Indiana
|
35-1544218
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
200 East Jackson
Muncie, Indiana
|
47305-2814
|
(Address of principal executive offices)
|
(Zip Code)
|
Title of Each Class
|
Name of each exchange on which registered
|
Common Stock, $0.125 stated value per share
|
The NASDAQ Stock Market
|
Documents
|
Part of Form 10-K into which incorporated
|
Portions of the Registrant’s Definitive
|
Part III (Items 10 through 14)
|
Proxy Statement for Annual Meeting of
|
|
Shareholders to be held May 4, 2015
|
|
|
|
|
|
|
|
|
|
|
Item 1.
|
||
|
Item 1A.
|
||
|
Item 1B.
|
||
|
Item 2.
|
||
|
Item 3.
|
||
|
Item 4.
|
||
|
|
||
|
|
|
|
|
|
|
|
|
Item 5.
|
||
|
Item 6.
|
||
|
Item 7.
|
||
|
Item 7A.
|
||
|
Item 8.
|
||
|
Item 9.
|
||
|
Item 9A.
|
||
|
Item 9B.
|
||
|
|
|
|
|
|
|
|
|
Item 10.
|
||
|
Item 11.
|
||
|
Item 12.
|
||
|
Item 13.
|
||
|
Item 14.
|
||
|
|
|
|
|
|
|
|
|
Item 15.
|
•
|
statements of the Corporation’s goals, intentions and expectations;
|
•
|
statements regarding the Corporation’s business plan and growth strategies;
|
•
|
statements regarding the asset quality of the Corporation’s loan and investment portfolios; and
|
•
|
estimates of the Corporation’s risks and future costs and benefits.
|
•
|
acquiring direct or indirect control or ownership of any voting shares of any bank or bank holding company if, after such acquisition, the bank holding company will directly or indirectly own or control more than 5 percent of the voting shares of the bank or bank holding company;
|
•
|
merging or consolidating with another bank holding company; or
|
•
|
acquiring substantially all of the assets of any bank.
|
|
Corporation
|
|
Regulatory Minimum Requirement
|
||
Tier 1 risk-based capital ratio
|
12.63
|
%
|
|
4.00
|
%
|
Total risk-based capital ratio
|
15.34
|
%
|
|
8.00
|
%
|
•
|
higher minimum capital requirements, including a new "common equity tier 1 capital" ratio of 4.5 percent, a tier 1 capital ratio of 6 percent, a total capital ratio of 8 percent and a minimum leverage ratio of 4 percent;
|
•
|
stricter eligibility for regulatory capital instruments:
|
•
|
restrictions on the payment of capital distributions (including dividends) and certain discretionary bonus payments to executive officers if certain thresholds are not met under a new "capital conservation buffer" as defined in the rules;
|
•
|
replacement of the external credit ratings approach to standards of creditworthiness with a simplified supervisory formula approach;
|
•
|
stricter limitations on the extent to which certain mortgage servicing assets, deferred tax assets and investments in unconsolidated financial institutions may be included in common equity tier 1 capital;
|
•
|
increased risk weights for past due loans, certain commercial real estate loans and certain equity exposures.
|
•
|
increase the cost of operations due to greater regulatory oversight, supervision and examination of banks and bank holding companies, including higher deposit insurance premiums;
|
•
|
limit the Corporation’s ability to raise additional capital through the use of trust preferred securities as new issuances of these securities may no longer be included as Tier 1 capital;
|
•
|
reduce the flexibility to generate or originate certain revenue-producing assets based on increased regulatory capital standards; and
|
•
|
limit the ability to expand consumer product and service offerings due to anticipated stricter consumer protection laws and regulations.
|
•
|
a prohibition on personal loans made or arranged by the issuer to its directors and executive officers (except for loans made by a bank subject to Regulation O);
|
•
|
independence requirements for audit committee members;
|
•
|
independence requirements for company auditors;
|
•
|
certification of financial statements on Forms 10-K and 10-Q reports by the chief executive officer and the chief financial officer;
|
•
|
the forfeiture by the chief executive officer and chief financial officer of bonuses or other incentive-based compensation and profits from the sale of an issuer’s securities by such officers in the twelve-month period following initial publication of any financial statements that later require restatement due to corporate misconduct;
|
•
|
disclosure of off-balance sheet transactions;
|
•
|
two-business day filing requirements for insiders filing Form 4s;
|
•
|
disclosure of a code of ethics for financial officers and filing a Form 8-K for a change in or waiver of such code;
|
•
|
the reporting of securities violations “up the ladder” by both in-house and outside attorneys;
|
•
|
restrictions on the use of non-GAAP financial measures in press releases and SEC filings;
|
•
|
the formation of a public accounting oversight board; and
|
•
|
various increased criminal penalties for violations of securities laws.
|
|
Average Balance
|
|
Interest
Income /
Expense
|
|
Average
Rate
|
|
Average Balance
|
|
Interest
Income /
Expense
|
|
Average
Rate
|
|
Average Balance
|
|
Interest
Income /
Expense
|
|
Average
Rate
|
|||||||||||||||
(Dollars in Thousands)
|
2014
|
|
2013
|
|
2012
|
|||||||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing deposits
|
$
|
53,231
|
|
|
$
|
124
|
|
|
0.2
|
%
|
|
$
|
74,964
|
|
|
$
|
158
|
|
|
0.2
|
%
|
|
$
|
57,842
|
|
|
$
|
100
|
|
|
0.2
|
%
|
Federal reserve and federal home loan bank stock
|
42,142
|
|
|
2,124
|
|
|
5.0
|
|
|
33,620
|
|
|
1,488
|
|
|
4.4
|
|
|
32,819
|
|
|
1,408
|
|
|
4.3
|
|
||||||
Securities:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Taxable
|
763,450
|
|
|
19,882
|
|
|
2.6
|
|
|
617,524
|
|
|
15,214
|
|
|
2.5
|
|
|
670,973
|
|
|
17,027
|
|
|
2.5
|
|
||||||
Tax-Exempt
(2)
|
396,435
|
|
|
22,127
|
|
|
5.6
|
|
|
282,584
|
|
|
16,660
|
|
|
5.9
|
|
|
251,724
|
|
|
15,675
|
|
|
6.2
|
|
||||||
Total securities
|
1,159,885
|
|
|
42,009
|
|
|
3.6
|
|
|
900,108
|
|
|
31,874
|
|
|
3.5
|
|
|
922,697
|
|
|
32,702
|
|
|
3.5
|
|
||||||
Loans held for sale
|
6,681
|
|
|
485
|
|
|
7.3
|
|
|
16,137
|
|
|
770
|
|
|
4.8
|
|
|
20,648
|
|
|
1,024
|
|
|
5.0
|
|
||||||
Loans:
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial
|
2,919,020
|
|
|
133,567
|
|
|
4.6
|
|
|
2,391,221
|
|
|
113,613
|
|
|
4.8
|
|
|
2,166,238
|
|
|
114,078
|
|
|
5.3
|
|
||||||
Real estate mortgage
|
429,384
|
|
|
19,812
|
|
|
4.6
|
|
|
277,520
|
|
|
12,375
|
|
|
4.5
|
|
|
293,384
|
|
|
13,848
|
|
|
4.7
|
|
||||||
Installment
|
361,484
|
|
|
18,175
|
|
|
5.0
|
|
|
308,233
|
|
|
15,994
|
|
|
5.2
|
|
|
324,553
|
|
|
17,795
|
|
|
5.5
|
|
||||||
Tax-Exempt
(2)
|
13,511
|
|
|
504
|
|
|
3.7
|
|
|
15,444
|
|
|
605
|
|
|
3.9
|
|
|
14,993
|
|
|
739
|
|
|
4.9
|
|
||||||
Total loans
|
3,730,080
|
|
|
172,543
|
|
|
4.6
|
|
|
3,008,555
|
|
|
143,357
|
|
|
4.8
|
|
|
2,819,816
|
|
|
147,484
|
|
|
5.2
|
|
||||||
Total earning assets
|
4,985,338
|
|
|
216,800
|
|
|
4.3
|
%
|
|
4,017,247
|
|
|
176,877
|
|
|
4.4
|
%
|
|
3,833,174
|
|
|
181,694
|
|
|
4.7
|
%
|
||||||
Net unrealized gain on securities available for sale
|
8,921
|
|
|
|
|
|
|
4,521
|
|
|
|
|
|
|
16,116
|
|
|
|
|
|
||||||||||||
Allowance for loan losses
|
(67,969
|
)
|
|
|
|
|
|
(68,806
|
)
|
|
|
|
|
|
(71,038
|
)
|
|
|
|
|
||||||||||||
Cash and due from banks
|
87,068
|
|
|
|
|
|
|
73,161
|
|
|
|
|
|
|
66,109
|
|
|
|
|
|
||||||||||||
Premises and equipment
|
75,202
|
|
|
|
|
|
|
57,228
|
|
|
|
|
|
|
51,692
|
|
|
|
|
|
||||||||||||
Other assets
|
482,794
|
|
|
|
|
|
|
372,060
|
|
|
|
|
|
|
349,943
|
|
|
|
|
|
||||||||||||
Total assets
|
$
|
5,571,354
|
|
|
|
|
|
|
$
|
4,455,411
|
|
|
|
|
|
|
$
|
4,245,996
|
|
|
|
|
|
|||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
NOW accounts
|
$
|
1,066,402
|
|
|
$
|
1,110
|
|
|
0.1
|
%
|
|
$
|
880,323
|
|
|
$
|
941
|
|
|
0.1
|
%
|
|
$
|
814,831
|
|
|
$
|
1,007
|
|
|
0.1
|
%
|
Money market deposit accounts
|
776,712
|
|
|
1,572
|
|
|
0.2
|
|
|
603,012
|
|
|
1,287
|
|
|
0.2
|
|
|
501,537
|
|
|
1,370
|
|
|
0.3
|
|
||||||
Savings deposits
|
533,080
|
|
|
619
|
|
|
0.1
|
|
|
377,106
|
|
|
421
|
|
|
0.1
|
|
|
327,644
|
|
|
528
|
|
|
0.2
|
|
||||||
Certificates and other time deposits
|
1,042,539
|
|
|
8,377
|
|
|
0.8
|
|
|
807,764
|
|
|
7,404
|
|
|
0.9
|
|
|
935,713
|
|
|
11,895
|
|
|
1.3
|
|
||||||
Total interest-bearing deposits
|
3,418,733
|
|
|
11,678
|
|
|
0.3
|
|
|
2,668,205
|
|
|
10,053
|
|
|
0.4
|
|
|
2,579,725
|
|
|
14,800
|
|
|
0.6
|
|
||||||
Borrowings
|
492,128
|
|
|
10,164
|
|
|
2.1
|
|
|
400,580
|
|
|
6,516
|
|
|
1.6
|
|
|
411,915
|
|
|
8,813
|
|
|
2.1
|
|
||||||
Total interest-bearing liabilities
|
3,910,861
|
|
|
21,842
|
|
|
0.6
|
|
|
3,068,785
|
|
|
16,569
|
|
|
0.5
|
|
|
2,991,640
|
|
|
23,613
|
|
|
0.8
|
|
||||||
Noninterest-bearing deposits
|
945,222
|
|
|
|
|
|
|
797,435
|
|
|
|
|
|
|
683,295
|
|
|
|
|
|
||||||||||||
Other liabilities
|
39,976
|
|
|
|
|
|
|
48,936
|
|
|
|
|
|
|
35,564
|
|
|
|
|
|
||||||||||||
Total liabilities
|
4,896,059
|
|
|
|
|
|
|
3,915,156
|
|
|
|
|
|
|
3,710,499
|
|
|
|
|
|
||||||||||||
Stockholders' Equity
|
675,295
|
|
|
|
|
|
|
540,255
|
|
|
|
|
|
|
535,497
|
|
|
|
|
|
||||||||||||
Total Liabilities and Stockholders' Equity
|
$
|
5,571,354
|
|
|
21,842
|
|
|
0.4
|
|
|
$
|
4,455,411
|
|
|
16,569
|
|
|
0.4
|
|
|
$
|
4,245,996
|
|
|
23,613
|
|
|
0.6
|
|
|||
Net Interest Income
|
|
|
$
|
194,958
|
|
|
|
|
|
|
$
|
160,308
|
|
|
|
|
|
|
$
|
158,081
|
|
|
|
|||||||||
Net Interest Margin
|
|
|
|
|
3.9
|
%
|
|
|
|
|
|
4.0
|
%
|
|
|
|
|
|
4.1
|
%
|
|
2014 Compared to 2013
Increase (Decrease) Due To |
|
2013 Compared to 2012
Increase (Decrease) Due To |
|
2012 Compared to 2011
Increase (Decrease) Due To |
||||||||||||||||||||||||||||||
(Dollars in Thousands, Fully Taxable Equivalent Basis)
|
Volume
|
|
Rate
|
|
Total
|
|
Volume
|
|
Rate
|
|
Total
|
|
Volume
|
|
Rate
|
|
Total
|
||||||||||||||||||
Interest Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Federal funds sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(3
|
)
|
|
|
|
|
$
|
(3
|
)
|
|||||||
Interest-bearing deposits
|
$
|
(49
|
)
|
|
$
|
15
|
|
|
$
|
(34
|
)
|
|
$
|
33
|
|
|
$
|
25
|
|
|
$
|
58
|
|
|
(40
|
)
|
|
$
|
(142
|
)
|
|
(182
|
)
|
||
Federal Reserve and Federal Home Loan Bank stock
|
411
|
|
|
225
|
|
|
636
|
|
|
35
|
|
|
45
|
|
|
80
|
|
|
17
|
|
|
72
|
|
|
89
|
|
|||||||||
Securities
|
9,393
|
|
|
742
|
|
|
10,135
|
|
|
(800
|
)
|
|
(28
|
)
|
|
(828
|
)
|
|
1,222
|
|
|
(3,392
|
)
|
|
(2,170
|
)
|
|||||||||
Mortgage loans held for sale
|
(576
|
)
|
|
291
|
|
|
(285
|
)
|
|
(216
|
)
|
|
(38
|
)
|
|
(254
|
)
|
|
575
|
|
|
(105
|
)
|
|
470
|
|
|||||||||
Loans
|
33,894
|
|
|
(4,423
|
)
|
|
29,471
|
|
|
9,718
|
|
|
(13,591
|
)
|
|
(3,873
|
)
|
|
3,226
|
|
|
(6,740
|
)
|
|
(3,514
|
)
|
|||||||||
Totals
|
43,073
|
|
|
(3,150
|
)
|
|
39,923
|
|
|
8,770
|
|
|
(13,587
|
)
|
|
(4,817
|
)
|
|
4,997
|
|
|
(10,307
|
)
|
|
(5,310
|
)
|
|||||||||
Interest Expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
NOW accounts
|
194
|
|
|
(25
|
)
|
|
169
|
|
|
77
|
|
|
(143
|
)
|
|
(66
|
)
|
|
72
|
|
|
(518
|
)
|
|
(446
|
)
|
|||||||||
Money market deposit accounts
|
354
|
|
|
(69
|
)
|
|
285
|
|
|
248
|
|
|
(331
|
)
|
|
(83
|
)
|
|
101
|
|
|
(288
|
)
|
|
(187
|
)
|
|||||||||
Savings deposits
|
180
|
|
|
18
|
|
|
198
|
|
|
72
|
|
|
(179
|
)
|
|
(107
|
)
|
|
64
|
|
|
(204
|
)
|
|
(140
|
)
|
|||||||||
Certificates and other time deposits
|
1,966
|
|
|
(993
|
)
|
|
973
|
|
|
(1,477
|
)
|
|
(3,014
|
)
|
|
(4,491
|
)
|
|
(1,624
|
)
|
|
(5,084
|
)
|
|
(6,708
|
)
|
|||||||||
Borrowings
|
1,673
|
|
|
1,975
|
|
|
3,648
|
|
|
(237
|
)
|
|
(2,060
|
)
|
|
(2,297
|
)
|
|
(1,370
|
)
|
|
(5,426
|
)
|
|
(6,796
|
)
|
|||||||||
Totals
|
4,367
|
|
|
906
|
|
|
5,273
|
|
|
(1,317
|
)
|
|
(5,727
|
)
|
|
(7,044
|
)
|
|
(2,757
|
)
|
|
(11,520
|
)
|
|
(14,277
|
)
|
|||||||||
Change in net interest income (fully taxable equivalent basis)
|
$
|
38,706
|
|
|
$
|
(4,056
|
)
|
|
34,650
|
|
|
$
|
10,087
|
|
|
$
|
(7,860
|
)
|
|
2,227
|
|
|
$
|
7,754
|
|
|
$
|
1,213
|
|
|
8,967
|
|
|||
Tax equivalent adjustment using marginal rate of 35% for 2014, 2013, and 2012
|
|
|
|
|
(1,878
|
)
|
|
|
|
|
|
(298
|
)
|
|
|
|
|
|
14
|
|
|||||||||||||||
Change in net interest income
|
|
|
|
|
$
|
32,772
|
|
|
|
|
|
|
$
|
1,929
|
|
|
|
|
|
|
$
|
8,981
|
|
(Dollars in Thousands)
|
Amortized Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Fair Value
|
||||||||
Available for sale at December 31, 2014
|
|
|
|
|
|
|
|
||||||||
U.S. Government-sponsored agency securities
|
$
|
100
|
|
|
$
|
9
|
|
|
|
|
|
$
|
109
|
|
|
State and municipal
|
216,915
|
|
|
11,801
|
|
|
$
|
123
|
|
|
228,593
|
|
|||
U.S. Government-sponsored mortgage-backed securities
|
310,460
|
|
|
8,771
|
|
|
127
|
|
|
319,104
|
|
||||
Corporate obligations
|
31
|
|
|
|
|
|
|
|
31
|
|
|||||
Equity securities
|
1,706
|
|
|
|
|
|
|
1,706
|
|
||||||
Total available for sale
|
529,212
|
|
|
20,581
|
|
|
250
|
|
|
549,543
|
|
||||
Held to maturity at December 31, 2014
|
|
|
|
|
|
|
|
||||||||
State and municipal
|
204,443
|
|
|
5,716
|
|
|
96
|
|
|
210,063
|
|
||||
U.S. Government-sponsored mortgage-backed securities
|
426,645
|
|
|
11,527
|
|
|
512
|
|
|
437,660
|
|
||||
Total held to maturity
|
631,088
|
|
|
17,243
|
|
|
608
|
|
|
647,723
|
|
||||
Total Investment Securities
|
$
|
1,160,300
|
|
|
$
|
37,824
|
|
|
$
|
858
|
|
|
$
|
1,197,266
|
|
|
Amortized Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Fair Value
|
||||||||
Available for sale at December 31, 2013
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
$
|
15,914
|
|
|
$
|
80
|
|
|
$
|
21
|
|
|
$
|
15,973
|
|
U.S. Government-sponsored agency securities
|
3,550
|
|
|
12
|
|
|
17
|
|
|
3,545
|
|
||||
State and municipal
|
231,005
|
|
|
3,878
|
|
|
3,896
|
|
|
230,987
|
|
||||
U.S. Government-sponsored mortgage-backed securities
|
279,299
|
|
|
3,926
|
|
|
1,973
|
|
|
281,252
|
|
||||
Corporate obligations
|
6,374
|
|
|
|
|
3,636
|
|
|
2,738
|
|
|||||
Equity securities
|
1,706
|
|
|
|
|
|
|
1,706
|
|
||||||
Total available for sale
|
537,848
|
|
|
7,896
|
|
|
9,543
|
|
|
536,201
|
|
||||
Held to maturity at December 31, 2013
|
|
|
|
|
|
|
|
||||||||
State and municipal
|
145,941
|
|
|
62
|
|
|
91
|
|
|
145,912
|
|
||||
U.S. Government-sponsored mortgage-backed securities
|
413,437
|
|
|
5,220
|
|
|
3,722
|
|
|
414,935
|
|
||||
Total held to maturity
|
559,378
|
|
|
5,282
|
|
|
3,813
|
|
|
560,847
|
|
||||
Total Investment Securities
|
$
|
1,097,226
|
|
|
$
|
13,178
|
|
|
$
|
13,356
|
|
|
$
|
1,097,048
|
|
|
Amortized Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Fair Value
|
||||||||
Available for sale at December 31, 2012
|
|
|
|
|
|
|
|
||||||||
U.S. Government-sponsored agency securities
|
$
|
4,475
|
|
|
$
|
165
|
|
|
|
|
$
|
4,640
|
|
||
State and municipal
|
148,187
|
|
|
10,025
|
|
|
$
|
18
|
|
|
158,194
|
|
|||
U.S. Government-sponsored mortgage-backed securities
|
337,631
|
|
|
10,994
|
|
|
46
|
|
|
348,579
|
|
||||
Corporate obligations
|
6,105
|
|
|
|
|
|
5,881
|
|
|
224
|
|
||||
Equity securities
|
1,706
|
|
|
|
|
|
|
1,706
|
|
||||||
Total available for sale
|
498,104
|
|
|
21,184
|
|
|
5,945
|
|
|
513,343
|
|
||||
Held to maturity at December 31, 2012
|
|
|
|
|
|
|
|
||||||||
State and municipal
|
117,227
|
|
|
5,489
|
|
|
1
|
|
|
122,715
|
|
||||
U.S. Government-sponsored mortgage-backed securities
|
243,793
|
|
|
11,681
|
|
|
15
|
|
|
255,459
|
|
||||
Total held to maturity
|
361,020
|
|
|
17,170
|
|
|
16
|
|
|
378,174
|
|
||||
Total Investment Securities
|
$
|
859,124
|
|
|
$
|
38,354
|
|
|
$
|
5,961
|
|
|
$
|
891,517
|
|
|
2014
|
|
2013
|
|
2012
|
|||||||||||||||
(Dollars in Thousands)
|
Cost
|
|
Yield
|
|
Cost
|
|
Yield
|
|
Cost
|
|
Yield
|
|||||||||
Federal Reserve and Federal Home Loan Bank stock at December 31:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Federal Reserve Bank stock
