First Merchants Corporation Announces Record Third Quarter 2016 Results

First Merchants CorporationFirst Merchants Corporation. Photo by: Mike Rhodes

Muncie, IN—First Merchants Corporation (NASDAQ – FRME) reported record third quarter 2016 net income of $21.1 million, compared to $17.1 million during the third quarter of 2015. Earnings per share for the period totaled a record $.51 per share, an increase of $.06 per share, or 13.3 percent, over the same period in 2015. Year-to-date net income totaled a record $58.8 million, compared to $51.2 million during the same period in 2015. Earnings per share for the nine months ended September 30, 2016 totaled a record $1.43 per share, an increase of $.08 per share or 5.9 percent, over same period in 2015.

Michael C. Rechin, President and Chief Executive Officer, stated, “First Merchants focused its 2016 plan on proving our progress after completing two acquisitions and several major organizational initiatives in 2015 and the first quarter of 2016. We are pleased to show two consecutive quarters of clean, high-performance results while demonstrating the strength of our core franchise by delivering organic growth, profitability and efficiency. Our results reflect a growing company with a 1.22 percent return on assets and a 55.12 percent efficiency ratio. As we focus on the road ahead, our healthy economic markets should allow for strong organic growth and continued high-performance.”

Total assets and total loans climbed to new heights reaching $7 billion and $5 billion, respectively, as of September 30, 2016, compared to $6.2 billion and $4.3 billion, as of September 30, 2015 representing increases of 13.5 and 15.1 percent, respectively. Total deposits equaled $5.4 billion as of quarter-end and tangible common equity increased to record levels totaling $647 million or $15.86 per share.

Net-interest income totaled a record $57.7 million for the quarter and reported net-interest margin increased by 9 basis points over the third quarter of 2015, totaling 3.94 percent. Yields on earning assets totaled 4.37 percent and the cost of supporting liabilities totaled .43 percent. When adjusted for fair value accretion, net-interest margin totaled 3.70 percent for the quarter, 1 basis point less than the third quarter of 2015.

Non-interest income totaled $16.9 million for the quarter, up $529,000 from the third quarter of 2015 total of $16.3 million. Non-interest expense totaled $44.1 million for the quarter, an increase of $1.1 million from the third quarter of 2015.

The Corporation’s provision expense totaled $1.9 million during the quarter to account for net charge-offs of $630,000 and loan growth of $182.4 million. Non-performing loans now total $38 million, the allowance for loan losses totaled $63.5 million and the remaining fair value marks totaled $37.9 million. The allowance is 1.28 percent of total loans and 1.50 percent of non-purchased loans.

As of September 30, 2016, the Corporation’s total risk-based capital ratio equaled 14.18 percent, the common equity tier 1 capital ratio equaled 11.05 percent, and the tangible common equity ratio totaled 9.48 percent.

About First Merchants Corporation

First Merchants Corporation is a financial holding company headquartered in Muncie, Indiana. The Corporation is comprised of First Merchants Bank, which also operates as Lafayette Bank & Trust, and First Merchants Private Wealth Advisors which operates 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.

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