits:
Noninterest-bearing $ 2,745,235 $ 2,709,646 $ 2,554,323 $ 2,479,853 $ 2,494,891
Interest-bearing 10,160,718 10,022,931 9,794,366 9,723,547 9,456,889
Total Deposits 12,905,953 12,732,577 12,348,689 12,203,400 11,951,780
Borrowings:
Securities sold under repurchase agreements 169,697 181,577 183,589 146,904 185,721
Federal Home Loan Bank advances 308,960 334,055 334,149 334,243 359,337
Subordinated debentures and other borrowings 118,677 118,618 118,558 118,498 118,439
Total Borrowings 597,334 634,250 636,296 599,645 663,497
Interest payable 3,589 2,762 3,736 2,929 4,020
Other liabilities 150,749 170,989 203,914 245,323 203,913
Total Liabilities 13,657,625 13,540,578 13,192,635 13,051,297 12,823,210
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 -- 100,000,000 shares
Issued and outstanding 6,678 6,676 6,689 6,747 6,744
Additional paid-in capital 987,404 985,818 988,659 1,009,182 1,007,300
Retained earnings 897,818 864,839 832,728 795,666 755,877
Accumulated other comprehensive income (84,392 ) 55,113 39,889 60,080 35,810
Total Stockholders' Equity 1,807,633 1,912,571 1,868,090 1,871,800 1,805,856
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 15,465,258 $ 15,453,149 $ 15,060,725 $ 14,923,097 $ 14,629,066

 

CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands, Except Per Share Amounts) March 31, December 31, September 30, June 30, March 31,
2022 2021 2021 2021 2021
INTEREST INCOME
Loans receivable:
Taxable $ 79,075 $ 80,583 $ 85,319 $ 87,002 $ 85,105
Tax-exempt 5,704 5,635 5,591 5,545 5,339
Investment securities:
Taxable 8,510 8,028 7,788 7,440 6,695
Tax-exempt 15,875 15,411 14,464 13,071 12,385
Deposits with financial institutions 230 173 218 129 114
Federal Home Loan Bank stock 146 163 168 88 178
Total Interest Income 109,540 109,993 113,548 113,275 109,816
INTEREST EXPENSE
Deposits 4,294 5,589 5,707 5,823 6,200
Federal funds purchased 1 2 2
Securities sold under repurchase agreements 89 75 77 75 87
Federal Home Loan Bank advances 1,218 1,389 1,389 1,452 1,442
Subordinated debentures and other borrowings 1,659 1,666 1,660 1,659 1,657
Total Interest Expense 7,260 8,720 8,833 9,011 9,388
NET INTEREST INCOME 102,280 101,273 104,715 104,264 100,428
Provision for credit losses - loans
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 102,280 101,273 104,715 104,264 100,428
OTHER INCOME
Service charges on deposit accounts 6,419 6,462 6,249 5,596 5,264
Fiduciary and wealth management fees 7,332 7,078 7,352 7,510 6,422
Card payment fees 5,723 3,937 4,156 4,159 4,367
Net gains and fees on sales of loans 2,199 3,423 3,955 8,325 3,986
Derivative hedge fees 918 1,562 1,028 943 317
Other customer fees 410 361 393 368 368
Earnings on cash surrender value of life insurance 1,696 2,051 2,468 1,205 1,336
Net realized gains on sales of available for sale securities 566 358 1,756 1,761 1,799
Other income 634 615 1,144 1,017 232
Total Other Income 25,897 25,847 28,501 30,884 24,091
OTHER EXPENSES
Salaries and employee benefits 42,519 42,432 43,314 42,438 38,811
Net occupancy 6,187 5,644 5,576 5,615 6,491
Equipment 5,080 4,994 4,529 4,848 5,030
Marketing 736 1,840 1,676 1,122 1,124
Outside data processing fees 4,363 4,581 4,794 4,698 4,244
Printing and office supplies 345 356 265 313 283
Intangible asset amortization 1,366 1,463 1,463 1,464 1,357
FDIC assessments 2,192 1,862 1,552 1,461 1,368
Other real estate owned and foreclosure expenses 564 171 (91 ) 178 734
Professional and other outside services 2,953 3,627 2,767 2,976 2,543
Other expenses 6,020 5,466 5,539 4,182 4,113
Total Other Expenses 72,325 72,436 71,384 69,295 66,098
INCOME BEFORE INCOME TAX 55,852 54,684 61,832 65,853 58,421
Income tax expense 7,266 6,951 9,062 10,294 8,952
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 48,586 $ 47,733 $ 52,770 $ 55,559 $ 49,469
Per Share Data:
Basic Net Income Available to Common Stockholders $ 0.91 $ 0.89 $ 0.98 $ 1.03 $ 0.92
Diluted Net Income Available to Common Stockholders $ 0.91 $ 0.89 $ 0.98 $ 1.03 $ 0.91
Cash Dividends Paid $ 0.29 $ 0.29 $ 0.29 $ 0.29 $ 0.26
Average Diluted Shares Outstanding (in thousands) 53,616 53,660 53,960 54,184 54,134
FINANCIAL RATIOS:
Return on Average Assets 1.26 % 1.25 % 1.41 % 1.51 % 1.39 %
Return on Average Stockholders' Equity 10.28 10.10 11.17 12.04 10.75
Return on Average Common Stockholders' Equity 10.28 10.10 11.17 12.04 10.75
Average Earning Assets to Average Assets 92.23 91.86 91.57 91.87 91.43
Allowance for Credit Losses - Loans as % of Total Loans 2.09 2.11 2.21 2.19 2.16
Net Charge-offs (Recoveries) as % of Average Loans (Annualized) (0.03 ) 0.20 (0.01 ) 0.06 0.16
Average Stockholders' Equity to Average Assets 12.23 12.36 12.59 12.51 12.92
Tax Equivalent Yield on Average Earning Assets 3.23 3.29 3.46 3.49 3.52
Interest Expense/Average Earning Assets 0.20 0.25 0.26 0.27 0.29
Net Interest Margin (FTE) on Average Earning Assets 3.03 3.04 3.20 3.22 3.23
Efficiency Ratio 52.79 53.49 51.18 48.91 50.23
Tangible Common Book Value Per Share $ 23.26 $ 25.21 $ 24.31 $ 24.15 $ 22.98