|
$
|
18,949
|
|
|
6.0
|
%
|
|
$
|
13,287
|
|
|
6.0
|
%
|
|
$
|
13,261
|
|
|
6.0
|
%
|
Federal Home Loan Bank stock
|
22,404
|
|
|
5.1
|
%
|
|
25,703
|
|
|
2.0
|
%
|
|
19,524
|
|
|
2.0
|
%
|
|||
Total
|
$
|
41,353
|
|
|
5.5
|
%
|
|
$
|
38,990
|
|
|
3.4
|
%
|
|
$
|
32,785
|
|
|
3.6
|
%
|
|
Within 1 Year
|
|
1-5 Years
|
|
5-10 Years
|
|||||||||||||||
(Dollars in Thousands)
|
Amount
|
|
Yield
(1)
|
|
Amount
|
|
Yield
(1)
|
|
Amount
|
|
Yield
(1)
|
|||||||||
Securities available for sale December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
U.S. Government-sponsored agency securities
|
|
|
|
|
$
|
109
|
|
|
4.9
|
%
|
|
|
|
|
||||||
State and municipal
|
$
|
3,122
|
|
|
5.0
|
%
|
|
9,731
|
|
|
5.3
|
%
|
|
$
|
50,889
|
|
|
5.5
|
%
|
|
Corporate obligations
|
31
|
|
|
0.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|||||
|
$
|
3,153
|
|
|
5.0
|
%
|
|
$
|
9,840
|
|
|
5.3
|
%
|
|
$
|
50,889
|
|
|
5.5
|
%
|
|
Due After Ten Years
|
|
Equity and U.S. Government-
Sponsored Mortgage - Backed Securities |
|
Total
|
|||||||||||||||
|
Amount
|
|
Yield
(1)
|
|
Amount
|
|
Yield
(1)
|
|
Amount
|
|
Yield
(1)
|
|||||||||
U.S. Government-sponsored agency securities
|
|
|
|
|
|
|
|
|
$
|
109
|
|
|
4.9
|
%
|
||||||
State and municipal
|
$
|
164,851
|
|
|
5.3
|
%
|
|
|
|
|
|
228,593
|
|
|
5.3
|
%
|
||||
Equity securities
|
|
|
|
|
$
|
1,706
|
|
|
1.8
|
%
|
|
1,706
|
|
|
1.8
|
%
|
||||
Corporate obligations
|
|
|
|
|
|
|
|
|
|
|
31
|
|
|
—
|
%
|
|||||
U.S. Government-sponsored mortgage-backed securities
|
|
|
|
|
319,104
|
|
|
2.9
|
%
|
|
319,104
|
|
|
2.9
|
%
|
|||||
|
$
|
164,851
|
|
|
5.3
|
%
|
|
$
|
320,810
|
|
|
2.9
|
%
|
|
$
|
549,543
|
|
|
3.9
|
%
|
|
Within 1 Year
|
|
1-5 Years
|
|
5-10 Years
|
|||||||||||||||
|
Amount
|
|
Yield
(1)
|
|
Amount
|
|
Yield
(1)
|
|
Amount
|
|
Yield
(1)
|
|||||||||
Securities held to maturity at December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
State and municipal
|
$
|
6,258
|
|
|
3.2
|
%
|
|
$
|
18,440
|
|
|
4.4
|
%
|
|
$
|
85,997
|
|
|
6.1
|
%
|
U.S. Government-sponsored mortgage-backed securities
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
$
|
6,258
|
|
|
3.2
|
%
|
|
$
|
18,440
|
|
|
4.4
|
%
|
|
$
|
85,997
|
|
|
6.1
|
%
|
|
Due After Ten Years
|
|
Equity and U.S. Government-
Sponsored Mortgage - Backed Securities |
|
Total
|
|||||||||||||||
|
Amount
|
|
Yield
(1)
|
|
Amount
|
|
Yield
(1)
|
|
Amount
|
|
Yield
(1)
|
|||||||||
State and municipal
|
$
|
93,748
|
|
|
5.2
|
%
|
|
|
|
|
|
$
|
204,443
|
|
|
5.4
|
%
|
|||
U.S. Government-sponsored mortgage-backed securities
|
|
|
|
|
$
|
426,645
|
|
|
2.9
|
%
|
|
426,645
|
|
|
2.9
|
%
|
||||
|
$
|
93,748
|
|
|
5.2
|
%
|
|
$
|
426,645
|
|
|
2.9
|
%
|
|
$
|
631,088
|
|
|
3.7
|
%
|
|
Less than
12 Months |
|
12 Months
or Longer |
|
Total
|
||||||||||||||||||
|
Fair
Value |
|
Gross
Unrealized Losses |
|
Fair
Value |
|
Gross
Unrealized Losses |
|
Fair
Value |
|
Gross
Unrealized Losses |
||||||||||||
Temporarily Impaired Available for Sale Securities at December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
State and municipal
|
$
|
1,256
|
|
|
$
|
7
|
|
|
$
|
9,850
|
|
|
$
|
116
|
|
|
$
|
11,106
|
|
|
$
|
123
|
|
U.S. Government-sponsored mortgage-backed securities
|
2,186
|
|
|
13
|
|
|
5,447
|
|
|
114
|
|
|
7,633
|
|
|
127
|
|
||||||
Total temporarily impaired available for sale securities
|
3,442
|
|
|
20
|
|
|
15,297
|
|
|
230
|
|
|
18,739
|
|
|
250
|
|
||||||
Temporarily Impaired Held to Maturity Securities at December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
State and municipal
|
5,119
|
|
|
96
|
|
|
250
|
|
|
|
|
5,369
|
|
|
96
|
|
|||||||
U.S. Government-sponsored mortgage-backed securities
|
9,791
|
|
|
82
|
|
|
38,491
|
|
|
430
|
|
|
48,282
|
|
|
512
|
|
||||||
Total temporarily impaired held to maturity securities
|
14,910
|
|
|
178
|
|
|
38,741
|
|
|
430
|
|
|
53,651
|
|
|
608
|
|
||||||
Total temporarily impaired investment securities
|
$
|
18,352
|
|
|
$
|
198
|
|
|
$
|
54,038
|
|
|
$
|
660
|
|
|
$
|
72,390
|
|
|
$
|
858
|
|
|
Less than
12 Months |
|
12 Months
or Longer |
|
Total
|
||||||||||||||||||
|
Fair
Value |
|
Gross
Unrealized Losses |
|
Fair
Value |
|
Gross
Unrealized Losses |
|
Fair
Value |
|
Gross
Unrealized Losses |
||||||||||||
Temporarily Impaired Available for Sale Securities at December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury
|
$
|
4,875
|
|
|
$
|
21
|
|
|
|
|
|
|
$
|
4,875
|
|
|
$
|
21
|
|
||||
U.S. Government-sponsored agency securities
|
3,433
|
|
|
17
|
|
|
|
|
|
|
3,433
|
|
|
17
|
|
||||||||
State and municipal
|
111,791
|
|
|
3,840
|
|
|
$
|
583
|
|
|
$
|
56
|
|
|
112,374
|
|
|
3,896
|
|
||||
U.S. Government-sponsored mortgage-backed securities
|
117,866
|
|
|
1,701
|
|
|
2,683
|
|
|
272
|
|
|
120,549
|
|
|
1,973
|
|
||||||
Corporate obligations
|
|
|
|
|
2,711
|
|
|
3,636
|
|
|
2,711
|
|
|
3,636
|
|
||||||||
Total Temporarily Impaired Available for Sale Securities
|
237,965
|
|
|
5,579
|
|
|
5,977
|
|
|
3,964
|
|
|
243,942
|
|
|
9,543
|
|
||||||
Temporarily Impaired Held to Maturity Securities at December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
State and municipal
|
17,318
|
|
|
91
|
|
|
184
|
|
|
|
|
17,502
|
|
|
91
|
|
|||||||
U.S. Government-sponsored mortgage-backed securities
|
213,048
|
|
|
3,462
|
|
|
2,640
|
|
|
260
|
|
|
215,688
|
|
|
3,722
|
|
||||||
Total temporarily impaired held to maturity securities
|
230,366
|
|
|
3,553
|
|
|
2,824
|
|
|
260
|
|
|
233,190
|
|
|
3,813
|
|
||||||
Total temporarily impaired investment securities
|
$
|
468,331
|
|
|
$
|
9,132
|
|
|
$
|
8,801
|
|
|
$
|
4,224
|
|
|
$
|
477,132
|
|
|
$
|
13,356
|
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|||||||||||||||||||||||||
(Dollars in Thousands)
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|||||||||||||||
Loans at December 31:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial and industrial loans
|
$
|
896,688
|
|
|
22.8
|
%
|
|
$
|
761,705
|
|
|
21.0
|
%
|
|
$
|
622,579
|
|
|
21.5
|
%
|
|
$
|
532,523
|
|
|
19.6
|
%
|
|
$
|
530,322
|
|
|
18.7
|
%
|
Agricultural production financing
and other loans to farmers |
104,927
|
|
|
2.7
|
|
|
114,348
|
|
|
3.1
|
|
|
112,527
|
|
|
3.9
|
|
|
104,526
|
|
|
3.9
|
|
|
95,516
|
|
|
3.4
|
|
|||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Construction
|
207,221
|
|
|
5.3
|
|
|
177,082
|
|
|
4.9
|
|
|
98,639
|
|
|
3.4
|
|
|
81,780
|
|
|
3.0
|
|
|
106,615
|
|
|
3.8
|
|
|||||
Commercial and farmland
|
1,672,661
|
|
|
42.6
|
|
|
1,611,809
|
|
|
44.4
|
|
|
1,266,682
|
|
|
43.6
|
|
|
1,194,230
|
|
|
44.0
|
|
|
1,229,037
|
|
|
43.3
|
|
|||||
Residential
|
647,315
|
|
|
16.5
|
|
|
616,385
|
|
|
17.0
|
|
|
473,537
|
|
|
16.3
|
|
|
481,493
|
|
|
17.7
|
|
|
522,051
|
|
|
18.4
|
|
|||||
Home equity
|
286,529
|
|
|
7.3
|
|
|
255,223
|
|
|
7.0
|
|
|
203,406
|
|
|
7.0
|
|
|
191,631
|
|
|
7.1
|
|
|
201,969
|
|
|
7.1
|
|
|||||
Individuals' loans for household and
other personal expenditures |
73,400
|
|
|
1.9
|
|
|
69,783
|
|
|
1.9
|
|
|
75,748
|
|
|
2.6
|
|
|
84,172
|
|
|
3.1
|
|
|
115,295
|
|
|
4.1
|
|
|||||
Lease financing receivables, net of unearned income
|
1,106
|
|
|
|
|
|
1,545
|
|
|
|
|
|
2,590
|
|
|
0.1
|
|
|
3,555
|
|
|
0.1
|
|
|
5,157
|
|
|
0.2
|
|
|||||
Other loans
|
35,018
|
|
|
0.9
|
|
|
24,529
|
|
|
0.7
|
|
|
46,501
|
|
|
1.6
|
|
|
39,505
|
|
|
1.5
|
|
|
29,721
|
|
|
1.0
|
|
|||||
Loans
|
3,924,865
|
|
|
100.0
|
%
|
|
3,632,409
|
|
|
100.0
|
%
|
|
2,902,209
|
|
|
100.0
|
%
|
|
2,713,415
|
|
|
100.0
|
%
|
|
2,835,683
|
|
|
100.0
|
%
|
|||||
Allowance for loan losses
|
(63,964
|
)
|
|
|
|
(67,870
|
)
|
|
|
|
(69,366
|
)
|
|
|
|
(70,898
|
)
|
|
|
|
(82,977
|
)
|
|
|
||||||||||
Net Loans
|
$
|
3,860,901
|
|
|
|
|
$
|
3,564,539
|
|
|
|
|
$
|
2,832,843
|
|
|
|
|
$
|
2,642,517
|
|
|
|
|
$
|
2,752,706
|
|
|
|
(Dollars in Thousands)
|
Maturing
Within 1 Year |
|
Maturing
1-5 Years |
|
Maturing Over
5 Years |
|
Total
|
||||||||
Commercial and industrial loans
|
$
|
664,359
|
|
|
$
|
166,593
|
|
|
$
|
65,736
|
|
|
$
|
896,688
|
|
Agriculture production financing and other loans to farmers
|
87,738
|
|
|
16,334
|
|
|
855
|
|
|
104,927
|
|
||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Construction
|
188,337
|
|
|
14,819
|
|
|
4,065
|
|
|
207,221
|
|
||||
Commercial and farmland
|
651,626
|
|
|
797,429
|
|
|
223,606
|
|
|
1,672,661
|
|
||||
Other loans
|
5,778
|
|
|
10,529
|
|
|
18,711
|
|
|
35,018
|
|
||||
Total
|
$
|
1,597,838
|
|
|
$
|
1,005,704
|
|
|
$
|
312,973
|
|
|
$
|
2,916,515
|
|
(Dollars in Thousands)
|
Maturing
1-5 Years |
|
Maturing Over
5 Years |
||||
Loans maturing after one year with:
|
|
|
|
||||
Fixed rate
|
$
|
668,215
|
|
|
$
|
275,248
|
|
Variable rate
|
337,489
|
|
|
37,725
|
|
||
Total
|
$
|
1,005,704
|
|
|
$
|
312,973
|
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||||||||
(Dollars in Thousands)
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||
Non-Performing Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-accrual loans
|
$
|
48,789
|
|
|
$
|
56,402
|
|
|
$
|
53,399
|
|
|
$
|
69,592
|
|
|
$
|
90,591
|
|
Renegotiated loans
|
1,992
|
|
|
3,048
|
|
|
12,681
|
|
|
14,308
|
|
|
7,139
|
|
|||||
Non-performing loans (NPL)
|
50,781
|
|
|
59,450
|
|
|
66,080
|
|
|
83,900
|
|
|
97,730
|
|
|||||
Other real estate owned
|
19,293
|
|
|
22,246
|
|
|
13,263
|
|
|
16,289
|
|
|
20,927
|
|
|||||
Non-performing assets (NPA)
|
70,074
|
|
|
81,696
|
|
|
79,343
|
|
|
100,189
|
|
|
118,657
|
|
|||||
90+ days delinquent and still accruing
|
4,663
|
|
|
1,350
|
|
|
2,037
|
|
|
580
|
|
|
1,330
|
|
|||||
NPAs & 90+ days delinquent
|
$
|
74,737
|
|
|
$
|
83,046
|
|
|
$
|
81,380
|
|
|
$
|
100,769
|
|
|
$
|
119,987
|
|
Impaired loans
|
$
|
116,223
|
|
|
$
|
119,755
|
|
|
$
|
79,179
|
|
|
$
|
79,775
|
|
|
$
|
116,204
|
|
(Dollars in Thousands)
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||
Allowance for loans losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balances, January 1
|
$
|
67,870
|
|
|
$
|
69,366
|
|
|
$
|
70,898
|
|
|
$
|
82,977
|
|
|
$
|
92,131
|
|
Charge offs:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
(1)
|
7,246
|
|
|
6,117
|
|
|
8,311
|
|
|
9,818
|
|
|
22,832
|
|
|||||
Commercial real estate
(2)
|
6,608
|
|
|
7,493
|
|
|
12,322
|
|
|
29,807
|
|
|
32,823
|
|
|||||
Consumer
|
657
|
|
|
623
|
|
|
1,130
|
|
|
1,441
|
|
|
2,426
|
|
|||||
Residential
|
2,869
|
|
|
3,886
|
|
|
5,475
|
|
|
7,407
|
|
|
9,437
|
|
|||||
Finance leases
|
2
|
|
|
15
|
|
|
34
|
|
|
|
|
|
54
|
|
|||||
Total Charge Offs
|
17,382
|
|
|
18,134
|
|
|
27,272
|
|
|
48,473
|
|
|
67,572
|
|
|||||
Recoveries:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
(3)
|
5,435
|
|
|
4,586
|
|
|
1,744
|
|
|
8,828
|
|
|
6,750
|
|
|||||
Commercial real estate
(4)
|
3,297
|
|
|
3,552
|
|
|
3,652
|
|
|
2,811
|
|
|
1,420
|
|
|||||
Consumer
|
377
|
|
|
556
|
|
|
695
|
|
|
942
|
|
|
938
|
|
|||||
Residential
|
1,783
|
|
|
1,292
|
|
|
1,113
|
|
|
1,176
|
|
|
2,827
|
|
|||||
Finance leases
|
24
|
|
|
4
|
|
|
2
|
|
|
7
|
|
|
|
||||||
Total Recoveries
|
10,916
|
|
|
9,990
|
|
|
7,206
|
|
|
13,764
|
|
|
11,935
|
|
|||||
Net charge offs
|
6,466
|
|
|
8,144
|
|
|
20,066
|
|
|
34,709
|
|
|
55,637
|
|
|||||
Provisions for loan losses
|
2,560
|
|
|
6,648
|
|
|
18,534
|
|
|
22,630
|
|
|
46,483
|
|
|||||
Balance at December 31
|
$
|
63,964
|
|
|
$
|
67,870
|
|
|
$
|
69,366
|
|
|
$
|
70,898
|
|
|
$
|
82,977
|
|
Ratio of net charge offs during the period to average loans outstanding during the period
|
0.17
|
%
|
|
0.27
|
%
|
|
0.71
|
%
|
|
1.26
|
%
|
|
1.82
|
%
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|||||||||||||||||||||||||
(Dollars in Thousands)
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|||||||||||||||
Balance at December 31:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial
|
$
|
28,824
|
|
|
26.4
|
%
|
|
$
|
27,176
|
|
|
24.8
|
%
|
|
$
|
25,913
|
|
|
26.9
|
%
|
|
$
|
17,731
|
|
|
24.9
|
%
|
|
$
|
32,508
|
|
|
23.1
|
%
|
Commercial real estate
|
19,327
|
|
|
47.9
|
|
|
23,102
|
|
|
49.3
|
|
|
26,703
|
|
|
47.1
|
|
|
37,919
|
|
|
47.1
|
|
|
36,341
|
|
|
47.1
|
|
|||||
Consumer
|
2,658
|
|
|
1.9
|
|
|
2,515
|
|
|
1.9
|
|
|
2,593
|
|
|
2.6
|
|
|
2,902
|
|
|
3.1
|
|
|
3,622
|
|
|
4.1
|
|
|||||
Residential
|
13,152
|
|
|
23.8
|
|
|
15,077
|
|
|
24.0
|
|
|
14,157
|
|
|
23.3
|
|
|
12,343
|
|
|
24.8
|
|
|
10,408
|
|
|
25.5
|
|
|||||
Finance leases
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.1
|
|
|
3
|
|
|
0.1
|
|
|
98
|
|
|
0.2
|
|
|||||
Totals
|
$
|
63,964
|
|
|
100.0
|
%
|
|
$
|
67,870
|
|
|
100.0
|
%
|
|
$
|
69,366
|
|
|
100.0
|
%
|
|
$
|
70,898
|
|
|
100.0
|
%
|
|
$
|
82,977
|
|
|
100.0
|
%
|
(Dollars in Thousands) |
Maturing 3
Months or Less |
|
Maturing 3-6
Months |
|
Maturing 6-12
Months |
|
Maturing Over
12 Months |
|
Total
|
||||||||||
Certificates of deposit and other time deposits
|
$
|
50,767
|
|
|
$
|
33,463
|
|
|
$
|
60,380
|
|
|
$
|
116,075
|
|
|
$
|
260,685
|
|
Percent
|
19
|
%
|
|
13
|
%
|
|
23
|
%
|
|
45
|
%
|
|
100
|
%
|
(Dollars in Thousands)
|
2014
|
|
2013
|
|
2012
|
||||||
Balance at December 31:
|
|
|
|
|
|
||||||
Federal funds purchased
|
$
|
15,381
|
|
|
$
|
125,645
|
|
|
$
|
18,862
|
|
Securities sold under repurchase agreements (short-term portion)
|
124,539
|
|
|
148,672
|
|
|
131,828
|
|
|||
Federal Home Loan Bank advances (short-term portion)
|
30,701
|
|
|
26,272
|
|
|
1,434
|
|
|||
Subordinated debentures and term loans (short-term portion)
|
108
|
|
|
105
|
|
459
|
|
||||
Total short-term borrowings
|
$
|
170,729
|
|
|
$
|
300,694
|
|
|
$
|
152,583
|
|
(Dollars in Thousands)
|
2014
|
|
2013
|
|
2012
|
||||||
Weighted Average Interest Rate on Outstanding Balance at December 31:
|
|
|
|
|
|
||||||
Federal funds purchased
|
0.3
|
%
|
|
0.3
|
%
|
|
0.2
|
%
|
|||
Securities sold under repurchase agreements (short-term portion)
|
0.3
|
%
|
|
0.5
|
%
|
|
0.2
|
%
|
|||
Federal Home Loan Bank advances (short-term portion)
|
2.0
|
%
|
|
1.1
|
%
|
|
2.0
|
%
|
|||
Subordinated debentures and term loans (short-term portion)
|
|
|
|
|
|
|
|
||||
Total short-term borrowings
|
0.6
|
%
|
|
0.5
|
%
|
|
0.2
|
%
|
|||
Weighted Average Interest Rate During the Year:
|
|
|
|
|
|
||||||
Federal funds purchased
|
0.4
|
%
|
|
0.4
|
%
|
|
0.3
|
%
|
|||
Securities sold under repurchase agreements (short-term portion)
|
0.4
|
%
|
|
0.6
|
%
|
|
0.3
|
%
|
|||
Federal Home Loan Bank advances (short-term portion)
|
0.9
|
%
|
|
0.8
|
%
|
|
3.4
|
%
|
|||
Subordinated debentures and term loans (short-term portion)
|
|
|
|
|
|
2.9
|
%
|
||||
Total short-term borrowings
|
0.6
|
%
|
|
0.6
|
%
|
|
0.9
|
%
|
|||
Highest Amount Outstanding at Any Month End During the Year:
|
|
|
|
|
|
||||||
Federal funds purchased
|
$
|
121,192
|
|
|
$
|
125,645
|
|
|
$
|
87,571
|
|
Securities sold under repurchase agreements (short-term portion)
|
155,941
|
|
|
151,813
|
|
|
150,126
|
|
|||
Federal Home Loan Bank advances (short-term portion)
|
190,709
|
|
|
76,272
|
|
|
52,504
|
|
|||
Subordinated debentures and term loans (short-term portion)
|
470
|
|
|
459
|
|
|
79,467
|
|
|||
Total short-term borrowings
|
$
|
468,312
|
|
|
$
|
354,189
|
|
|
$
|
369,668
|
|
Average Amount Outstanding During the year:
|
|
|
|
|
|
||||||
Federal funds purchased
|
$
|
44,674
|
|
|
$
|
26,789
|
|
|
$
|
20,072
|
|
Securities sold under repurchase agreements (short-term portion)
|
130,910
|
|
|
140,126
|
|
|
134,555
|
|
|||
Federal Home Loan Bank advances (short-term portion)
|
96,284
|
|
|
22,807
|
|
|
20,869
|
|
|||
Subordinated debentures and term loans (short-term portion)
|
232
|
|
|
187
|
|
|
19,337
|
|
|||
Total short-term borrowings
|
$
|
272,100
|
|
|
$
|
189,909
|
|
|
$
|
194,833
|
|
•
|
Changes in the domestic interest rate environment could reduce the Corporation’s net interest income.
