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First Merchants Corporation Announces First Quarter 2021 Earnings per Share

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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 deposits

392,806

132,944

Investment securities, net of allowance for credit losses of $245,000 and $0

3,700,857

2,697,954

Loans held for sale

4,430

5,039

Loans

9,318,228

8,606,849

Less: Allowance for credit losses - loans

(201,082

)

(99,454

)

Net loans

9,117,146

8,507,395

Premises and equipment

109,432

114,045

Federal Home Loan Bank stock

28,736

28,736

Interest receivable

54,662

47,489

Goodwill and other intangibles

571,536

577,366

Cash surrender value of life insurance

293,766

289,574

Other real estate owned

604

7,972

Tax asset, deferred and receivable

40,163

9,497

Other assets

127,027

147,776

TOTAL ASSETS

$

14,629,066

$

12,693,518

LIABILITIES

Deposits:

Noninterest-bearing

$

2,494,891

$

1,688,205

Interest-bearing

9,456,889

8,182,279

Total Deposits

11,951,780

9,870,484

Borrowings:

Federal funds purchased

47,000

Securities sold under repurchase agreements

185,721

183,317

Federal Home Loan Bank advances

359,337

480,995

Subordinated debentures and other borrowings

118,439

128,741

Total Borrowings

663,497

840,053

Interest payable

4,020

7,746

Other liabilities

203,913

197,275

Total Liabilities

12,823,210

10,915,558

STOCKHOLDERS' EQUITY

Cumulative Preferred Stock, $1,000 par value, $1,000 liquidation value:

Authorized -- 600 shares

Issued and outstanding - 125 shares

125

125

Common Stock, $.125 stated value:

Authorized -- 100,000,000 shares

Issued and outstanding - 53,953,723 and 53,754,137 shares

6,744

6,719

Additional paid-in capital

1,007,300

1,000,942

Retained earnings

755,877

716,518

Accumulated other comprehensive income

35,810

53,656

Total Stockholders' Equity

1,805,856

1,777,960

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

14,629,066

$

12,693,518



CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended

(Dollars In Thousands, Except Per Share Amounts)

March 31,

2021

2020

INTEREST INCOME

Loans receivable:

Taxable

$

85,105

$

96,652

Tax-exempt

5,339

5,315

Investment securities:

Taxable

6,695

7,631

Tax-exempt

12,385

9,335

Deposits with financial institutions

114

575

Federal Home Loan Bank stock

178

299

Total Interest Income

109,816

119,807

INTEREST EXPENSE

Deposits

6,200

21,748

Federal funds purchased

2

111

Securities sold under repurchase agreements

87

352

Federal Home Loan Bank advances

1,442

1,774

Subordinated debentures and other borrowings

1,657

1,945

Total Interest Expense

9,388

25,930

NET INTEREST INCOME

100,428

93,877

Provision for credit losses - loans

19,752

NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES

100,428

74,125

OTHER INCOME

Service charges on deposit accounts

5,264

5,970

Fiduciary and wealth management fees

6,422

5,985

Card payment fees

4,367

5,907

Net gains and fees on sales of loans

3,986

3,363

Derivative hedge fees

317

1,939

Other customer fees

368

398

Earnings on cash surrender value of life insurance

1,336

1,360

Net realized gains on sales of available for sale securities

1,799

4,612

Other income

232

265

Total Other Income

24,091

29,799

OTHER EXPENSES

Salaries and employee benefits

38,811

39,243

Net occupancy

6,491

5,801

Equipment

5,030

4,344

Marketing

1,124

1,443

Outside data processing fees

4,244

4,199

Printing and office supplies

283

387

Intangible asset amortization

1,357

1,514

FDIC assessments

1,368

1,523

Other real estate owned and foreclosure expenses

734

505

Professional and other outside services

2,543

2,258

Other expenses

4,113

4,954

Total Other Expenses

66,098

66,171

INCOME BEFORE INCOME TAX

58,421

37,753

Income tax expense

8,952

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 Loans

9,236,421

8,526,571

Total Earning Assets

13,023,318

11,292,430

Total Deposits

11,567,918

9,886,273

Total Stockholders' Equity

1,840,432

1,816,418

FINANCIAL RATIOS:

Return on Average Assets

1.39

%

1.09

%

Return on Average Stockholders' Equity

10.75

7.55

Return on Average Common Stockholders' Equity

10.75

7.55

Average Earning Assets to Average Assets

91.43

89.81

Allowance for Credit Losses - Loans as % of Total Loans

2.16

1.15

Net Charge-offs as % of Average Loans (Annualized)