 

LOANS
(Dollars In Thousands) March 31, December 31, September 30, June 30, March 31,
2022 2021 2021 2021 2021
Commercial and industrial loans $ 2,826,660 $ 2,714,565 $ 2,573,615 $ 2,671,076 $ 2,876,212
Agricultural land, production and other loans to farmers 209,077 246,442 240,686 235,020 245,631
Real estate loans:
Construction 552,975 523,066 521,889 491,200 541,224
Commercial real estate, non-owner occupied 2,073,197 2,135,459 2,150,387 2,263,497 2,178,832
Commercial real estate, owner occupied 974,521 986,720 952,441 953,501 950,038
Residential 1,226,695 1,159,127 1,154,373 1,127,442 1,239,925
Home equity 512,641 523,754 531,307 489,997 482,229
Individuals' loans for household and other personal expenditures 147,593 146,092 135,093 130,819 126,387
Public finance and other commercial loans 832,882 806,636 781,785 758,698 677,750
Loans 9,356,241 9,241,861 9,041,576 9,121,250 9,318,228
Allowance for credit losses - loans (195,984 ) (195,397 ) (199,972 ) (199,775 ) (201,082 )
NET LOANS $ 9,160,257 $ 9,046,464 $ 8,841,604 $ 8,921,475 $ 9,117,146

 

DEPOSITS
(Dollars In Thousands) March 31, December 31, September 30, June 30, March 31,
2022 2021 2021 2021 2021
Demand deposits $ 7,806,033 $ 7,704,190 $ 7,317,399 $ 7,261,603 $ 7,245,850
Savings deposits 4,444,417 4,334,802 4,301,483 4,157,552 3,857,624
Certificates and other time deposits of $100,000 or more 252,033 273,379 283,396 304,394 332,745
Other certificates and time deposits 380,293 389,752 404,010 423,922 449,655
Brokered deposits 23,177 30,454 42,401 55,929 65,906
TOTAL DEPOSITS $ 12,905,953 $ 12,732,577 $ 12,348,689 $ 12,203,400 $ 11,951,780

 

CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars in Thousands)
For the Three Months Ended
March 31, 2022 March 31, 2021
Average
Balance
Interest
Income /
Expense
Average
Rate
Average
Balance
Interest
Income /
Expense
Average
Rate
Assets:
Interest-bearing deposits $ 484,626 $ 230 0.19 % $ 441,254 $ 114 0.10 %
Federal Home Loan Bank stock 27,914 146 2.09 28,736 178 2.48
Investment Securities:(1)
Taxable 1,957,675 8,510 1.74 1,494,008 6,695 1.79
Tax-Exempt(2) 2,536,634 20,095 3.17 1,822,899 15,677 3.44
Total Investment Securities 4,494,309 28,605 2.55 3,316,907 22,372 2.70
Loans held for sale 4,352 40 3.68 16,139 156 3.87
Loans:(3)
Commercial 6,868,438 64,679 3.77 6,876,818 69,174 4.02
Real Estate Mortgage 924,268 7,840 3.39 975,262 9,286 3.81
Installment 711,038 6,516 3.67 674,307 6,489 3.85
Tax-Exempt(2) 747,832 7,220 3.86 693,895 6,758 3.90
Total Loans 9,255,928 86,295 3.73 9,236,421 91,863 3.98
Total Earning Assets 14,262,777 115,276 3.23 % 13,023,318 114,527 3.52 %
Total Non-Earning Assets 1,201,828 1,221,421
Total Assets $ 15,464,605 $ 14,244,739
Liabilities:
Interest-bearing deposits:
Interest-bearing deposits $ 5,027,466 $ 2,408 0.19 % $ 4,616,988 $ 3,709 0.32 %
Money market deposits 2,514,429 872 0.14 2,086,322 835 0.16
Savingsdeposits 1,867,411 441 0.09 1,660,528 476 0.11
Certificates and other time deposits 676,661 573 0.34 859,334 1,180 0.55
Total Interest-bearing Deposits 10,085,967 4,294 0.17 9,223,172 6,200 0.27
Borrowings 616,572 2,966 1.92 675,117 3,188 1.89
Total Interest-bearing Liabilities 10,702,539 7,260 0.27 9,898,289 9,388 0.38
Noninterest-bearing deposits 2,731,723 2,344,746
Other liabilities 139,120 161,272
Total Liabilities 13,573,382 12,404,307
Stockholders' Equity 1,891,223 1,840,432
Total Liabilities and Stockholders' Equity $ 15,464,605 7,260 $ 14,244,739 9,388
Net Interest Income (FTE) $ 108,016 $ 105,139
Net Interest Spread (FTE)(4) 2.96 % 3.14 %
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets 3.23 % 3.52 %
Interest Expense / Average Earning Assets 0.20 % 0.29 %
Net Interest Margin (FTE)(5) 3.03 % 3.23 %
(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 2022 and 2021. These totals equal $5,736 and $4,711 for the three months ended March 31, 2022 and 2021, 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.

 

ADJUSTED EPS EXCLUDING PAYCHECK PROTECTION PROGRAM ("PPP") - NON-GAAP
(Dollars In Thousands, Except Per Share Amounts)
March 31, December 31, September 30, June 30, March 31,
2022 2021 2021 2021 2021
Net Income Available to Common Shareholders - GAAP $ 48,586 $ 47,733 $ 52,770 $ 55,559 $ 49,469
Adjustments:
PPP loan income (1,884 ) (3,721 ) (8,211 ) (9,725 ) (9,243 )
Tax on adjustment 462 912 2,013 2,385 2,266
Adjust Net Income Available to Common Stockholders - Non-GAAP $ 47,164 $ 44,924 $ 46,572 $ 48,219 $ 42,492
Average Diluted Shares Outstanding (in thousands) 53,616 53,660 53,960 54,184 54,134
Diluted Earnings Per Share - GAAP $ 0.91 $ 0.89 $ 0.98 $ 1.03 $ 0.91
Adjustments:
PPP loan income (0.04 ) (0.07 ) (0.15 ) (0.18 ) (0.17 )
Tax on adjustment 0.01 0.02 0.04 0.04 0.04
Adjusted Diluted Earnings Per Share - Non-GAAP $ 0.88 $ 0.84 $ 0.87 $ 0.89 $ 0.78

For more information, contact:
Nicole M. Weaver, Vice President and Director of Corporate Administration
765-521-7619 
http://www.firstmerchants.com