|
•
|
Changes in the laws, regulations and policies governing banks and financial services companies could alter the Corporation’s business environment and adversely affect operations.
|
•
|
The banking and financial services industry is highly competitive, and competitive pressures could intensify and adversely affect the Corporation’s financial results.
|
•
|
Acts or threats of terrorism and political or military actions taken by the United States or other governments could adversely affect general economic or industry conditions.
|
•
|
The Corporation’s allowance for loan losses may not be adequate to cover actual losses.
|
•
|
The Corporation may suffer losses in its loan portfolio despite its underwriting practices.
|
•
|
The Corporation faces operational risks because the nature of the financial services business involves a high volume of transactions.
|
•
|
A natural disaster could harm the Corporation’s business.
|
•
|
The Corporation faces systems failure risks as well as security risks, including “hacking” and “identity theft”.
|
•
|
The Corporation relies on dividends from its subsidiaries for its liquidity needs.
|
•
|
The Corporation’s reported financial results depend on management’s selection of accounting methods and certain assumptions and estimates.
|
•
|
A write-down of all or part of the Corporation’s goodwill could materially reduce its net income and net worth.
|
•
|
Changes in accounting standards could materially impact the Corporation’s financial statements.
|
•
|
Significant legal actions could subject the Corporation to substantial uninsured liabilities.
|
•
|
Negative publicity could damage the Corporation’s reputation and adversely impact its business and financial results.
|
•
|
Acquisitions may not produce revenue enhancements or cost savings at levels or within timeframes originally anticipated and may result in unforeseen integration difficulties.
|
•
|
The Corporation may not be able to pay dividends in the future in accordance with past practice.
|
•
|
The Corporation’s stock price can be volatile.
|
|
|
|
|
Period Ending
|
|
|
||||||||||||||||||
Index
|
|
12/31/2009
|
|
|
12/31/2010
|
|
|
12/31/2011
|
|
|
12/31/2012
|
|
|
12/31/2013
|
|
|
12/31/2014
|
|
||||||
First Merchants Corporation
|
|
$
|
100.00
|
|
|
$
|
149.93
|
|
|
$
|
144.04
|
|
|
$
|
254.35
|
|
|
$
|
393.46
|
|
|
$
|
399.45
|
|
Russell 2000
|
|
100.00
|
|
|
126.86
|
|
|
121.56
|
|
|
141.43
|
|
|
196.34
|
|
|
205.95
|
|
||||||
SNL Bank $1B-$5B
|
|
100.00
|
|
|
113.35
|
|
|
103.38
|
|
|
127.47
|
|
|
185.36
|
|
|
193.81
|
|
||||||
SNL Bank $5B-$10B
|
|
100.00
|
|
|
108.48
|
|
|
107.66
|
|
|
126.64
|
|
|
195.38
|
|
|
201.25
|
|
|
|
Price Per Share
|
|
|
|
|
||||||||||||||||||
|
|
HIGH
|
|
LOW
|
|
Dividends Declared
(1)
|
||||||||||||||||||
Quarter
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||||||
First quarter
|
|
$
|
22.66
|
|
|
$
|
15.97
|
|
|
$
|
19.74
|
|
|
$
|
14.51
|
|
|
$
|
0.05
|
|
|
$
|
0.03
|
|
Second quarter
|
|
22.80
|
|
|
17.48
|
|
|
19.38
|
|
|
14.08
|
|
|
0.08
|
|
|
0.05
|
|
||||||
Third quarter
|
|
22.10
|
|
|
19.15
|
|
|
19.46
|
|
|
16.67
|
|
|
0.08
|
|
|
0.05
|
|
||||||
Fourth quarter
|
|
23.39
|
|
|
23.35
|
|
|
19.94
|
|
|
17.34
|
|
|
0.08
|
|
|
0.05
|
|
Plan Category
|
|
Number of securities to be
issued upon exercise of outstanding options, warrants and rights |
|
Weighted-average
exercised price of outstanding options warrants and rights |
|
Number of securities remaining
available for future issuance under equity compensations plans (excluding securities reflected in first column) |
||||
Equity compensation plans approved by stockholders
|
|
737,931
|
|
|
$
|
20.99
|
|
|
752,634
|
|
Total
|
|
737,931
|
|
|
$
|
20.99
|
|
|
752,634
|
|
(Dollars in Thousands, Except Share Data)
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||
Operations
(1) (2) (3)
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income fully taxable equivalent (FTE) basis
|
$
|
194,958
|
|
|
$
|
160,308
|
|
|
$
|
158,081
|
|
|
$
|
149,114
|
|
|
$
|
149,434
|
|
Less tax equivalent adjustment
|
7,921
|
|
|
6,043
|
|
|
5,745
|
|
|
5,759
|
|
|
5,865
|
|
|||||
Net interest income
|
187,037
|
|
|
154,265
|
|
|
152,336
|
|
|
143,355
|
|
|
143,569
|
|
|||||
Provision for loan losses
|
2,560
|
|
|
6,648
|
|
|
18,534
|
|
|
22,630
|
|
|
46,483
|
|
|||||
Net interest income after provision for loan losses
|
184,477
|
|
|
147,617
|
|
|
133,802
|
|
|
120,725
|
|
|
97,086
|
|
|||||
Total other income
|
65,667
|
|
|
54,809
|
|
|
64,302
|
|
|
49,120
|
|
|
48,544
|
|
|||||
Total other expenses
|
168,592
|
|
|
143,219
|
|
|
137,115
|
|
|
135,938
|
|
|
142,311
|
|
|||||
Income before income tax expense (benefit)
|
81,552
|
|
|
59,207
|
|
|
60,989
|
|
|
33,907
|
|
|
3,319
|
|
|||||
Income tax expense (benefit)
|
21,390
|
|
|
14,677
|
|
|
15,867
|
|
|
8,655
|
|
|
(3,590
|
)
|
|||||
Net income
|
60,162
|
|
|
44,530
|
|
|
45,122
|
|
|
25,252
|
|
|
6,909
|
|
|||||
Gain on exchange of preferred stock to trust preferred debt
|
|
|
|
|
|
|
|
|
11,353
|
|
|||||||||
Loss on CPP unamortized discount
|
|
|
|
|
|
|
(1,401
|
)
|
|
(1,301
|
)
|
||||||||
Loss on extinguishment of trust preferred securities
|
|
|
|
|
|
|
(10,857
|
)
|
|
|
|||||||||
Preferred stock dividends and discount accretion
|
|
|
(2,380
|
)
|
|
(4,539
|
)
|
|
(3,981
|
)
|
|
(5,239
|
)
|
||||||
Net income available to common stockholders
|
$
|
60,162
|
|
|
$
|
42,150
|
|
|
$
|
40,583
|
|
|
$
|
9,013
|
|
|
$
|
11,722
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Per Share Data
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic net income available to common stockholders
|
$
|
1.66
|
|
|
$
|
1.42
|
|
|
$
|
1.42
|
|
|
$
|
0.34
|
|
|
$
|
0.48
|
|
Diluted net income available to common stockholders
|
1.65
|
|
|
1.41
|
|
|
1.41
|
|
|
0.34
|
|
|
0.48
|
|
|||||
Cash dividends paid - common
|
0.29
|
|
|
0.18
|
|
|
0.10
|
|
|
0.04
|
|
|
0.04
|
|
|||||
December 31 book value - common
|
19.29
|
|
|
17.67
|
|
|
16.08
|
|
|
14.83
|
|
|
15.11
|
|
|||||
December 31 tangible book value - common
|
13.65
|
|
|
12.17
|
|
|
10.95
|
|
|
9.64
|
|
|
9.21
|
|
|||||
December 31 market value (bid price) - common
|
22.75
|
|
|
22.72
|
|
|
14.84
|
|
|
8.47
|
|
|
8.86
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Average Balances
(1) (2) (3)
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
5,571,354
|
|
|
$
|
4,455,411
|
|
|
$
|
4,245,996
|
|
|
$
|
4,143,850
|
|
|
$
|
4,271,715
|
|
Total Loans
(4)
|
3,730,080
|
|
|
3,008,555
|
|
|
2,819,816
|
|
|
2,748,684
|
|
|
3,050,850
|
|
|||||
Earning assets
|
4,985,338
|
|
|
4,017,247
|
|
|
3,833,174
|
|
|
3,744,027
|
|
|
3,862,493
|
|
|||||
Total deposits
|
4,363,955
|
|
|
3,465,640
|
|
|
3,263,020
|
|
|
3,175,762
|
|
|
3,337,747
|
|
|||||
Total stockholders' equity
|
675,295
|
|
|
540,255
|
|
|
535,497
|
|
|
478,440
|
|
|
470,379
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Year-End Balances
(1) (2) (3)
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
5,824,127
|
|
|
$
|
5,437,262
|
|
|
$
|
4,304,821
|
|
|
$
|
4,173,076
|
|
|
$
|
4,170,848
|
|
Total Loans
(4)
|
3,932,100
|
|
|
3,637,740
|
|
|
2,924,509
|
|
|
2,731,279
|
|
|
2,857,152
|
|
|||||
Allowance for loan losses
|
63,964
|
|
|
67,870
|
|
|
69,366
|
|
|
70,898
|
|
|
82,977
|
|
|||||
Total deposits
|
4,640,694
|
|
|
4,231,468
|
|
|
3,346,383
|
|
|
3,134,655
|
|
|
3,268,880
|
|
|||||
Total stockholders' equity
|
726,827
|
|
|
634,923
|
|
|
552,236
|
|
|
514,467
|
|
|
454,408
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Ratios
(1) (2) (3)
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets
|
1.08
|
%
|
|
0.95
|
%
|
|
0.96
|
%
|
|
0.22
|
%
|
|
0.27
|
%
|
|||||
Return on average stockholders' equity
|
8.91
|
|
|
7.80
|
|
|
7.58
|
|
|
1.88
|
|
|
2.49
|
|
|||||
Average earning assets to total assets
|
89.48
|
|
|
90.17
|
|
|
90.28
|
|
|
90.35
|
|
|
90.42
|
|
|||||
Allowance for loan losses as % of total loans
|
1.63
|
|
|
1.87
|
|
|
2.37
|
|
|
2.60
|
|
|
2.90
|
|
|||||
Dividend payout ratio
|
17.58
|
|
|
12.77
|
|
|
7.09
|
|
|
11.76
|
|
|
8.33
|
|
|||||
Average stockholders' equity to average assets
|
12.12
|
|
|
12.13
|
|
|
12.61
|
|
|
11.55
|
|
|
11.01
|
|
|||||
Tax equivalent yield on earning assets
|
4.35
|
|
|
4.40
|
|
|
4.74
|
|
|
4.99
|
|
|
5.32
|
|
|||||
Cost of supporting liabilities
|
0.44
|
|
|
0.41
|
|
|
0.62
|
|
|
1.01
|
|
|
1.45
|
|
|||||
Net interest margin on earning assets
|
3.91
|
|
|
3.99
|
|
|
4.12
|
|
|
3.98
|
|
|
3.87
|
|
|
Average Balance
|
|
Interest
Income / Expense |
|
Average
Rate |
|
Average Balance
|
|
Interest
Income / Expense |
|
Average
Rate |
|
Average Balance
|
|
Interest
Income / Expense |
|
Average
Rate |
|||||||||||||||
(Dollars in Thousands)
|
2014
|
|
2013
|
|
2012
|
|||||||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing deposits
|
$
|
53,231
|
|
|
$
|
124
|
|
|
0.2
|
%
|
|
$
|
74,964
|
|
|
$
|
158
|
|
|
0.2
|
%
|
|
57,842
|
|
|
100
|
|
|
0.2
|
%
|
||
Federal reserve and federal home loan bank stock
|
42,142
|
|
|
2,124
|
|
|
5.0
|
|
|
33,620
|
|
|
1,488
|
|
|
4.4
|
|
|
32,819
|
|
|
1,408
|
|
|
4.3
|
|
||||||
Securities:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Taxable
|
763,450
|
|
|
19,882
|
|
|
2.6
|
|
|
617,524
|
|
|
15,214
|
|
|
2.5
|
|
|
670,973
|
|
|
17,027
|
|
|
2.5
|
|
||||||
Tax-Exempt
(2)
|
396,435
|
|
|
22,127
|
|
|
5.6
|
|
|
282,584
|
|
|
16,660
|
|
|
5.9
|
|
|
251,724
|
|
|
15,675
|
|
|
6.2
|
|
||||||
Total securities
|
1,159,885
|
|
|
42,009
|
|
|
3.6
|
|
|
900,108
|
|
|
31,874
|
|
|
3.5
|
|
|
922,697
|
|
|
32,702
|
|
|
3.5
|
|
||||||
Loans held for sale
|
6,681
|
|
|
485
|
|
|
7.3
|
|
|
16,137
|
|
|
770
|
|
|
4.8
|
|
|
20,648
|
|
|
1,024
|
|
|
5.0
|
|
||||||
Loans:
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial
|
2,919,020
|
|
|
133,567
|
|
|
4.6
|
|
|
2,391,221
|
|
|
113,613
|
|
|
4.8
|
|
|
2,166,238
|
|
|
114,078
|
|
|
5.3
|
|
||||||
Real estate mortgage
|
429,384
|
|
|
19,812
|
|
|
4.6
|
|
|
277,520
|
|
|
12,375
|
|
|
4.5
|
|
|
293,384
|
|
|
13,848
|
|
|
4.7
|
|
||||||
Installment
|
361,484
|
|
|
18,175
|
|
|
5.0
|
|
|
308,233
|
|
|
15,994
|
|
|
5.2
|
|
|
324,553
|
|
|
17,795
|
|
|
5.5
|
|
||||||
Tax-Exempt
(2)
|
13,511
|
|
|
504
|
|
|
3.7
|
|
|
15,444
|
|
|
605
|
|
|
3.9
|
|
|
14,993
|
|
|
739
|
|
|
4.9
|
|
||||||
Total loans
|
3,730,080
|
|
|
172,543
|
|
|
4.6
|
|
|
3,008,555
|
|
|
143,357
|
|
|
4.8
|
|
|
2,819,816
|
|
|
147,484
|
|
|
5.2
|
|
||||||
Total earning assets
|
4,985,338
|
|
|
216,800
|
|
|
4.3
|
%
|
|
4,017,247
|
|
|
176,877
|
|
|
4.4
|
%
|
|
3,833,174
|
|
|
181,694
|
|
|
4.7
|
%
|
||||||
Net unrealized gain on securities available for sale
|
8,921
|
|
|
|
|
|
|
4,521
|
|
|
|
|
|
|
16,116
|
|
|
|
|
|
||||||||||||
Allowance for loan losses
|
(67,969
|
)
|
|
|
|
|
|
(68,806
|
)
|
|
|
|
|
|
(71,038
|
)
|
|
|
|
|
||||||||||||
Cash and due from banks
|
87,068
|
|
|
|
|
|
|
73,161
|
|
|
|
|
|
|
66,109
|
|
|
|
|
|
||||||||||||
Premises and equipment
|
75,202
|
|
|
|
|
|
|
57,228
|
|
|
|
|
|
|
51,692
|
|
|
|
|
|
||||||||||||
Other assets
|
482,794
|
|
|
|
|
|
|
372,060
|
|
|
|
|
|
|
349,943
|
|
|
|
|
|
||||||||||||
Total assets
|
$
|
5,571,354
|
|
|
|
|
|
|
$
|
4,455,411
|
|
|
|
|
|
|
$
|
4,245,996
|
|
|
|
|
|
|||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
NOW accounts
|
$
|
1,066,402
|
|
|
$
|
1,110
|
|
|
0.1
|
%
|
|
$
|
880,323
|
|
|
$
|
941
|
|
|
0.1
|
%
|
|
$
|
814,831
|
|
|
$
|
1,007
|
|
|
0.1
|
%
|
Money market deposit accounts
|
776,712
|
|
|
1,572
|
|
|
0.2
|
|
|
603,012
|
|
|
1,287
|
|
|
0.2
|
|
|
501,537
|
|
|
1,370
|
|
|
0.3
|
|
||||||
Savings deposits
|
533,080
|
|
|
619
|
|
|
0.1
|
|
|
377,106
|
|
|
421
|
|
|
0.1
|
|
|
327,644
|
|
|
528
|
|
|
0.2
|
|
||||||
Certificates and other time deposits
|
1,042,539
|
|
|
8,377
|
|
|
0.8
|
|
|
807,764
|
|
|
7,404
|
|
|
0.9
|
|
|
935,713
|
|
|
11,895
|
|
|
1.3
|
|
||||||
Total interest-bearing deposits
|
3,418,733
|
|
|
11,678
|
|
|
0.3
|
|
|
2,668,205
|
|
|
10,053
|
|
|
0.4
|
|
|
2,579,725
|
|
|
14,800
|
|
|
0.6
|
|
||||||
Borrowings
|
492,128
|
|
|
10,164
|
|
|
2.1
|
|
|
400,580
|
|
|
6,516
|
|
|
1.6
|
|
|
411,915
|
|
|
8,813
|
|
|
2.1
|
|
||||||
Total interest-bearing liabilities
|
3,910,861
|
|
|
21,842
|
|
|
0.6
|
|
|
3,068,785
|
|
|
16,569
|
|
|
0.5
|
|
|
2,991,640
|
|
|
23,613
|
|
|
0.8
|
|
||||||
Noninterest-bearing deposits
|
945,222
|
|
|
|
|
|
|
797,435
|
|
|
|
|
|
|
683,295
|
|
|
|
|
|
||||||||||||
Other liabilities
|
39,976
|
|
|
|
|
|
|
48,936
|
|
|
|
|
|
|
35,564
|
|
|
|
|
|
||||||||||||
Total liabilities
|
4,896,059
|
|
|
|
|
|
|
3,915,156
|
|
|
|
|
|
|
3,710,499
|
|
|
|
|
|
||||||||||||
Stockholders' Equity
|
675,295
|
|
|
|
|
|
|
540,255
|
|
|
|
|
|
|
535,497
|
|
|
|
|
|
||||||||||||
Total Liabilities and Stockholders' Equity
|
$
|
5,571,354
|
|
|
21,842
|
|
|
0.4
|
|
|
$
|
4,455,411
|
|
|
16,569
|
|
|
0.4
|
|
|
$
|
4,245,996
|
|
|
23,613
|
|
|
0.6
|
|
|||
Net Interest Income
|
|
|
$
|
194,958
|
|
|
|
|
|
|
$
|
160,308
|
|
|
|
|
|
|
$
|
158,081
|
|
|
|
|||||||||
Net Interest Margin
|
|
|
|
|
3.9
|
%
|
|
|
|
|
|
4.0
|
%
|
|
|
|
|
|
4.1
|
%
|
|
December 31,
|
|
December 31,
|
||||
(Dollars in Thousands, Except Per Share Amounts)
|
2014
|
|
2013
|
||||
Average goodwill
|
$
|
191,033
|
|
|
$
|
147,785
|
|
Average core deposit intangible (CDI)
|
13,323
|
|
|
8,367
|
|
||
Average deferred tax on CDI
|
(5,002
|
)
|
|
(2,633
|
)
|
||
Intangible adjustment
|
$
|
199,354
|
|
|
$
|
153,519
|
|
Average stockholders' equity (GAAP capital)
|
$
|
675,295
|
|
|
$
|
540,225
|
|
Average cumulative preferred stock
|
(125
|
)
|
|
(125
|
)
|
||
Average non-cumulative preferred stock issued under the small business lending fund
|
|
|
|
(47,412
|
)
|
||
Intangible adjustment
|
(199,354
|
)
|
|
(153,519
|
)
|
||