0.16

0.03

Average Stockholders' Equity to Average Assets

12.92

14.45

Tax Equivalent Yield on Average Earning Assets

3.52

4.38

Interest Expense/Average Earning Assets

0.29

0.92

Net Interest Margin (FTE) on Average Earning Assets

3.23

3.46

Efficiency Ratio

50.23

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 Loans

655

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 Repossessions

604

940

6,984

7,409

8,017

Non-Performing Assets (NPA)

59,182

65,651

66,400

58,597

24,331

90+ Days Delinquent

1,093

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-offs

3,621

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 deposits

392,806

392,305

273,936

380,021

132,944

Investment securities, net of allowance for credit losses

3,700,857

3,146,787

2,933,286

2,789,379

2,697,954

Loans held for sale

4,430

3,966

3,183

901

5,039

Loans

9,318,228

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 loans

9,117,146

9,112,526

9,117,107

9,177,422

8,507,395

Premises and equipment

109,432

111,062

112,959

112,548

114,045

Federal Home Loan Bank stock

28,736

28,736

28,736

28,736

28,736

Interest receivable

54,662

53,948

52,992

57,063

47,489

Goodwill and other intangibles

571,536

572,893

574,369

575,855

577,366

Cash surrender value of life insurance

293,766

292,745

291,543

290,715

289,574

Other real estate owned

604

940

6,942

7,367

7,972

Tax asset, deferred and receivable

40,163

12,340

21,762

13,126

9,497

Other assets

127,027

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-bearing

9,456,889

9,063,472

8,718,546

8,705,637

8,182,279

Total Deposits

11,951,780

11,361,610

10,906,153

10,965,988

9,870,484

Borrowings:

Federal funds purchased

80,000

47,000

Securities sold under repurchase agreements

185,721

177,102

187,732

181,150

183,317

Federal Home Loan Bank advances

359,337

389,430

399,522

400,817

480,995

Subordinated debentures and other borrowings

118,439

118,380

118,320

285,197

128,741

Total Borrowings

663,497

684,912

785,574

867,164

840,053

Interest payable

4,020

3,287

5,038

5,587

7,746

Other liabilities

203,913

141,756

206,929

171,544

197,275

Total Liabilities

12,823,210

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 outstanding

125

125

125

125

125

Common Stock, $.125 stated value:

Authorized -- 100,000,000 shares

Issued and outstanding

6,744

6,740

6,736

6,724

6,719

Additional paid-in capital

1,007,300

1,005,366

1,003,777

1,002,962

1,000,942

Retained earnings

755,877

788,578

757,550

735,439

716,518

Accumulated other comprehensive income

35,810

74,836

65,468

63,845

53,656

Total Stockholders' Equity

1,805,856

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-exempt

5,339

5,414

5,395

5,359

5,315

Investment securities:

Taxable

6,695

5,263

5,399

6,147

7,631

Tax-exempt

12,385

12,056

10,931

10,019

9,335

Deposits with financial institutions

114

139

90

134

575

Federal Home Loan Bank stock

178

214

248

281

299

Total Interest Income

109,816

113,224

106,225

109,252

119,807

INTEREST EXPENSE

Deposits

6,200

7,509

9,776

12,707

21,748

Federal funds purchased

2

2

5

2

111

Securities sold under repurchase agreements

87

77

83

92

352

Federal Home Loan Bank advances

1,442

1,656

1,749

1,794

1,774

Subordinated debentures and other borrowings

1,657

1,669

1,691

1,639

1,945

Total Interest Expense

9,388

10,913

13,304

16,234

25,930

NET INTEREST INCOME

100,428

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 LOSSES

100,428

97,829

80,377

71,123

74,125

OTHER INCOME

Service charges on deposit accounts

5,264

5,508

5,209

4,312

5,970

Fiduciary and wealth management fees

6,422

6,251

5,910

5,601

5,985

Card payment fees

4,367

3,502

3,996

6,097

5,907

Net gains and fees on sales of loans

3,986

5,393

5,841

3,674

3,363

Derivative hedge fees

317

2,281

1,715

1,042

1,939

Other customer fees

368

394

372

333

398

Earnings on cash surrender value of life insurance

1,336

1,283

1,171

1,326

1,360

Net realized gains on sales of available for sale securities

1,799

2,398

1,817

3,068

4,612

Other income

232

473

132

1,028

265

Total Other Income

24,091

27,483

26,163

26,481

29,799

OTHER EXPENSES

Salaries and employee benefits

38,811

41,809

39,187

35,698

39,243

Net occupancy

6,491

9,653

5,855

5,447

5,801

Equipment

5,030

5,555

4,956

4,489

4,344

Marketing

1,124

1,763

1,311

2,092

1,443

Outside data processing fees

4,244

3,839

3,776

2,618

4,199

Printing and office supplies

283

307

331

279

387

Intangible asset amortization

1,357

1,476

1,486

1,511

1,514

FDIC assessments

1,368

1,560

1,249

1,472

1,523

Other real estate owned and foreclosure expenses

734

(1,576

)