Average tangible capital
|
$
|
475,816
|
|
|
$
|
339,169
|
|
Average assets
|
$
|
5,571,354
|
|
|
$
|
4,455,411
|
|
Intangible adjustment
|
(199,354
|
)
|
|
(153,519
|
)
|
||
Average tangible assets
|
$
|
5,372,000
|
|
|
$
|
4,301,892
|
|
Net Income available to common stockholders
|
$
|
60,162
|
|
|
$
|
42,150
|
|
CDI amortization, net of tax
|
1,395
|
|
|
892
|
|
||
Tangible net income (loss) available to common stockholders
|
$
|
61,557
|
|
|
$
|
43,042
|
|
Diluted earnings per share
|
$
|
1.65
|
|
|
$
|
1.41
|
|
Diluted tangible earnings per share
|
$
|
1.68
|
|
|
$
|
1.43
|
|
Return on average GAAP capital
|
8.91
|
%
|
|
7.80
|
%
|
||
Return on average tangible capital
|
12.94
|
%
|
|
12.69
|
%
|
||
Return on average assets
|
1.08
|
%
|
|
0.95
|
%
|
||
Return on average tangible assets
|
1.15
|
%
|
|
1.00
|
%
|
|
December 31,
|
|
December 31,
|
||||
(Dollars in Thousands)
|
2014
|
|
2013
|
||||
Non-Performing Assets:
|
|
|
|
||||
Non-accrual loans
|
$
|
48,789
|
|
|
$
|
56,402
|
|
Renegotiated loans
|
1,992
|
|
|
3,048
|
|
||
Non-performing loans (NPL)
|
50,781
|
|
|
59,450
|
|
||
Other real estate owned
|
19,293
|
|
|
22,246
|
|
||
Non-performing assets (NPA)
|
70,074
|
|
|
81,696
|
|
||
90+ days delinquent and still accruing
|
4,663
|
|
|
1,350
|
|
||
NPAs & 90+ days delinquent
|
$
|
74,737
|
|
|
$
|
83,046
|
|
Impaired loans (includes substandard, doubtful and loss)
|
$
|
116,223
|
|
|
$
|
119,755
|
|
|
December 31,
|
|
December 31,
|
||||
(Dollars in Thousands)
|
2014
|
|
2013
|
||||
Non Performing Assets and 90+ Days Delinquent:
|
|
|
|
||||
Commercial and industrial loans
|
$
|
10,033
|
|
|
$
|
9,317
|
|
Agricultural production financing and other loans to farmers
|
5,800
|
|
|
30
|
|
||
Real estate loans
|
|
|
|
||||
Construction
|
8,363
|
|
|
12,730
|
|
||
Commercial and farmland
|
30,400
|
|
|
43,229
|
|
||
Residential
|
17,079
|
|
|
15,340
|
|
||
Home equity
|
2,802
|
|
|
1,977
|
|
||
Individual's loans for household and other personal expenditures
|
260
|
|
|
259
|
|
||
Lease financing receivables, net of unearned income
|
|
|
|
|
|
||
Other loans
|
|
|
|
164
|
|
||
Non performing assets plus 90+ days delinquent
|
$
|
74,737
|
|
|
$
|
83,046
|
|
(Dollars in Thousands)
|
2014
|
|
2013
|
|
2012
|
||||||
Allowance for loan losses:
|
|
|
|
|
|
||||||
Balance at January 1
|
$
|
67,870
|
|
|
$
|
69,366
|
|
|
$
|
70,898
|
|
Charge offs
|
17,382
|
|
|
18,134
|
|
|
27,272
|
|
|||
Recoveries
|
10,916
|
|
|
9,990
|
|
|
7,206
|
|
|||
Net charge offs
|
6,466
|
|
|
8,144
|
|
|
20,066
|
|
|||
Provision for loan losses
|
2,560
|
|
|
6,648
|
|
|
18,534
|
|
|||
Balance at December 31
|
$
|
63,964
|
|
|
$
|
67,870
|
|
|
$
|
69,366
|
|
Ratio of net charge offs during the period to average loans outstanding during the period |
0.17
|
%
|
|
0.27
|
%
|
|
0.71
|
%
|
|||
Ratio of allowance to non-accrual loans
|
131.10
|
%
|
|
120.30
|
%
|
|
129.90
|
%
|
(Dollars in Thousands)
|
December 31, 2014
|
|
December 31, 2013
|
|
December 31, 2012
|
||||||
Net charge offs:
|
|
|
|
|
|
||||||
Commercial and industrial loans
|
$
|
865
|
|
|
$
|
1,932
|
|
|
$
|
6,133
|
|
Agricultural production financing and other farm loans
|
970
|
|
|
(317
|
)
|
|
(42
|
)
|
|||
Real estate loans
|
|
|
|
|
|
||||||
Construction
|
(509
|
)
|
|
6
|
|
|
271
|
|
|||
Commercial and farmland
|
3,820
|
|
|
3,935
|
|
|
8,399
|
|
|||
Residential
|
633
|
|
|
1,347
|
|
|
3,052
|
|
|||
Home equity
|
453
|
|
|
1,247
|
|
|
1,310
|
|
|||
Individuals loans for household and other personal expenditures
|
280
|
|
|
67
|
|
|
435
|
|
|||
Lease financing receivables, net of unearned income
|
(22
|
)
|
|
11
|
|
|
32
|
|
|||
Other loans
|
(24
|
)
|
|
(84
|
)
|
|
476
|
|
|||
Total net charge offs
|
$
|
6,466
|
|
|
$
|
8,144
|
|
|
$
|
20,066
|
|
|
December 31, 2014
|
||||||||||||||||||||||
(Dollars in Thousands)
|
Commercial
|
|
Commercial
Real Estate |
|
Consumer
|
|
Residential
|
|
Finance
Leases |
|
Total
|
||||||||||||
Allowance Balances:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
$
|
1,455
|
|
|
$
|
470
|
|
|
|
|
$
|
194
|
|
|
|
|
$
|
2,119
|
|
||||
Collectively evaluated for impairment
|
27,369
|
|
|
18,207
|
|
|
$
|
2,658
|
|
|
12,958
|
|
|
$
|
3
|
|
|
61,195
|
|
||||
Loans acquired with deteriorated credit quality
|
|
|
|
650
|
|
|
|
|
|
|
|
|
650
|
|
|||||||||
Total allowance for loan losses
|
$
|
28,824
|
|
|
$
|
19,327
|
|
|
$
|
2,658
|
|
|
$
|
13,152
|
|
|
$
|
3
|
|
|
$
|
63,964
|
|
|
December 31, 2013
|
||||||||||||||||||||
|
Commercial
|
|
Commercial
Real Estate |
|
Consumer
|
|
Residential
|
|
Finance
Leases |
|
Total
|
||||||||||
Allowance Balances:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated for impairment
|
$
|
585
|
|
|
$
|
763
|
|
|
|
|
$
|
6
|
|
|
|
|
$
|
1,354
|
|
||
Collectively evaluated for impairment
|
26,493
|
|
|
22,208
|
|
|
$
|
2,515
|
|
|
15,071
|
|
|
|
|
66,287
|
|
||||
Loans acquired with deteriorated credit quality
|
98
|
|
|
131
|
|
|
|
|
|
|
|
|
229
|
|
|||||||
Total allowance for loan losses
|
$
|
27,176
|
|
|
$
|
23,102
|
|
|
$
|
2,515
|
|
|
$
|
15,077
|
|
|
|
|
$
|
67,870
|
|
|
December 31,
|
||
(Dollars in Thousands)
|
2014
|
||
Amounts of Commitments:
|
|
||
Loan commitments to extend credit
|
$
|
1,617,552
|
|
Standby letters of credit
|
52,655
|
|
|
|
$
|
1,670,207
|
|
(Dollars in Thousands)
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
2020 and
after |
|
Total
|
||||||||||||||
Operating leases
|
$
|
2,778
|
|
|
$
|
2,207
|
|
|
$
|
1,514
|
|
|
$
|
844
|
|
|
$
|
537
|
|
|
$
|
2,724
|
|
|
$
|
10,604
|
|
Federal funds purchased
|
15,381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,381
|
|
|||||||||||
Securities sold under repurchase agreements
|
124,539
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
124,539
|
|
||||||||||
Federal Home Loan Bank advances
|
30,780
|
|
|
41,225
|
|
|
15,018
|
|
|
25,637
|
|
|
12,503
|
|
|
20,101
|
|
|
145,264
|
|
|||||||
Subordinated debentures and term loans
|
108
|
|
|
|
|
|
|
|
|
|
|
|
|
126,702
|
|
|
126,810
|
|
|||||||||
Total
|
$
|
173,586
|
|
|
$
|
43,432
|
|
|
$
|
16,532
|
|
|
$
|
26,481
|
|
|
$
|
13,040
|
|
|
$
|
149,527
|
|
|
$
|
422,598
|
|
|
December 31, 2014
|
||||||||||||||||||
(Dollars in Thousands)
|
1-180 Days
|
|
181-365 Days
|
|
1-5 Years
|
|
Beyond 5 Years
|
|
Total
|
||||||||||
Rate-Sensitive Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits
|
$
|
47,520
|
|
|
|
|
|
|
|
|
$
|
47,520
|
|
||||||
Investment securities
|
79,709
|
|
|
$
|
86,260
|
|
|
$
|
392,530
|
|
|
$
|
622,132
|
|
|
1,180,631
|
|
||
Loans
|
2,102,140
|
|
|
364,716
|
|
|
1,004,666
|
|
|
453,343
|
|
|
3,924,865
|
|
|||||
Federal Reserve and Federal Home Loan Bank stock
|
|
|
|
|
41,353
|
|
|
|
|
41,353
|
|
||||||||
Total rate-sensitive assets
|
$
|
2,229,369
|
|
|
$
|
450,976
|
|
|
$
|
1,438,549
|
|
|
$
|
1,075,475
|
|
|
$
|
5,194,369
|
|
Rate-Sensitive Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits
|
$
|
2,708,756
|
|
|
$
|
187,611
|
|
|
$
|
478,987
|
|
|
$
|
194,481
|
|
|
$
|
3,569,835
|
|
Federal funds purchased
|
15,381
|
|
|
|
|
|
|
|
|
|
15,381
|
|
|||||||
Securities sold under repurchase agreements
|
124,539
|
|
|
|
|
|
|
|
|
|
124,539
|
|
|||||||
Federal Home Loan Bank advances
|
36,328
|
|
|
27,052
|
|
|
69,260
|
|
|
12,624
|
|
|
145,264
|
|
|||||
Subordinated debentures and term loans
|
56,702
|
|
|
|
|
|
|
|
70,108
|
|
|
126,810
|
|
||||||
Total rate-sensitive liabilities
|
$
|
2,941,706
|
|
|
$
|
214,663
|
|
|
$
|
548,247
|
|
|
$
|
277,213
|
|
|
$
|
3,981,829
|
|
Interest rate sensitivity gap by period |
$
|
(712,337
|
)
|
|
$
|
236,313
|
|
|
$
|
890,302
|
|
|
$
|
798,262
|
|
|
|
|
|
Cumulative rate sensitivity gap
|
$
|
(712,337
|
)
|
|
$
|
(476,024
|
)
|
|
$
|
414,278
|
|
|
$
|
1,212,540
|
|
|
|
||
Cumulative rate sensitivity gap ratio
|
|
|
|
|
|
|
|
|
|
||||||||||
at December 31, 2014
|
75.8
|
%
|
|
84.9
|
%
|
|
111.2
|
%
|
|
130.5
|
%
|
|
|
||||||
at December 31, 2013
|
104.6
|
%
|
|
106.4
|
%
|
|
113.0
|
%
|
|
124.5
|
%
|
|
|
|
|
At December 31, 2014
|
||
|
|
RISING
|
|
FALLING
|
Driver Rates
|
|
(200 Basis Points)
|
|
(100 Basis Points)
|
Prime
|
|
200
|
|
0
|
Federal Funds
|
|
200
|
|
0
|
One-Year CMT
|
|
200
|
|
(15)
|
Three-Year CMT
|
|
200
|
|
(83)
|
Five-Year CMT
|
|
200
|
|
(100)
|
CD's
|
|
200
|
|
(23)
|
FHLB
|
|
200
|
|
(43)
|
|
At December 31, 2014
|
||||||||||
|
|
|
RISING
|
|
FALLING
|
||||||
(Dollars in Thousands)
|
Base
|
|
(200 Basis Points)
|
|
(100 Basis Points)
|
||||||
Net Interest Income
|
$
|
180,175
|
|
|
$
|
192,164
|
|
|
$
|
175,118
|
|
Variance from Base
|
|
|
$
|
11,989
|
|
|
$
|
(5,057
|
)
|
||
Percent of Change from Base
|
|
|
|
6.65
|
%
|
|
(2.81
|
)%
|
|
|
At December 31, 2013
|
||
|
|
RISING
|
|
FALLING
|
Driver Rates
|
|
(200 Basis Points)
|
|
(100 Basis Points)
|
Prime
|
|
200
|
|
0
|
Federal Funds
|
|
200
|
|
0
|
One-Year CMT
|
|
200
|
|
(5)
|
Three-Year CMT
|
|
200
|
|
(50)
|
Five-Year CMT
|
|
200
|
|
(100)
|
CD's
|
|
200
|
|
(20)
|
FHLB
|
|
200
|
|
(33)
|
|
At December 31, 2013
|
||||||||||
|
|
|
RISING
|
|
FALLING
|
||||||
(Dollars in Thousands)
|
Base
|
|
(200 Basis Points)
|
|
(100 Basis Points)
|
||||||
Net Interest Income
|
$
|
179,646
|
|
|
$
|
190,736
|
|
|
$
|
175,238
|
|
Variance from Base
|
|
|
$
|
11,090
|
|
|
$
|
(4,408
|
)
|
||
Percent of Change from Base
|
|
|
|
6.17
|
%
|
|
(2.45
|
)%
|
|
December 31,
|
|
December 31,
|
||||
(Dollars in Thousands)
|
2014
|
|
2013
|
||||
Interest-bearing time deposits
|
$
|
47,520
|
|
|
$
|
55,069
|
|
Investment securities available for sale
|
549,543
|
|
|
536,201
|
|
||
Investment securities held to maturity
|
631,088
|
|
|
559,378
|
|
||
Mortgage loans held for sale
|
7,235
|
|
|
5,331
|
|
||
Loans
|
3,924,865
|
|
|
3,632,409
|
|
||
Federal Reserve and Federal Home Loan Bank stock
|
41,353
|
|
|
38,990
|
|
||
|
$
|
5,201,604
|
|
|
$
|
4,827,378
|
|
|
December 31,
|
|
December 31,
|
||||
(Dollars in Thousands)
|
2014
|
|
2013
|
||||
Deposits
|
$
|
4,640,694
|
|
|
$
|
4,231,468
|
|
Federal funds purchased
|
15,381
|
|
|
125,645
|
|
||
Securities sold under repurchase agreements
|
124,539
|
|
|
148,672
|
|
||
Federal Home Loan Bank advances
|
145,264
|
|
|
122,140
|
|
||
Subordinated debentures and term loans
|
126,810
|
|
|
126,807
|
|
||
|
$
|
5,052,688
|
|
|
$
|
4,754,732
|
|
|
December 31,
|
|
December 31,
|
||||
(Dollars in Thousands, Except Share Data)
|
2014
|
|
2013
|
||||
ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
118,616
|
|
|
$
|
109,434
|
|
Interest-bearing time deposits
|
47,520
|
|
|
55,069
|
|
||
Investment securities available for sale
|
549,543
|
|
|
536,201
|
|
||
Investment securities held to maturity (fair value of $647,723 and $560,847)
|
631,088
|
|
|
559,378
|
|
||
Loans held for sale
|
7,235
|
|
|
5,331
|
|
||
Loans
|
3,924,865
|
|
|
3,632,409
|
|
||
Less: Allowance for loan losses
|
(63,964
|
)
|
|
(67,870
|
)
|
||
Net loans
|
3,860,901
|
|
|
3,564,539
|
|
||
Premises and equipment
|
77,691
|
|
|
74,454
|
|
||
Federal Reserve and Federal Home Loan Bank stock
|
41,353
|
|
|
38,990
|
|
||
Interest receivable
|
19,984
|
|
|
18,672
|
|
||
Core deposit intangibles
|
16,031
|
|
|
13,818
|
|
||
Goodwill
|
202,724
|
|
|
188,948
|
|
||
Cash surrender value of life insurance
|
169,424
|
|
|
164,571
|
|
||
Other real estate owned
|
19,293
|
|
|
22,246
|
|
||
Tax asset, deferred and receivable
|
41,960
|
|
|
56,614
|
|
||
Other assets
|
20,764
|
|
|
28,997
|
|
||
TOTAL ASSETS
|
$
|
5,824,127
|
|
|
$
|
5,437,262
|
|
LIABILITIES
|
|
|
|
||||
Deposits:
|
|
|
|
||||
Noninterest-bearing
|
$
|
1,070,859
|
|
|
$
|
930,772
|
|
Interest-bearing
|
3,569,835
|
|
|
3,300,696
|
|
||
Total Deposits
|
4,640,694
|
|
|
4,231,468
|
|
||
Borrowings:
|
|
|
|
||||
Federal funds purchased
|
15,381
|
|
|
125,645
|
|
||
Securities sold under repurchase agreements
|
124,539
|
|
|
148,672
|
|
||
Federal Home Loan Bank advances
|
145,264
|
|
|
122,140
|
|
||
Subordinated debentures and term loans
|
126,810
|
|
|
126,807
|
|
||
Total Borrowings
|
411,994
|
|
|
523,264
|
|
||
Interest payable
|
3,201
|
|
|
1,771
|
|
||
Other liabilities
|
41,411
|
|
|
45,836
|
|
||
Total Liabilities
|
5,097,300
|
|
|
4,802,339
|
|
||
COMMITMENTS AND CONTINGENT LIABILITIES
|
|
|
|
||||
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 - 50,000,000 shares
|
|
|
|
||||
Issued and outstanding - 37,669,948 and 35,921,761 shares
|
4,709
|
|
|
4,490
|
|
||
Additional paid-in capital
|
431,220
|
|
|
393,783
|
|
||
Retained earnings
|
292,403
|
|
|
242,935
|
|
||
Accumulated other comprehensive loss
|
(1,630
|
)
|
|
(6,410
|
)
|
||
Total Stockholders' Equity
|
726,827
|
|
|
634,923
|
|
||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
5,824,127
|
|
|
$
|
5,437,262
|
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||||
(Dollars in Thousands, Except Share Data)
|
2014
|
|
2013
|
|
2012
|
||||||
INTEREST INCOME
|
|
|
|
|
|
||||||
Loans receivable:
|
|
|
|
|
|
||||||
Taxable
|
$
|
172,039
|
|
|
$
|
142,752
|
|
|
$
|
146,745
|
|
Tax-exempt
|
327
|
|
|
393
|
|
|
480
|
|
|||
Investment securities:
|
|
|
|
|
|
||||||
Taxable
|
19,882
|
|
|
15,214
|
|
|
17,027
|
|
|||
Tax-exempt
|
14,383
|
|
|
10,829
|
|
|
10,189
|
|
|||
Deposits with financial institutions
|
124
|
|
|
158
|
|
|
100
|
|
|||
Federal Reserve and Federal Home Loan Bank stock
|
2,124
|
|
|
1,488
|
|
|
1,408
|
|
|||
Total Interest Income
|
208,879
|
|
|
170,834
|
|
|
175,949
|
|
|||
INTEREST EXPENSE
|
|
|
|
|
|
||||||
Deposits
|
11,678
|
|
|
10,053
|
|
|
14,800
|
|
|||
Federal funds purchased
|
177
|
|
|
102
|
|
|
69
|
|
|||
Securities sold under repurchase agreements
|
529
|
|
|
787
|
|
|
907
|
|
|||
Federal Home Loan Bank advances
|
2,842
|
|
|
2,096
|
|
|
2,624
|
|
|||
Subordinated debentures, revolving credit lines and term loans
|
6,616
|
|
|
3,531
|
|
|
5,213
|
|
|||
Total Interest Expense
|
21,842
|
|
|
16,569
|
|
|
23,613
|
|
|||
NET INTEREST INCOME
|
187,037
|
|
|
154,265
|
|
|
152,336
|
|
|||
Provision for loan losses
|
2,560
|
|
|
6,648
|
|
|
18,534
|
|
|||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
|
184,477
|
|
|
147,617
|
|
|
133,802
|
|
|||
OTHER INCOME
|
|
|
|
|
|
||||||
Service charges on deposit accounts
|
15,747
|
|
|
12,400
|
|
|
11,587
|
|
|||
Fiduciary activities
|
8,966
|
|
|
8,594
|
|
|
7,891
|
|
|||
Other customer fees
|
15,699
|
|
|
11,866
|
|
|
11,233
|
|
|||
Commission income
|
7,411
|
|
|
7,141
|
|
|
6,224
|
|
|||
Earnings on cash surrender value of life insurance
|
3,659
|
|
|
2,613
|
|
|
3,418
|
|
|||
Net gains and fees on sales of loans
|
4,899
|
|
|
7,511
|
|
|
10,628
|
|
|||
Net realized gains on sales of available for sale securities
|
3,581
|
|
|
487
|
|
|
2,389
|
|
|||
Gain on FDIC modified whole bank transaction
|
|
|
|
|
|
|
9,124
|
|
|||
Other income
|
5,705
|
|
|
4,197
|
|
|
1,808
|
|
|||
Total Other Income
|
65,667
|
|
|
54,809
|
|
|
64,302
|
|
|||
OTHER EXPENSES
|
|
|
|
|
|
||||||
Salaries and employee benefits
|
96,499
|
|
|
85,413
|
|
|
79,398
|
|
|||
Net occupancy
|
13,831
|
|
|
10,291
|
|
|
10,186
|
|
|||
Equipment
|
9,337
|
|
|
7,737
|
|
|
7,201
|
|
|||
Marketing
|
3,464
|
|
|
2,236
|
|
|
2,158
|
|
|||
Outside data processing fees
|
7,315
|
|
|
5,591
|
|
|
5,656
|
|
|||
Printing and office supplies
|
1,565
|
|
|
1,340
|
|
|
1,169
|
|
|||
Core deposit amortization
|
2,445
|
|
|
1,649
|
|
|
1,927
|
|
|||
FDIC assessments
|
3,738
|
|
|
2,862
|
|
|
3,509
|
|
|||
Other real estate owned and foreclosure expenses
|
8,043
|
|
|
6,661
|
|
|
8,178
|
|
|||
Professional and other outside services
|
8,116
|
|
|
8,297
|
|
|
6,228
|
|
|||
Other expenses
|
14,239
|
|
|
11,142
|
|
|
11,505
|
|
|||
Total Other Expenses
|
168,592
|
|
|
143,219
|
|
|
137,115
|
|
|||
INCOME BEFORE INCOME TAX
|
81,552
|
|
|
59,207
|
|
|
60,989
|
|
|||
Income tax expense
|
21,390
|
|
|
14,677
|
|
|
15,867
|
|
|||
NET INCOME
|
60,162
|
|
|
44,530
|
|
|
45,122
|
|
|||
Preferred stock dividends
|
|
|
|
(2,380
|
)
|
|
(4,539
|
)
|
|||
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS
|
$
|
60,162
|
|
|
$
|
42,150
|
|
|
$
|
40,583
|
|
|
|
|
|
|
|
||||||
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS PER SHARE:
|
|
|
|||||||||
Basic
|
$
|
1.66
|
|
|
$
|
1.42
|
|
|
$
|
1.42
|
|
Diluted
|
$
|
1.65
|
|
|
$
|
1.41
|
|
|
$
|
1.41
|
|
(Dollars in Thousands)
|
December 31, 2014
|
|
December 31, 2013
|
|
December 31, 2012
|
||||||
Net income
|
$
|
60,162
|
|
|
$
|
44,530
|
|
|
$
|
45,122
|
|
Other comprehensive income (loss) net of tax:
|
|
|
|
|
|
||||||
Unrealized holding gain (loss) on securities available for sale arising during the period,
net of tax of $8,001, $6,841, and $654 |
14,860
|
|
|
(12,705
|
)
|
|
1,214
|
|
|||
Unrealized loss on securities transferred to held-to-maturity, net of tax of $0, $1,786, and $0
|
|
|
|
(3,316
|
)
|
|
|
|
|||
Unrealized gain (loss) on securities available for sale for which a portion of an other than temporary
impairment has been recognized in income, net of tax of $995, $767, and $56 |
1,847
|
|
|
1,425
|
|
|
(104
|
)
|
|||
Unrealized gain (loss) on cash flow hedges arising during the period, net of tax of $1,397, $831, and $514
|
(2,599
|
)
|
|
1,543
|
|
|
(952
|
)
|
|||
Reclassification adjustment for net losses (gains) included in net income net of tax of $760, $157, and $759
|
(1,410
|
)
|
|
291
|
|
|
(1,413
|
)
|
|||
Defined benefit pension plans, net of tax of $4,264, $6,382, and $346
|
|
|
|
|
|
|
|
|
|||
Net gain (loss) arising during period
|
(7,580
|
)
|
|
10,704
|
|
|
(577
|
)
|
|||
Amortization of prior service cost
|
(338
|
)
|
|
1,147
|
|
|
(65
|
)
|
|||
|
4,780
|
|
|
(911
|
)
|
|
(1,897
|
)
|
|||
Comprehensive income
|
$
|
64,942
|
|
|
$
|
43,619
|
|
|
$
|
43,225
|
|
|
Preferred
|
|
Common Stock
|
|
|
|
|
|
|
|
|
||||||||||||||||||
(Dollars in Thousands, Except Share Data)
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Additional Paid in Capital
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Total
|
||||||||||||||
Balances, December 31, 2011
|
90,908
|
|
|
$
|
90,908
|
|
|
28,559,707
|
|
|
$
|
3,570
|
|
|
$
|
254,874
|
|
|
$
|
168,717
|
|
|
$
|
(3,602
|
)
|
|
$
|
514,467
|
|
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net income
|
|
|
|
|
|
|
|
|
|
|
45,122
|
|
|
|
|
45,122
|
|
||||||||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,897
|
)
|
|
(1,897
|
)
|
||||||||||||
Cash dividends on common stock ($.10 per share)
|
|
|
|
|
|
|
|
|
|
|
(2,903
|
)
|
|
|
|
(2,903
|
)
|
||||||||||||
Cash dividends on preferred stock under small business lending fund
|
|
|
|
|
|
|
|
|
|
|
(4,539
|
)
|
|
|
|
(4,539
|
)
|
||||||||||||
Share-based compensation
|
|
|
|
|
86,325
|
|
|
11
|
|
|
1,481
|
|
|
|
|
|
|
1,492
|
|
||||||||||
Stock issued under employee benefit plans
|
|
|
|
|
41,867
|
|
|
5
|
|
|
444
|
|
|
|
|
|
|
449
|
|
||||||||||
Stock issued under dividend reinvestment and stock purchase plan
|
|
|
|
|
15,709
|
|
|
2
|
|
|
200
|
|
|
|
|
|
|
202
|
|
||||||||||
Stock options exercised
|
|
|
|
|
10,500
|
|
|
1
|
|
|
77
|
|
|
|
|
|
|
78
|
|
||||||||||
Stock redeemed
|
|
|
|
|
(21,492
|
)
|
|
(2
|
)
|
|
(233
|
)
|
|
|
|
|
|
(235
|
)
|
||||||||||
Balances, December 31, 2012
|
90,908
|
|
|
$
|
90,908
|
|
|
28,692,616
|
|
|
$
|
3,587
|
|
|
$
|
256,843
|
|
|
$
|
206,397
|
|
|
$
|
(5,499
|
)
|
|
$
|
552,236
|
|
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net income
|
|
|
|
|
|
|
|
|
|
|
44,530
|
|
|
|
|
44,530
|
|
||||||||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
(911
|
)
|
|
(911
|
)
|
||||||||||||
Cash dividends on common stock ($.18 per share)
|
|
|
|
|
|
|
|
|
|
|
(5,612
|
)
|
|
|
|
(5,612
|
)
|
||||||||||||
Cash dividends on preferred stock under small business lending fund
|
|
|
|
|
|
|
|
|
|
|
(2,380
|
)
|
|
|
|
(2,380
|
)
|
||||||||||||
Preferred stock redemption under small business lending fund
|
(90,783
|
)
|
|
(90,783
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(90,783
|
)
|
|||||||||||
Issuance of common stock related to acquisition
|
|
|
|
|
7,079,457
|
|
|
885
|
|
|
134,757
|
|
|
|
|
|
|
135,642
|
|
||||||||||
Share-based compensation
|
|
|
|
|
116,978
|
|
|
15
|
|
|
1,758
|
|
|
|
|
|
|
1,773
|
|
||||||||||
Stock issued under employee benefit plans
|
|
|
|
|
33,451
|
|
|
4
|
|
|
475
|
|
|
|
|
|
|
479
|
|
||||||||||
Stock issued under dividend reinvestment and stock purchase plan
|
|
|
|
|
18,449
|
|
|
2
|
|
|
323
|
|
|
|
|
|
|
325
|
|
||||||||||
Stock options exercised
|
|
|
|
|
13,750
|
|
|
2
|
|
|
113
|
|
|
|
|
|
|
115
|
|
||||||||||
Stock redeemed
|
|
|
|
|
(32,940
|
)
|
|
(5
|
)
|
|
(486
|
)
|
|
|
|
|
|
(491
|
)
|
||||||||||
Balances, December 31, 2013
|
125
|
|
|
$
|
125
|
|
|
35,921,761
|
|
|
$
|
4,490
|
|
|
$
|
393,783
|
|
|
$
|
242,935
|
|
|
$
|
(6,410
|
)
|
|
$
|
634,923
|
|
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net income
|
|
|
|
|
|
|
|
|
|
|
60,162
|
|
|
|
|
60,162
|
|
||||||||||||
Other comprehensive income, net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
4,780
|
|
|
4,780
|
|
||||||||||||
Cash dividends on common stock ($.29 per share)
|
|
|
|
|
|
|
|
|
|
|
(10,694
|
)
|
|
|
|
(10,694
|
)
|
||||||||||||
Issuance of common stock related to acquisition
|
|
|
|
|
1,574,298
|
|
|
197
|
|
|
34,784
|
|
|
|
|
|
|
34,981
|
|
||||||||||
Share-based compensation
|
|
|
|
|
132,446
|
|
|
17
|
|
|
2,160
|
|
|
|
|
|
|
2,177
|
|
||||||||||
Stock issued under employee benefit plans
|
|
|
|
|
26,547
|
|
|
3
|
|
|
475
|
|
|
|
|
|
|
478
|
|
||||||||||
Stock issued under dividend reinvestment and stock purchase plan
|
|
|
|
|
24,556
|
|
|
3
|
|
|
520
|
|
|
|
|
|
|
523
|
|
||||||||||
Stock options exercised
|
|
|
|
|
41,249
|
|
|
5
|
|
|
559
|
|
|
|
|
|
|
564
|
|
||||||||||
Stock redeemed
|
|
|
|
|
(50,909
|
)
|
|
(6
|
)
|
|
(1,061
|
)
|
|
|
|
|
|
(1,067
|
)
|
||||||||||
Balances, December 31, 2014
|
125
|
|
|
$
|
125
|
|
|
37,669,948
|
|
|
$
|
4,709
|
|
|
$
|
431,220
|
|
|
$
|
292,403
|
|
|
$
|
(1,630
|
)
|
|
$
|
726,827
|
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||||
(Dollars in Thousands)
|
2014
|
|
2013
|
|
2012
|
||||||
Cash Flow From Operating Activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
60,162
|
|
|
$
|
44,530
|
|
|
$
|
45,122
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Provision for loan losses
|
2,560
|
|
|
6,648
|
|
|
18,534
|
|
|||
Depreciation and amortization
|
6,007
|
|
|
4,670
|
|
|
4,472
|
|
|||
Change in deferred taxes
|
23,051
|
|
|
13,939
|
|
|
15,890
|
|
|||
Share-based compensation
|
2,177
|
|
|
1,773
|
|
|
1,492
|
|
|||
Tax benefit from stock options exercised
|
(60
|
)
|
|
|
|
|
|
|
|||
Loans originated for sale
|
(222,892
|
)
|
|
(280,693
|
)
|
|
(393,565
|
)
|
|||
Proceeds from sales of Loans
|
220,988
|
|
|
297,851
|
|
|
389,129
|
|
|||
Gain on acquisition
|
|
|
|
|
|
|
(9,124
|
)
|
|||
Gains on sales of securities available for sale
|
(3,581
|
)
|
|
(487
|
)
|
|
(2,389
|
)
|
|||
Change in interest receivable
|
(545
|
)
|
|
(535
|
)
|
|
1,884
|
|
|||
Change in interest payable
|
1,332
|
|
|
(364
|
)
|
|
(1,451
|
)
|
|||
Change in other receivable
|
|
|
|
110,032
|
|
|
|
||||
Other adjustments
|
(13,359
|
)
|
|
(14,233
|
)
|
|
275
|
|
|||
Net cash provided by operating activities
|
$
|
75,840
|
|
|
$
|
183,131
|
|
|
$
|
70,269
|
|
Cash Flows from Investing Activities:
|
|
|
|
|
|
||||||
Net change in interest-bearing deposits
|
$
|
24,075
|
|
|
$
|
196,753
|
|
|
$
|
14,408
|
|
Purchases of:
|
|
|
|
|
|
||||||
Securities available for sale
|
(110,936
|
)
|
|
(398,491
|
)
|
|
(139,555
|
)
|
|||
Securities held to maturity
|
(142,988
|
)
|
|
(11,145
|
)
|
|
(4,262
|
)
|
|||
Proceeds from sales of securities available for sale
|
126,575
|
|
|
25,222
|
|
|
52,350
|
|
|||
Proceeds from maturities of:
|
|
|
|
|
|
||||||
Securities available for sale
|
68,339
|
|
|
93,273
|
|
|
112,141
|
|
|||
Securities held to maturity
|
69,420
|
|
|
78,534
|
|
|
68,118
|
|
|||
Change in Federal Reserve and Federal Home Loan Bank stock
|
(413
|
)
|
|
(17
|
)
|
|
246
|
|
|||
Net change in loans
|
(170,109
|
)
|
|
(142,861
|
)
|
|
(123,036
|
)
|
|||
Net cash and cash equivalents received (paid) in acquisition
|
(10,084
|
)
|
|
10,992
|
|
|
29,113
|
|
|||
Proceeds from the sale of other real estate owned
|
14,241
|
|
|
12,346
|
|
|
4,428
|
|
|||
Other adjustments
|
5,889
|
|
|
(2,768
|
)
|
|
(2,065
|
)
|
|||
Net cash provided by (used in) investing activities
|
$
|
(125,991
|
)
|
|
$
|
(138,162
|
)
|
|
$
|
11,886
|
|
Cash Flows from Financing Activities:
|
|
|
|
|
|
||||||
Net change in :
|
|
|
|
|
|
||||||
Demand and savings deposits
|
$
|
53,062
|
|
|
$
|
141,052
|
|
|
$
|
228,725
|
|
Certificates of deposit and other time deposits
|
127,740
|
|
|
(211,399
|
)
|
|
(142,906
|
)
|
|||
Borrowings
|
678,290
|
|
|
295,537
|
|
|
138,127
|
|
|||
Repayment of borrowings
|
(789,563
|
)
|
|
(163,838
|
)
|
|
(271,005
|
)
|
|||
Cash dividends on common stock
|
(10,694
|
)
|
|
(5,612
|
)
|
|
(2,903
|
)
|
|||
Cash dividends on preferred stock
|
|
|
|
(2,380
|
)
|
|
(4,539
|
)
|
|||
Stock issued under employee benefit plans
|
478
|
|
|
479
|
|
|
449
|
|
|||
Stock issued under dividend reinvestment and stock purchase plans
|
523
|
|
|
325
|
|
|
202
|
|
|||
Stock options exercised
|
504
|
|
|
115
|
|
|
78
|
|
|||
Tax benefit from stock options exercised
|
60
|
|
|
|
|
|
|
|
|||
Cumulative preferred stock redeemed (SBLF)
|
|
|
(90,783
|
)
|
|
|
|||||
Stock redeemed
|
(1,067
|
)
|
|
(491
|
)
|
|
(235
|
)
|
|||
Net cash provided by (used in) financing activities
|
$
|
59,333
|
|
|
$
|
(36,995
|
)
|
|
$
|
(54,007
|
)
|
Net Change in Cash and Cash Equivalents
|
9,182
|
|
|
7,974
|
|
|
28,148
|
|
|||
Cash and Cash Equivalents, January 1
|
109,434
|
|
|
101,460
|
|
|
73,312
|
|
|||
Cash and Cash Equivalents, December 31
|
$
|
118,616
|
|
|
$
|
109,434
|
|
|
$
|
101,460
|
|
Additional cash flow information:
|
|
|
|
|
|
||||||
Interest paid
|
$
|
20,412
|
|
|
$
|
16,639
|
|
|
$
|
24,697
|
|
Income tax paid
|
6,209
|
|
|
7,578
|
|
|
11,738
|
|
|||
Loans transferred to other real estate owned
|
4,431
|
|
|
7,170
|
|
|
4,441
|
|
|||
Fixed assets transferred to other real estate owned
|
297
|
|
|
461
|
|
|
|
|
|||
Non-cash investing activities using trade date accounting
|
3,170
|
|
|
4,984
|
|
|
1,518
|
|
|
December 31,
2014 |
|
December 31,
2013 |
|
December 31,
2012 |
||||||
Fair value of assets acquired
|
$
|
280,725
|
|
|
$
|
1,132,231
|
|
|
$
|
128,923
|
|
Cash received (paid) in acquisition
|
(14,208
|
)
|
|
|
|
17,200
|
|
||||
Net gain on acquisition
|
|
|
|
|
(9,124
|
)
|
|||||
Less: Common stock issued
|
34,981
|
|
|
135,642
|
|
|
|
||||
Liabilities assumed
|
$
|
231,536
|
|
|
$
|
996,589
|
|
|
$
|
136,999
|
|
Assets
|
|
|
|
Liabilities
|
|
|||
Cash and due from banks
(1)
|
$
|
29,113
|
|
|
Deposits:
|
|
||
Investment securities, available for sale
|
18,896
|
|
|
Non-interest bearing
|
$
|
13,715
|
|
|
Federal Home Loan Bank stock
|
1,761
|
|
|
NOW accounts
|
14,746
|
|
||
Loans:
|
|
|
|
Savings and money market
|
25,843
|
|
||
Commercial
|
51,042
|
|
|
Certificate of deposit
|
71,605
|
|
||
Residential mortgage
|
11,181
|
|
|
Total Deposits
|
125,909
|
|
||
Installment
|
31,570
|
|
|
|
|
|
||
Total Loans
|
93,793
|
|
|
Federal Home Loan Bank advances
|
10,286
|
|
||
|
|
|
|
Other liabilities
|
804
|
|
||
Premises
|
1,516
|
|
|
Total Liabilities Assumed
|
$
|
136,999
|
|
|
Core deposit intangible
|
484
|
|
|
|
|
|
||
Other assets
|
560
|
|
|
Net Gain on Acquisition
|
$
|
9,124
|
|
|
Total Assets Purchased
|
$
|
146,123
|
|
|
|
|
|
(1)
|
Includes
$17,200,000
cash received from the FDIC.