717

684

505

Professional and other outside services

2,543

2,836

2,254

1,553

2,258

Other expenses

4,113

5,314

3,587

4,146

4,954

Total Other Expenses

66,098

72,536

64,709

59,989

66,171

INCOME BEFORE INCOME TAX

58,421

52,776

41,831

37,615

37,753

Income tax expense

8,952

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 Assets

1.39

%

1.29

%

1.06

%

0.97

%

1.09

%

Return on Average Stockholders' Equity

10.75

9.72

7.91

7.35

7.55

Return on Average Common Stockholders' Equity

10.75

9.72

7.91

7.35

7.55

Average Earning Assets to Average Assets

91.43

90.66

90.34

89.25

89.81

Allowance for Credit Losses - Loans as % of Total 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

Average Stockholders' Equity to Average Assets

12.92

13.29

13.41

13.15

14.45

Tax Equivalent Yield on Average Earning Assets

3.52

3.72

3.58

3.72

4.38

Interest Expense/Average Earning Assets

0.29

0.34

0.43

0.53

0.92

Net Interest Margin (FTE) on Average Earning Assets

3.23

3.38

3.15

3.19

3.46

Efficiency Ratio

50.23

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 farmers

245,631

281,884

301,192

316,815

315,950

Real estate loans:

Construction

541,224

484,723

622,084

640,560

643,674

Commercial real estate, non-owner occupied

2,178,832

2,220,949

2,098,589

2,097,767

2,118,148

Commercial real estate, owner occupied

950,038

958,501

931,815

919,254

921,491

Residential

1,239,925

1,234,741

1,146,406

1,145,187

1,121,556

Home equity

482,229

508,259

527,458

532,314

570,398

Individuals' loans for household and other personal expenditures

126,387

129,479

125,411

123,611

129,765

Public finance and other commercial loans

677,750

647,939

615,547

624,704

586,641

Loans

9,318,228

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 deposits

3,857,624

3,661,713

3,518,286

3,278,156

2,962,821

Certificates and other time deposits of $100,000 or more

332,745

346,194

467,610

607,474

694,062

Other certificates and time deposits

449,655

459,168

542,919

669,119

717,723

Brokered deposits

65,906

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 stock

28,736

178

2.48

28,737

299

4.16

Investment Securities: (1)

Taxable

1,494,008

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 Securities

3,316,907

22,372

2.70

2,577,263

19,447

3.02

Loans held for sale

16,139

156

3.87

17,217

193

4.48

Loans: (3)

Commercial

6,876,818

69,174

4.02

6,235,336

76,952

4.94

Real Estate Mortgage

975,262

9,286

3.81

870,654

10,402

4.78

Installment

674,307

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 Loans

9,236,421

91,863

3.98

8,526,571

103,380

4.85

Total Earning Assets

13,023,318

114,527

3.52

%

11,292,430

123,701

4.38

%

Net unrealized gain (loss) on securities available for sale

55,658

48,656

Allowance for credit losses

(204,353

)

(81,160

)

Cash and cash equivalents

165,774

159,757

Premises and equipment

110,992

113,812

Other assets

1,093,350

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 deposits

2,086,322

835

0.16

1,535,844

3,783

0.99

Savings deposits

1,660,528

476

0.11

1,425,054

1,827

0.51

Certificates and other time deposits

859,334

1,180

0.55

1,666,642

7,862

1.89

Total Interest-bearing Deposits

9,223,172

6,200

0.27

8,216,780

21,748

1.06

Borrowings

675,117

3,188

1.89

748,185

4,182

2.24

Total Interest-bearing Liabilities

9,898,289

9,388

0.38

8,964,965

25,930

1.16

Noninterest-bearing deposits

2,344,746

1,669,493

Other liabilities

161,272

122,362

Total Liabilities

12,404,307

10,756,820

Stockholders' Equity

1,840,432

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