|
Preliminary estimate of contractually required principal and interest at acquisition
|
$
|
31,143
|
|
Preliminary estimate of contractual cash flows not expected to be collected (nonaccretable differences)
|
9,688
|
|
|
Preliminary estimate of expected cash flows at acquisition
|
21,455
|
|
|
Preliminary estimate of interest component of expected cash flows (accretable discount)
|
4,152
|
|
|
Preliminary estimate of fair value of acquired loans accounted for under ASC 310-30
|
$
|
17,303
|
|
|
Fair Value
|
||
Cash and cash equivalents
|
$
|
4,124
|
|
Interest -bearing time deposits
|
16,526
|
|
|
Investment Securities, available for sale
|
76,807
|
|
|
Loans
|
145,064
|
|
|
Premises and equipment
|
3,610
|
|
|
Federal Home Loan Bank stock
|
1,950
|
|
|
Interest Receivable
|
767
|
|
|
Cash surrender value of life insurance
|
3,266
|
|
|
Other real estate owned
|
6,662
|
|
|
Taxes, deferred and receivable
|
3,348
|
|
|
Other assets
|
167
|
|
|
Deposits
|
(228,424
|
)
|
|
Interest payable
|
(98
|
)
|
|
Other liabilities
|
(3,014
|
)
|
|
Net tangible assets acquired
|
$
|
30,755
|
|
Core deposit intangible
|
4,658
|
|
|
Goodwill
|
13,776
|
|
|
Purchase price
|
$
|
49,189
|
|
|
Fair Value
|
||
Cash and cash equivalents
|
$
|
10,992
|
|
Interest-bearing time deposits
|
213,379
|
|
|
Investment securities available for sale
|
15,913
|
|
|
Investment securities held to maturity
|
14,372
|
|
|
Mortgage loans held for sale
|
189
|
|
|
Loans
|
603,114
|
|
|
Premises and equipment
|
19,643
|
|
|
Federal Home Loan Bank stock
|
6,188
|
|
|
Interest receivable
|
1,770
|
|
|
Cash surrender value of life insurance
|
36,555
|
|
|
Other real estate owned
|
12,857
|
|
|
Tax asset, deferred and receivable
|
30,717
|
|
|
Other assets
|
111,656
|
|
|
Deposits
|
(955,432
|
)
|
|
Securities sold under repurchase agreements
|
(9,830
|
)
|
|
Federal Home Loan Bank advances
|
(15,000
|
)
|
|
Interest payable
|
(294
|
)
|
|
Other liabilities
|
(16,033
|
)
|
|
Net tangible assets acquired
|
$
|
80,756
|
|
Core deposit intangible
|
7,313
|
|
|
Goodwill
|
47,573
|
|
|
Purchase price
|
$
|
135,642
|
|
|
2014
|
|
2013
|
|
2012
|
||||||
Total revenue (net interest income plus other income)
|
$
|
263,070
|
|
|
$
|
253,668
|
|
|
$
|
266,034
|
|
Net income
|
$
|
61,572
|
|
|
$
|
39,979
|
|
|
$
|
50,092
|
|
Net income available to common shareholders
|
$
|
61,572
|
|
|
$
|
37,599
|
|
|
$
|
45,553
|
|
Earnings per share:
|
|
|
|
|
|
||||||
Basic
|
$
|
1.63
|
|
|
$
|
0.98
|
|
|
$
|
1.28
|
|
Diluted
|
$
|
1.61
|
|
|
$
|
0.97
|
|
|
$
|
1.27
|
|
|
Amortized Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Fair Value
|
||||||||
Available for sale at December 31, 2014
|
|
|
|
|
|
|
|
||||||||
U.S. Government-sponsored agency securities
|
$
|
100
|
|
|
$
|
9
|
|
|
|
|
$
|
109
|
|
||
State and municipal
|
216,915
|
|
|
11,801
|
|
|
$
|
123
|
|
|
228,593
|
|
|||
U.S. Government-sponsored mortgage-backed securities
|
310,460
|
|
|
8,771
|
|
|
127
|
|
|
319,104
|
|
||||
Corporate obligations
|
31
|
|
|
|
|
|
|
|
31
|
|
|||||
Equity securities
|
1,706
|
|
|
|
|
|
|
1,706
|
|
||||||
Total available for sale
|
529,212
|
|
|
20,581
|
|
|
250
|
|
|
549,543
|
|
||||
Held to maturity at December 31, 2014
|
|
|
|
|
|
|
|
||||||||
State and municipal
|
204,443
|
|
|
5,716
|
|
|
96
|
|
|
210,063
|
|
||||
U.S. Government-sponsored mortgage-backed securities
|
426,645
|
|
|
11,527
|
|
|
512
|
|
|
437,660
|
|
||||
Total held to maturity
|
631,088
|
|
|
17,243
|
|
|
608
|
|
|
647,723
|
|
||||
Total Investment Securities
|
$
|
1,160,300
|
|
|
$
|
37,824
|
|
|
$
|
858
|
|
|
$
|
1,197,266
|
|
|
|
|
|
|
|
|
|
||||||||
Available for sale at December 31, 2013
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
$
|
15,914
|
|
|
$
|
80
|
|
|
$
|
21
|
|
|
$
|
15,973
|
|
U.S. Government-sponsored agency securities
|
3,550
|
|
|
12
|
|
|
17
|
|
|
3,545
|
|
||||
State and municipal
|
231,005
|
|
|
3,878
|
|
|
3,896
|
|
|
230,987
|
|
||||
U.S. Government-sponsored mortgage-backed securities
|
279,299
|
|
|
3,926
|
|
|
1,973
|
|
|
281,252
|
|
||||
Corporate obligations
|
6,374
|
|
|
|
|
3,636
|
|
|
2,738
|
|
|||||
Equity securities
|
1,706
|
|
|
|
|
|
|
1,706
|
|
||||||
Total available for sale
|
537,848
|
|
|
7,896
|
|
|
9,543
|
|
|
536,201
|
|
||||
Held to maturity at December 31, 2013
|
|
|
|
|
|
|
|
||||||||
State and municipal
|
145,941
|
|
|
62
|
|
|
91
|
|
|
145,912
|
|
||||
U.S. Government-sponsored mortgage-backed securities
|
413,437
|
|
|
5,220
|
|
|
3,722
|
|
|
414,935
|
|
||||
Total held to maturity
|
559,378
|
|
|
5,282
|
|
|
3,813
|
|
|
560,847
|
|
||||
Total Investment Securities
|
$
|
1,097,226
|
|
|
$
|
13,178
|
|
|
$
|
13,356
|
|
|
$
|
1,097,048
|
|
|
Accumulated Credit Losses in
|
|
Accumulated Credit Losses in
|
||||
|
2014
|
|
2013
|
||||
Credit losses on debt securities held:
|
|
|
|
||||
Balance, January 1
|
$
|
11,355
|
|
|
$
|
11,355
|
|
Reductions for previous other-than-temporary losses realized on securities sold during the year
|
(10,855
|
)
|
|
|
|
||
Balance, December 31
|
$
|
500
|
|
|
$
|
11,355
|
|
|
Less than
12 Months |
|
12 Months
or Longer |
|
Total
|
||||||||||||||||||
|
Fair
Value |
|
Gross
Unrealized Losses |
|
Fair
Value |
|
Gross
Unrealized Losses |
|
Fair
Value |
|
Gross
Unrealized Losses |
||||||||||||
Temporarily Impaired Available for Sale Securities at December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
State and municipal
|
$
|
1,256
|
|
|
$
|
7
|
|
|
$
|
9,850
|
|
|
$
|
116
|
|
|
$
|
11,106
|
|
|
$
|
123
|
|
U.S. Government-sponsored mortgage-backed securities
|
2,186
|
|
|
13
|
|
|
5,447
|
|
|
114
|
|
|
7,633
|
|
|
127
|
|
||||||
Total Temporarily Impaired Available for Sale Securities
|
3,442
|
|
|
20
|
|
|
15,297
|
|
|
230
|
|
|
18,739
|
|
|
250
|
|
||||||
Temporarily Impaired Held to Maturity Securities at December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
State and municipal
|
5,119
|
|
|
96
|
|
|
250
|
|
|
|
|
5,369
|
|
|
96
|
|
|||||||
U.S. Government-sponsored mortgage-backed securities
|
9,791
|
|
|
82
|
|
|
38,491
|
|
|
430
|
|
|
48,282
|
|
|
512
|
|
||||||
Total Temporarily Impaired Held to Maturity Securities
|
14,910
|
|
|
178
|
|
|
38,741
|
|
|
430
|
|
|
53,651
|
|
|
608
|
|
||||||
Total Temporarily Impaired Investment Securities
|
$
|
18,352
|
|
|
$
|
198
|
|
|
$
|
54,038
|
|
|
$
|
660
|
|
|
$
|
72,390
|
|
|
$
|
858
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Less than
12 Months |
|
12 Months
or Longer |
|
Total
|
||||||||||||||||||
|
Fair
Value |
|
Gross
Unrealized Losses |
|
Fair
Value |
|
Gross
Unrealized Losses |
|
Fair
Value |
|
Gross
Unrealized Losses |
||||||||||||
Temporarily Impaired Available for Sale Securities at December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury
|
$
|
4,875
|
|
|
$
|
21
|
|
|
|
|
|
|
$
|
4,875
|
|
|
$
|
21
|
|
||||
U.S. Government-sponsored agency securities
|
3,433
|
|
|
17
|
|
|
|
|
|
|
3,433
|
|
|
17
|
|
||||||||
State and municipal
|
111,791
|
|
|
3,840
|
|
|
$
|
583
|
|
|
$
|
56
|
|
|
112,374
|
|
|
3,896
|
|
||||
U.S. Government-sponsored mortgage-backed securities
|
117,866
|
|
|
1,701
|
|
|
2,683
|
|
|
272
|
|
|
120,549
|
|
|
1,973
|
|
||||||
Corporate obligations
|
|
|
|
|
2,711
|
|
|
3,636
|
|
|
2,711
|
|
|
3,636
|
|
||||||||
Total Temporarily Impaired Available for Sale Securities
|
237,965
|
|
|
5,579
|
|
|
5,977
|
|
|
3,964
|
|
|
243,942
|
|
|
9,543
|
|
||||||
Temporarily Impaired Held to Maturity Securities at December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
State and municipal
|
17,318
|
|
|
91
|
|
|
184
|
|
|
|
|
17,502
|
|
|
91
|
|
|||||||
U.S. Government-sponsored mortgage-backed securities
|
213,048
|
|
|
3,462
|
|
|
2,640
|
|
|
260
|
|
|
215,688
|
|
|
3,722
|
|
||||||
Total Temporarily Impaired Held to Maturity Securities
|
230,366
|
|
|
3,553
|
|
|
2,824
|
|
|
260
|
|
|
233,190
|
|
|
3,813
|
|
||||||
Total Temporarily Impaired Investment Securities
|
$
|
468,331
|
|
|
$
|
9,132
|
|
|
$
|
8,801
|
|
|
$
|
4,224
|
|
|
$
|
477,132
|
|
|
$
|
13,356
|
|
|
Available for Sale
|
|
Held to Maturity
|
||||||||||||
|
Amortized Cost
|
|
Fair Value
|
|
Amortized Cost
|
|
Fair Value
|
||||||||
Maturity Distribution at December 31, 2014
|
|
|
|
|
|
|
|
||||||||
Due in one year or less
|
$
|
3,127
|
|
|
$
|
3,153
|
|
|
$
|
6,258
|
|
|
$
|
6,329
|
|
Due after one through five years
|
9,565
|
|
|
9,840
|
|
|
18,440
|
|
|
18,930
|
|
||||
Due after five through ten years
|
48,675
|
|
|
50,889
|
|
|
85,997
|
|
|
87,903
|
|
||||
Due after ten years
|
155,679
|
|
|
164,851
|
|
|
93,748
|
|
|
96,901
|
|
||||
|
217,046
|
|
|
228,733
|
|
|
204,443
|
|
|
210,063
|
|
||||
U.S. Government-sponsored mortgage-backed securities
|
310,460
|
|
|
319,104
|
|
|
426,645
|
|
|
437,660
|
|
||||
Equity securities
|
1,706
|
|
|
1,706
|
|
|
|
|
|
||||||
Total Investment Securities
|
$
|
529,212
|
|
|
$
|
549,543
|
|
|
$
|
631,088
|
|
|
$
|
647,723
|
|
|
December 31, 2014
|
|
December 31, 2013
|
||||
|
|
|
|
||||
Commercial and industrial loans
|
$
|
896,688
|
|
|
$
|
761,705
|
|
Agricultural production financing and other loans to farmers
|
104,927
|
|
|
114,348
|
|
||
Real estate loans:
|
|
|
|
||||
Construction
|
207,221
|
|
|
177,082
|
|
||
Commercial and farmland
|
1,672,661
|
|
|
1,611,809
|
|
||
Residential
|
647,315
|
|
|
616,385
|
|
||
Home equity
|
286,529
|
|
|
255,223
|
|
||
Individuals' loans for household and other personal expenditures
|
73,400
|
|
|
69,783
|
|
||
Lease financing receivables, net of unearned income
|
1,106
|
|
|
1,545
|
|
||
Other loans
|
35,018
|
|
|
24,529
|
|
||
Loans
|
3,924,865
|
|
|
3,632,409
|
|
||
Allowance for loan losses
|
(63,964
|
)
|
|
(67,870
|
)
|
||
Net Loans
|
$
|
3,860,901
|
|
|
$
|
3,564,539
|
|
|
Twelve Months Ended December 31, 2014
|
||||||||||||||||||||||
|
Commercial
|
|
Commercial Real Estate
|
|
Consumer
|
|
Residential
|
|
Finance
Leases |
|
Total
|
||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balances, January 1
|
$
|
27,176
|
|
|
$
|
23,102
|
|
|
$
|
2,515
|
|
|
$
|
15,077
|
|
|
|
|
|
$
|
67,870
|
|
|
Provision for losses
|
3,459
|
|
|
(464
|
)
|
|
423
|
|
|
(839
|
)
|
|
$
|
(19
|
)
|
|
2,560
|
|
|||||
Recoveries on loans
|
5,435
|
|
|
3,297
|
|
|
377
|
|
|
1,783
|
|
|
24
|
|
|
10,916
|
|
||||||
Loans charged off
|
(7,246
|
)
|
|
(6,608
|
)
|
|
(657
|
)
|
|
(2,869
|
)
|
|
(2
|
)
|
|
(17,382
|
)
|
||||||
Balances, December 31, 2014
|
$
|
28,824
|
|
|
$
|
19,327
|
|
|
$
|
2,658
|
|
|
$
|
13,152
|
|
|
$
|
3
|
|
|
$
|
63,964
|
|
|
Twelve Months Ended December 31, 2013
|
||||||||||||||||||||||
|
Commercial
|
|
Commercial Real Estate
|
|
Consumer
|
|
Residential
|
|
Finance
Leases |
|
Total
|
||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balances, January 1
|
$
|
25,913
|
|
|
$
|
26,703
|
|
|
$
|
2,593
|
|
|
$
|
14,157
|
|
|
|
|
|
$
|
69,366
|
|
|
Provision for losses
|
2,794
|
|
|
340
|
|
|
(11
|
)
|
|
3,514
|
|
|
$
|
11
|
|
|
6,648
|
|
|||||
Recoveries on loans
|
4,586
|
|
|
3,552
|
|
|
556
|
|
|
1,292
|
|
|
4
|
|
|
9,990
|
|
||||||
Loans charged off
|
(6,117
|
)
|
|
(7,493
|
)
|
|
(623
|
)
|
|
(3,886
|
)
|
|
(15
|
)
|
|
(18,134
|
)
|
||||||
Balances, December 31, 2013
|
$
|
27,176
|
|
|
$
|
23,102
|
|
|
$
|
2,515
|
|
|
$
|
15,077
|
|
|
|
|
|
$
|
67,870
|
|
|
Twelve Months Ended December 31, 2012
|
||||||||||||||||||||||
|
Commercial
|
|
Commercial Real Estate
|
|
Consumer
|
|
Residential
|
|
Finance
Leases |
|
Total
|
||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balances, January 1
|
$
|
17,731
|
|
|
$
|
37,919
|
|
|
$
|
2,902
|
|
|
$
|
12,343
|
|
|
$
|
3
|
|
|
$
|
70,898
|
|
Provision for losses
|
14,749
|
|
|
(2,546
|
)
|
|
126
|
|
|
6,176
|
|
|
29
|
|
|
18,534
|
|
||||||
Recoveries on loans
|
1,744
|
|
|
3,652
|
|
|
695
|
|
|
1,113
|
|
|
2
|
|
|
7,206
|
|
||||||
Loans charged off
|
(8,311
|
)
|
|
(12,322
|
)
|
|
(1,130
|
)
|
|
(5,475
|
)
|
|
(34
|
)
|
|
(27,272
|
)
|
||||||
Balances, December 31, 2012
|
$
|
25,913
|
|
|
$
|
26,703
|
|
|
$
|
2,593
|
|
|
$
|
14,157
|
|
|
|
|
|
$
|
69,366
|
|
|
December 31, 2014
|
||||||||||||||||||||||
|
Commercial
|
|
Commercial
Real Estate |
|
Consumer
|
|
Residential
|
|
Finance
Leases |
|
Total
|
||||||||||||
Allowance balances:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
$
|
1,455
|
|
|
$
|
470
|
|
|
|
|
|
$
|
194
|
|
|
|
|
$
|
2,119
|
|
|||
Collectively evaluated for impairment
|
27,369
|
|
|
18,207
|
|
|
$
|
2,658
|
|
|
12,958
|
|
|
$
|
3
|
|
|
61,195
|
|
||||
Loans acquired with deteriorated credit quality
|
|
|
|
650
|
|
|
|
|
|
|
|
|
|
|
|
650
|
|
||||||
Total Allowance for Loan Losses
|
$
|
28,824
|
|
|
$
|
19,327
|
|
|
$
|
2,658
|
|
|
$
|
13,152
|
|
|
$
|
3
|
|
|
$
|
63,964
|
|
Loan balances:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
$
|
16,108
|
|
|
$
|
23,963
|
|
|
|
|
|
$
|
4,022
|
|
|
|
|
$
|
44,093
|
|
|||
Collectively evaluated for impairment
|
1,011,122
|
|
|
1,796,797
|
|
|
$
|
73,400
|
|
|
925,282
|
|
|
$
|
1,106
|
|
|
3,807,707
|
|
||||
Loans acquired with deteriorated credit quality
|
9,403
|
|
|
59,122
|
|
|
|
|
|
4,540
|
|
|
|
|
|
73,065
|
|
||||||
Loans
|
$
|
1,036,633
|
|
|
$
|
1,879,882
|
|
|
$
|
73,400
|
|
|
$
|
933,844
|
|
|
$
|
1,106
|
|
|
$
|
3,924,865
|
|
|
December 31, 2013
|
||||||||||||||||||||||
|
Commercial
|
|
Commercial
Real Estate |
|
Consumer
|
|
Residential
|
|
Finance
Leases |
|
Total
|
||||||||||||
Allowance balances:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
$
|
585
|
|
|
$
|
763
|
|
|
|
|
|
$
|
6
|
|
|
|
|
$
|
1,354
|
|
|||
Collectively evaluated for impairment
|
26,493
|
|
|
22,208
|
|
|
$
|
2,515
|
|
|
15,071
|
|
|
|
|
|
66,287
|
|
|||||
Loans acquired with deteriorated credit quality
|
98
|
|
|
131
|
|
|
|
|
|
|
|
|
|
|
|
229
|
|
||||||
Total Allowance for Loan Losses
|
$
|
27,176
|
|
|
$
|
23,102
|
|
|
$
|
2,515
|
|
|
$
|
15,077
|
|
|
|
|
|
$
|
67,870
|
|
|
Loan balances:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
$
|
10,240
|
|
|
$
|
29,007
|
|
|
|
|
|
$
|
2,820
|
|
|
|
|
$
|
42,067
|
|
|||
Collectively evaluated for impairment
|
882,794
|
|
|
1,690,285
|
|
|
$
|
69,783
|
|
|
867,094
|
|
|
$
|
1,545
|
|
|
3,511,501
|
|
||||
Loans acquired with deteriorated credit quality
|
7,548
|
|
|
69,599
|
|
|
|
|
|
1,694
|
|
|
|
|
|
78,841
|
|
||||||
Loans
|
$
|
900,582
|
|
|
$
|
1,788,891
|
|
|
$
|
69,783
|
|
|
$
|
871,608
|
|
|
$
|
1,545
|
|
|
$
|
3,632,409
|
|
|
December 31, 2014
|
|
December 31, 2013
|
||||
Commercial and industrial loans
|
$
|
7,048
|
|
|
$
|
9,283
|
|
Agriculture production financing and other loans to farmers
|
5,800
|
|
|
30
|
|
||
Real estate loans:
|
|
|
|
|
|||
Construction
|
1,439
|
|
|
4,978
|
|
||
Commercial and farmland
|
19,350
|
|
|
28,095
|
|
||
Residential
|
12,933
|
|
|
12,068
|
|
||
Home equity
|
1,988
|
|
|
1,667
|
|
||
Individuals' loans for household and other personal expenditures
|
231
|
|
117
|
||||
Other loans
|
|
|
164
|
||||
Total
|
$
|
48,789
|
|
|
$
|
56,402
|
|
|
December 31, 2014
|
||||||||||||||||||
|
Unpaid Principal
Balance |
|
Recorded
Investment |
|
Related
Allowance |
|
Average Recorded Investment
|
|
Interest Income Recognized
|
||||||||||
Impaired loans with no related allowance:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial loans
|
$
|
35,514
|
|
|
$
|
18,029
|
|
|
|
|
$
|
18,711
|
|
|
$
|
362
|
|
||
Agriculture production financing and other loans to farmers
|
26
|
|
|
22
|
|
|
|
|
26
|
|
|
|
|||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction
|
12,956
|
|
|
9,318
|
|
|
|
|
9,837
|
|
|
427
|
|
||||||
Commercial and farmland
|
95,856
|
|
|
68,187
|
|
|
|
|
70,844
|
|
|
3,389
|
|
||||||
Residential
|
10,591
|
|
|
6,839
|
|
|
|
|
6,987
|
|
|
119
|
|
||||||
Home equity
|
3,590
|
|
|
398
|
|
|
|
|
402
|
|
|
|
|
||||||
Other loans
|
30
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total
|
$
|
158,563
|
|
|
$
|
102,793
|
|
|
|
|
$
|
106,807
|
|
|
$
|
4,297
|
|
||
Impaired loans with related allowance:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial loans
|
$
|
1,766
|
|
|
$
|
1,684
|
|
|
$
|
1,055
|
|
|
$
|
1,721
|
|
|
$
|
40
|
|
Agriculture production financing and other loans to farmers
|
6,777
|
|
|
5,777
|
|
|
400
|
|
|
8,044
|
|
|
1
|
|
|||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and farmland
|
7,159
|
|
|
4,971
|
|
|
1,120
|
|
|
4,999
|
|
|
24
|
|
|||||
Residential
|
1,001
|
|
|
998
|
|
|
194
|
|
|
1,000
|
|
|
|
|
|||||
Total
|
$
|
16,703
|
|
|
$
|
13,430
|
|
|
$
|
2,769
|
|
|
$
|
15,764
|
|
|
$
|
65
|
|
Total Impaired Loans
|
$
|
175,266
|
|
|
$
|
116,223
|
|
|
$
|
2,769
|
|
|
$
|
122,571
|
|
|
$
|
4,362
|
|
|
December 31, 2013
|
||||||||||||||||||
|
Unpaid Principal
Balance |
|
Recorded
Investment |
|
Related
Allowance |
|
Average Recorded Investment
|
|
Interest Income Recognized
|
||||||||||
Impaired loans with no related allowance:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial loans
|
$
|
35,066
|
|
|
$
|
16,371
|
|
|
|
|
|
$
|
19,209
|
|
|
$
|
192
|
|
|
Agriculture production financing and other loans to farmers
|
32
|
|
|
30
|
|
|
|
|
|
32
|
|
|
|
|
|||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction
|
16,109
|
|
|
10,625
|
|
|
|
|
11,621
|
|
|
117
|
|
||||||
Commercial and farmland
|
128,073
|
|
|
83,033
|
|
|
|
|
84,057
|
|
|
1,663
|
|
||||||
Residential
|
6,746
|
|
|
3,910
|
|
|
|
|
4,236
|
|
|
75
|
|
||||||
Home equity
|
3,299
|
|
|
112
|
|
|
|
|
225
|
|
|
|
|
||||||
Other loans
|
454
|
|
|
172
|
|
|
|
|
181
|
|
|
1
|
|
||||||
Total
|
$
|
189,779
|
|
|
$
|
114,253
|
|
|
|
|
$
|
119,561
|
|
|
$
|
2,048
|
|
||
Impaired loans with related allowance:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial loans
|
$
|
1,390
|
|
|
$
|
1,216
|
|
|
$
|
683
|
|
|
$
|
1,240
|
|
|
$
|
9
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial and farmland
|
4,657
|
|
|
4,215
|
|
|
894
|
|
|
4,291
|
|
|
9
|
|
|||||
Residential
|
74
|
|
|
71
|
|
|
6
|
|
|
76
|
|
|
|
|
|||||
Total
|
$
|
6,121
|
|
|
$
|
5,502
|
|
|
$
|
1,583
|
|
|
$
|
5,607
|
|
|
$
|
18
|
|
Total Impaired Loans
|
$
|
195,900
|
|
|
$
|
119,755
|
|
|
$
|
1,583
|
|
|
$
|
125,168
|
|
|
$
|
2,066
|
|
|
December 31, 2012
|
||||||||||||||||||
|
Unpaid Principal
Balance |
|
Recorded
Investment |
|
Related
Allowance |
|
Average Recorded Investment
|
|
Interest Income Recognized
|
||||||||||
Impaired loans with no related allowance:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial loans
|
$
|
28,532
|
|
|
$
|
11,730
|
|
|
|
|
$
|
15,089
|
|
|
$
|
124
|
|
||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction
|
9,787
|
|
|
5,164
|
|
|
|
|
6,471
|
|
|
66
|
|
||||||
Commercial and farmland
|
58,173
|
|
|
43,204
|
|
|
|
|
46,788
|
|
|
1,211
|
|
||||||
Residential
|
8,820
|
|
|
6,215
|
|
|
|
|
7,129
|
|
|
83
|
|
||||||
Home equity
|
4,199
|
|
|
1,006
|
|
|
|
|
1,022
|
|
|
13
|
|
||||||
Other loans
|
83
|
|
|
14
|
|
|
|
|
18
|
|
|
1
|
|
||||||
Total
|
$
|
109,594
|
|
|
$
|
67,333
|
|
|
|
|
$
|
76,517
|
|
|
$
|
1,498
|
|
||
Impaired loans with related allowance:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial loans
|
$
|
4,415
|
|
|
$
|
4,155
|
|
|
$
|
1,628
|
|
|
$
|
4,225
|
|
|
$
|
33
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction
|
1,202
|
|
|
1,058
|
|
|
105
|
|
|
1,175
|
|
|
|
||||||
Commercial and farmland
|
5,579
|
|
|
5,182
|
|
|
2,460
|
|
|
5,239
|
|
|
95
|
|
|||||
Residential
|
1,722
|
|
|
1,451
|
|
|
50
|
|
|
1,458
|
|
|
75
|
|
|||||
Total
|
$
|
12,918
|
|
|
$
|
11,846
|
|
|
$
|
4,243
|
|
|
$
|
12,097
|
|
|
$
|
203
|
|
Total Impaired Loans
|
$
|
122,512
|
|
|
$
|
79,179
|
|
|
$
|
4,243
|
|
|
$
|
88,614
|
|
|
$
|
1,701
|
|
•
|
Pass - Loans that are considered to be of acceptable credit quality.
|
•
|
Special Mention - Loans which possess some credit deficiency or potential weakness, which deserves close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Corporation's credit position at some future date. Special mention assets are not adversely classified and do not expose the Corporation to sufficient risk to warrant adverse classification. The key distinctions of this category's classification are that it is indicative of an unwarranted level of risk; and weaknesses are considered “potential”, not “defined”, impairments to the primary source of repayment. Examples include businesses that may be suffering from inadequate management, loss of key personnel or significant customer or litigation.
|
•
|
Substandard - A substandard loan is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified have a well-defined weakness that jeopardizes the liquidation of the debt. They are characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected. Other characteristics may include:
|
|
o
|
the likelihood that a loan will be paid from the primary source of repayment is uncertain or financial deterioration is underway and very close attention is warranted to ensure that the loan is collected without loss,
|
|
o
|
the primary source of repayment is gone, and the Corporation is forced to rely on a secondary source of repayment, such as collateral liquidation or guarantees,
|
|
o
|
loans have a distinct possibility that the Corporation will sustain some loss if deficiencies are not corrected,
|
|
o
|
unusual courses of action are needed to maintain a high probability of repayment,
|
|
o
|
the borrower is not generating enough cash flow to repay loan principal; however, it continues to make interest payments,
|
|
o
|
the Corporation is forced into a subordinated or unsecured position due to flaws in documentation,
|
|
o
|
loans have been restructured so that payment schedules, terms and collateral represent concessions to the borrower when compared to the normal loan terms,
|
|
o
|
the Corporation is seriously contemplating foreclosure or legal action due to the apparent deterioration of the loan, and
|
|
o
|
there is significant deterioration in market conditions to which the borrower is highly vulnerable.
|
•
|
Doubtful - Loans that have all of the weaknesses of those classified as Substandard. However, based on currently existing facts, conditions and values, these weaknesses make full collection of principal highly questionable and improbable. Other credit characteristics may include the primary source of repayment is gone or there is considerable doubt as to the quality of the secondary sources of repayment. The possibility of loss is high, but because of certain important pending factors that may strengthen the loan, loss classification is deferred until the exact status of repayment is known.
|
•
|
Loss – Loans that are considered uncollectible and of such little value that continuing to carry them as an asset is not warranted. Loans will be classified as Loss when it is neither practical not desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be possible at some time in the future.
|
|
December 31, 2014
|
||||||||||||||||||||||||||||
|
Commercial Pass
|
|
Commercial Special Mention
|
|
Commercial Substandard
|
|
Commercial Doubtful
|
|
Commercial Loss
|
|
Consumer Performing
|
|
Consumer
Non Performing |
|
Total
|
||||||||||||||
Commercial and industrial loans
|
$
|
823,732
|
|
|
$
|
24,455
|
|
|
$
|
48,226
|
|
|
$
|
275
|
|
|
|
|
|
|
|
|
$
|
896,688
|
|
||||
Agriculture production financing and other loans to farmers
|
96,155
|
|
|
1,195
|
|
|
7,577
|
|
|
|
|
|
|
|
|
|
|
104,927
|
|
||||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction
|
185,394
|
|
|
3,164
|
|
|
2,928
|
|
|
|
|
|
|
$
|
15,588
|
|
|
$
|
147
|
|
|
207,221
|
|
||||||
Commercial and farmland
|
1,552,781
|
|
|
29,484
|
|
|
90,161
|
|
|
|
|
|
|
|
|
|
|
235
|
|
|
1,672,661
|
|
|||||||
Residential
|
149,430
|
|
|
6,321
|
|
|
10,918
|
|
|
|
|
|
|
|
470,972
|
|
|
9,674
|
|
|
647,315
|
|
|||||||
Home equity
|
6,368
|
|
|
12
|
|
|
690
|
|
|
|
|
|
|
277,571
|
|
|
1,888
|
|
|
286,529
|
|
||||||||
Individuals' loans for household and other personal expenditures
|
|
|
|
|
|
|
|
|
|
|
73,165
|
|
|
235
|
|
|
73,400
|
|
|||||||||||
Lease financing receivables, net of unearned income
|
998
|
|
|
|
|
108
|
|
|
|
|
|
|
|
|
|
|
|
1,106
|
|
||||||||||
Other loans
|
35,018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35,018
|
|
|||||||||
Loans
|
$
|
2,849,876
|
|
|
$
|
64,631
|
|
|
$
|
160,608
|
|
|
$
|
275
|
|
|
|
|
$
|
837,296
|
|
|
$
|
12,179
|
|
|
$
|
3,924,865
|
|
|
December 31, 2013
|
||||||||||||||||||||||||||||
|
Commercial Pass
|
|
Commercial Special Mention
|
|
Commercial Substandard
|
|
Commercial Doubtful
|
|
Commercial Loss
|
|
Consumer Performing
|
|
Consumer
Non Performing |
|
Total
|
||||||||||||||
Commercial and industrial loans
|
$
|
708,835
|
|
|
$
|
11,332
|
|
|
$
|
41,013
|
|
|
$
|
525
|
|
|
|
|
|
|
|
|
$
|
761,705
|
|
||||
Agriculture production financing and other loans to farmers
|
114,318
|
|
|
|
|
|
30
|
|
|
|
|
|
|
|
|
|
|
114,348
|
|
||||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction
|
162,976
|
|
|
1,132
|
|
|
12,029
|
|
|
|
|
|
|
|
|
|
$
|
945
|
|
|
177,082
|
|
|||||||
Commercial and farmland
|
1,473,714
|
|
|
57,676
|
|
|
80,184
|
|
|
|
|
|
|
|
|
|
|
235
|
|
|
1,611,809
|
|
|||||||
Residential
|
143,657
|
|
|
2,232
|
|
|
11,494
|
|
|
136
|
|
|
|
|
$
|
448,494
|
|
|
10,372
|
|
|
616,385
|
|
||||||
Home equity
|
6,194
|
|
|
35
|
|
|
1,184
|
|
|
|
|
|
|
246,101
|
|
|
1,709
|
|
|
255,223
|
|
||||||||
Individuals' loans for household and other personal expenditures
|
|
|
|
|
|
|
|
|
|
|
69,666
|
|
|
117
|
|
|
69,783
|
|
|||||||||||
Lease financing receivables, net of unearned income
|
1,420
|
|
|
|
|
125
|
|
|
|
|
|
|
|
|
|
|
|
|
1,545
|
|
|||||||||
Other loans
|
24,334
|
|
|
|
|
|
195
|
|
|
|
|
|
|
|
|
|
|
|
24,529
|
|
|||||||||
Loans
|
$
|
2,635,448
|
|
|
$
|
72,407
|
|
|
$
|
146,254
|
|
|
$
|
661
|
|
|
|
|
$
|
764,261
|
|
|
$
|
13,378
|
|
|
$
|
3,632,409
|
|
|
December 31, 2014
|
||||||||||||||||||||||||||
|
Current
|
|
30-59 Days
Past Due |
|
60-89 Days
Past Due |
|
Loans > 90 Days
And Accruing |
|
Non-Accrual
|
|
Total Past Due
& Non-Accrual |
|
Total
|
||||||||||||||
Commercial and industrial loans
|
$
|
882,596
|
|
|
$
|
4,006
|
|
|
$
|
53
|
|
|
$
|
2,985
|
|
|
$
|
7,048
|
|
|
$
|
14,092
|
|
|
$
|
896,688
|
|
Agriculture production financing and other loans to farmers
|
98,236
|
|
|
891
|
|
|
|
|
|
|
|
|
5,800
|
|
|
6,691
|
|
|
104,927
|
|
|||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction
|
204,683
|
|
|
1,017
|
|
|
82
|
|
|
|
|
1,439
|
|
|
2,538
|
|
|
207,221
|
|
||||||||
Commercial and farmland
|
1,642,016
|
|
|
9,846
|
|
|
778
|
|
|
671
|
|
|
19,350
|
|
|
30,645
|
|
|
1,672,661
|
|
|||||||
Residential
|
626,821
|
|
|
4,876
|
|
|
1,831
|
|
|
854
|
|
|
12,933
|
|
|
20,494
|
|
|
647,315
|
|
|||||||
Home equity
|
282,828
|
|
|
1,213
|
|
|
352
|
|
|
148
|
|
|
1,988
|
|
|
3,701
|
|
|
286,529
|
|
|||||||
Individuals' loans for household and other personal expenditures
|
72,853
|
|
|
258
|
|
|
53
|
|
|
5
|
|
|
231
|
|
|
547
|
|
|
73,400
|
|
|||||||
Lease financing receivables, net of unearned income
|
1,106
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,106
|
|
||||||||||
Other loans
|
35,018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35,018
|
|
|||||||||||
Loans
|
$
|
3,846,157
|
|
|
$
|
22,107
|
|
|
$
|
3,149
|
|
|
$
|
4,663
|
|
|
$
|
48,789
|
|
|
$
|
78,708
|
|
|
$
|
3,924,865
|
|
|
December 31, 2013
|
||||||||||||||||||||||||||
|
Current
|
|
30-59 Days
Past Due |
|
60-89 Days
Past Due |
|
Loans > 90 Days
And Accruing |
|
Non-Accrual
|
|
Total Past Due
& Non-Accrual |
|
Total
|
||||||||||||||
Commercial and industrial loans
|
$
|
749,020
|
|
|
$
|
2,628
|
|
|
$
|
774
|
|
|
|
|
|
$
|
9,283
|
|
|
$
|
12,685
|
|
|
$
|
761,705
|
|
|
Agriculture production financing and other loans to farmers
|
114,305
|
|
|
13
|
|
|
|
|
|
|
|
|
30
|
|
|
43
|
|
|
114,348
|
|
|||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction
|
171,046
|
|
|
1,058
|
|
|
|
|
|
|
4,978
|
|
|
6,036
|
|
|
177,082
|
|
|||||||||
Commercial and farmland
|
1,573,403
|
|
|
3,807
|
|
|
5,801
|
|
|
$
|
703
|
|
|
28,095
|
|
|
38,406
|
|
|
1,611,809
|
|
||||||
Residential
|
595,192
|
|
|
7,156
|
|
|
1,475
|
|
|
494
|
|
|
12,068
|
|
|
21,193
|
|
|
616,385
|
|
|||||||
Home equity
|
251,188
|
|
|
1,652
|
|
|
563
|
|
|
153
|
|
|
1,667
|
|
|
4,035
|
|
|
255,223
|
|
|||||||
Individuals' loans for household and other personal expenditures
|
69,061
|
|
|
550
|
|
|
55
|
|
|
|
|
117
|
|
|
722
|
|
|
69,783
|
|
||||||||
Lease financing receivables, net of unearned income
|
1,545
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,545
|
|
||||||||||
Other loans
|
24,365
|
|
|
|
|
|
|
|
|
164
|
|
|
164
|
|
|
24,529
|
|
||||||||||
Loans
|
$
|
3,549,125
|
|
|
$
|
16,864
|
|
|
$
|
8,668
|
|
|
$
|
1,350
|
|
|
$
|
56,402
|
|
|
$
|
83,284
|
|
|
$
|
3,632,409
|
|
|
December 31, 2014
|
|||||||||
|
Pre-Modification
Recorded Balance |
|
Post-Modification
Recorded Balance |
|
Number
of Loans |
|||||
Real estate loans:
|
|
|
|
|
|
|||||
Commercial and farmland
|
$
|
259
|
|
|
$
|
259
|
|
|
1
|
|
Residential
|
632
|
|
|
622
|
|
|
9
|
|
||
Home equity
|
320
|
|
|
350
|
|
|
11
|
|
||
Individuals' loans for household and other personal expenditures
|
26
|
|
|
26
|
|
|
2
|
|
||
Total
|
$
|
1,237
|
|
|
$
|
1,257
|
|
|
23
|
|
|
December 31, 2013
|
|||||||||
|
Pre-Modification
Recorded Balance |
|
Post-Modification
Recorded Balance |
|
Number
of Loans |
|||||
Commercial and industrial loans
|
$
|
295
|
|
|
$
|
316
|
|
|
5
|
|
Real estate loans:
|
|
|
|
|
|
|||||
Commercial and farmland
|
6,506
|
|
|
5,492
|
|
|
11
|
|
||
Residential
|
809
|
|
|
804
|
|
|
12
|
|
||
Individuals' loans for household and other personal expenditures
|
143
|
|
|
145
|
|
|
4
|
|
||
Total
|
$
|
7,753
|
|
|
$
|
6,757
|
|
|
32
|
|
|
December 31, 2014
|
||||||||||||||
|
Term
Modification |
|
Rate
Modification |
|
Combination
|
|
Total
Modification |
||||||||
Real estate loans:
|
|
|
|
|
|
|
|
||||||||
Commercial and farmland
|
$
|
288
|
|
|
|
|
|
|
|
|
$
|
288
|
|
||
Residential
|
31
|
|
|
$
|
218
|
|
|
$
|
360
|
|
|
609
|
|
||
Home equity
|
|
|
100
|
|
|
243
|
|
|
343
|
|
|||||
Individuals' loans for household and other personal expenditures
|
|
|
|
|
23
|
|
|
23
|
|
||||||
Total
|
$
|
319
|
|
|
$
|
318
|
|
|
$
|
626
|
|
|
$
|
1,263
|
|
|
December 31, 2013
|
||||||||||||||
|
Term
Modification |
|
Rate
Modification |
|
Combination
|
|
Total
Modification |
||||||||
Commercial and industrial loans
|
$
|
207
|
|
|
|
|
$
|
60
|
|
|
$
|
267
|
|
||
Real estate loans:
|
|
|
|
|
|
|
|
||||||||
Commercial and farmland
|
1,388
|
|
|
|
|
|
1,985
|
|
|
3,373
|
|
||||
Residential
|
167
|
|
|
$
|
237
|
|
|
351
|
|
|
755
|
|
|||
Individuals' loans for household and other personal expenditures
|
61
|
|
|
38
|
|
|
25
|
|
|
124
|
|
||||
Total
|
$
|
1,823
|
|
|
$
|
275
|
|
|
$
|
2,421
|
|
|
$
|
4,519
|
|
|
Twelve Months Ended December 31, 2014
|
|||||
|
Number of Loans
|
|
Recorded Balance
|
|||
Real estate loans:
|
|
|
|
|||
Residential
|
1
|
|
|
$
|
70
|
|
Total
|
1
|
|
|
$
|
70
|
|
|
Twelve Months Ended December 31, 2013
|
|||||
|
Number of Loans
|
|
Recorded Balance
|
|||
Commercial and industrial loans
|
3
|
|
|
$
|
173
|
|
Real estate loans:
|
|
|
|
|||
Commercial and farmland
|
2
|
|
|
1,034
|
|
|
Total
|
5
|
|
|
$
|
1,207
|
|
|
December 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||||||
|
Community
|
|
CFS
|
|
SCB
|
|
Total
|
|
CFS
|
|
SCB
|
|
Total
|
||||||||||||||
Outstanding Balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial loans
|
$
|
8,168
|
|
|
$
|
64,897
|
|
|
$
|
6,059
|
|
|
$
|
79,124
|
|
|
$
|
81,303
|
|
|
$
|
8,184
|
|
|
$
|
89,487
|
|
Agricultural production financing and other loans to farmers
|
1,100
|
|
|
|
|
|
893
|
|
|
1,993
|
|
|
|
|
|
1,161
|
|
|
1,161
|
|
|||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction
|
19,063
|
|
|
9,113
|
|
|
|
|
|
28,176
|
|
|
17,962
|
|
|
|
|
|
17,962
|
|
|||||||
Commercial and farmland
|
74,600
|
|
|
251,002
|
|
|
15,593
|
|
|
341,195
|
|
|
311,631
|
|
|
23,418
|
|
|
335,049
|
|
|||||||
Residential
|
28,863
|
|
|
144,396
|
|
|
7,384
|
|
|
180,643
|
|
|
166,754
|
|
|
9,359
|
|
|
176,113
|
|
|||||||
Home Equity
|
9,881
|
|
|
39,244
|
|
|
15,758
|
|
|
64,883
|
|
|
49,042
|
|
|
18,236
|
|
|
67,278
|
|
|||||||
Individuals' loans for household and other personal expenditures
|
1,314
|
|
|
922
|
|
|
121
|
|
|
2,357
|
|
|
2,360
|
|
|
269
|
|
|
2,629
|
|
|||||||
Other Loans
|
|
|
|
86
|
|
|
|
|
|
86
|
|
|
$
|
132
|
|
|
$
|
407
|
|
|
$
|
539
|
|
||||
Total
|
$
|
142,989
|
|
|
$
|
509,660
|
|
|
$
|
45,808
|
|
|
$
|
698,457
|
|
|
$
|
629,184
|
|
|
$
|
61,034
|
|
|
$
|
690,218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Carrying Amount
|
$
|
134,198
|
|
|
$
|
484,949
|
|
|
$
|
39,324
|
|
|
$
|
658,471
|
|
|
$
|
585,913
|
|
|
$
|
50,269
|
|
|
$
|
636,182
|
|
Allowance
|
|
|
|
650
|
|
|
|
|
|
650
|
|
|
|
|
|
229
|
|
|
229
|
|
|||||||
Carrying Amount Net of Allowance
|
$
|
134,198
|
|
|
$
|
484,299
|
|
|
$
|
39,324
|
|
|
$
|
657,821
|
|
|
$
|
585,913
|
|
|
$
|
50,040
|
|
|
$
|
635,953
|
|
|
Twelve months ended
|
||||||||||||||||||||||||||||||
|
December 31, 2014
|
|
December 31, 2013
|
|
December 31, 2012
|
||||||||||||||||||||||||||
|
Community
|
|
CFS
|
|
SCB
|
|
Total
|
|
CFS
|
|
SCB
|
|
Total
|
|
SCB
|
||||||||||||||||
Beginning balance
|
|
|
|
$
|
13,435
|
|
|
$
|
5,864
|
|
|
$
|
19,299
|
|
|
|
|
$
|
5,142
|
|
|
$
|
5,142
|
|
|
$
|
—
|
|
|||
Additions
|
$
|
5,687
|
|
|
|
|
|
|
|
|
5,687
|
|
|
$
|
13,599
|
|
|
|
|
13,599
|
|
|
|
||||||||
Accretion
|
(394
|
)
|
|
(6,431
|
)
|
|
(2,058
|
)
|
|
(8,883
|
)
|
|
(164
|
)
|
|
(2,071
|
)
|
|
(2,235
|
)
|
|
9,774
|
|
||||||||
Reclassification from nonaccretable
|
119
|
|
|
4,501
|
|
|
799
|
|
|
5,419
|
|
|
|
|
2,888
|
|
|
2,888
|
|
|
(4,632
|
)
|
|||||||||
Disposals
|
|
|
|
(1,594
|
)
|
|
(492
|
)
|
|
(2,086
|
)
|
|
|
|
(95
|
)
|
|
(95
|
)
|
|
—
|
|
|||||||||
Ending balance
|
$
|
5,412
|
|
|
$
|
9,911
|
|
|
$
|
4,113
|
|
|
$
|
19,436
|
|
|
$
|
13,435
|
|
|
$
|
5,864
|
|
|
$
|
19,299
|
|
|
$
|
5,142
|
|
|
Community - 2014
|
|
CFS - 2013
|
||||
Contractually required payments receivable at acquisition date
|
$
|
26,032
|
|
|
$
|
109,839
|
|
Nonaccretable difference
|
3,498
|
|
|
22,679
|
|
||
Expected cash flows at acquisition date
|
22,534
|
|
|
87,160
|
|
||
Accretable difference
|
2,234
|
|
|
3,502
|
|
||
Basis in loans at acquisition date
|
$
|
20,300
|
|
|
$
|
83,658
|
|
|
2014
|
|
2013
|
||||
Cost at December 31:
|
|
|
|
||||
Land
|
$
|
19,373
|
|
|
$
|
17,992
|
|
Buildings and Leasehold Improvements
|
99,451
|
|
|
92,693
|
|
||
Equipment
|
56,606
|
|
|
54,274
|
|
||
Total Cost
|
175,430
|
|
|
164,959
|
|
||
Accumulated Depreciation and Amortization
|
(97,739
|
)
|
|
(90,505
|
)
|
||
Net
|
$
|
77,691
|
|
|
$
|
74,454
|
|
|
Future Minimum Rental Commitments
|
||
2015
|
$
|
2,778
|
|
2016
|
2,207
|
|
|
2017
|
1,514
|
|
|
2018
|
844
|
|
|
2019
|
537
|
|
|
After 2019
|
2,724
|
|
|
Total Future Minimum Obligations
|
$
|
10,604
|
|
|
2014
|
|
2013
|
||||
Balance, January 1
|
$
|
188,948
|
|
|
$
|
141,375
|
|
Goodwill acquired
|
13,776
|
|
|
47,573
|
|
||
Balance, December 31
|
$
|
202,724
|
|
|
$
|
188,948
|
|
|
2014
|
|
2013
|
||||
Gross carrying amount
|
$
|
53,702
|
|
|
$
|
46,389
|
|
Core deposit intangible and other intangibles acquired
|
4,658
|
|
|
7,313
|
|
||
Accumulated amortization
|
(42,329
|
)
|
|
(39,884
|
)
|
||
Core Deposit and Other Intangibles
|
$
|
16,031
|
|
|
$
|
13,818
|
|
|
Amortization Expense
|
||
2015
|
$
|
2,884
|
|
2016
|
2,817
|
|
|
2017
|
2,723
|
|
|
2018
|
1,542
|
|
|
2019
|
1,293
|
|
|
After 2019
|
4,772
|
|
|
Total Future Minimum Obligations
|
$
|
16,031
|
|
|
December 31, 2014
|
|
December 31, 2013
|
||||
Demand deposits
|
$
|
2,146,492
|
|
|
$
|
2,018,650
|
|
Savings deposits
|
1,376,707
|
|
|
1,257,994
|
|
||
Certificates and other time deposits of $100,000 or more
|
260,685
|
|
|
272,660
|
|
||
Other certificates and time deposits
|
523,010
|
|
|
595,110
|
|
||
Brokered deposits
|
333,800
|
|
|
87,054
|
|
||
Total deposits
|
$
|
4,640,694
|
|
|
$
|
4,231,468
|
|
|
December 31, 2014
|
|
December 31, 2013
|
||||
Federal funds purchased
|
$
|
15,381
|
|
|
$
|
125,645
|
|
Securities sold under repurchase agreements
|
124,539
|
|
|
148,672
|
|
||
Federal Home Loan Bank advances
|
145,264
|
|
|
122,140
|
|
||
Subordinated debentures and term loans
|
126,810
|
|
|
126,807
|
|
||
Total Borrowings
|
$
|
411,994
|
|
|
$
|
523,264
|
|
Maturities in Years Ending December 31:
|
Securities Sold
Under Repurchase Agreements |
|
Federal Home
Loan Bank Advances |
|
Subordinated
Debentures and Term Loans |
||||||
2015
|
$
|
124,539
|
|
|
$
|
30,780
|
|
|
$
|
108
|
|
2016
|
|
|
41,225
|
|
|
|
|||||
2017
|
|
|
|
15,018
|
|
|
|
||||
2018
|
|
|
25,637
|
|
|
|
|
||||
2019
|
|
|
12,503
|
|
|
|
|||||
After 2019
|
|
|
20,101
|
|
|
126,702
|
|
||||
|
$
|
124,539
|
|
|
$
|
145,264
|
|
|
$
|
126,810
|
|
•
|
First Merchants Capital Trust II
. The subordinated debenture, entered into on July 2, 2007, for
$56,702,000
will mature on September 15, 2037. The Corporation could not redeem the debenture prior to September 15, 2012, and redemption is subject to the prior approval of the Board of Governors of the Federal Reserve System, as required by law or regulation. Interest was fixed at
6.495 percent
for the period from the date of issuance through September 15, 2012; interest is now an annual floating rate equal to the three-month LIBOR plus
1.56 percent
, reset quarterly. Interest is payable in March, June, September and December of each year. The interest rate at
December 31, 2014
was
1.8 percent
. The Corporation holds all of the outstanding common securities of First Merchants Capital Trust II.
|
•
|
On November 1, 2013, the Corporation completed the private issuance and sale to
four
institutional investors of an aggregate of
$70 million
of debt comprised of (a)
5.00 percent
Fixed-to-Floating Rate Senior Notes due 2028 in the aggregate principal amount of
$5 million
(the "Senior Debt") and (b)
6.75 percent
Fixed-to-Floating Rate Subordinated Notes due 2028 in the aggregate principal amount of
$65 million
(the "Subordinated Debt"). The interest rate on the Senior Debt and Subordinated Debt remains fixed for the first ten (10) years and will become floating thereafter. The Senior Debt agreement contains certain customary representations and warranties and financial and negative covenants. As of
December 31, 2014
, the Corporation was in compliance with these covenants. The net proceeds of the placement were used to pay off the Corporation's
$55 million
credit facility with Bank of America, N.A. which was scheduled to mature on February 15, 2015.
|
•
|
U.S. Bank, N.A.
On April 11, 2014, the Corporation entered into a line of credit agreement with U.S. Bank, N.A. with a maximum borrowing capacity of
$20 million
. As of December 31, 2014, there was no outstanding balance on the line of credit. Interest is payable quarterly based on one-month LIBOR plus
2.00 percent
. The line of credit has a quarterly facility fee of
0.25 percent
on the unused balance. The maturity date for the line of credit is April 10, 2015. The line of credit agreement contains certain customary representations and warranties and financial and negative covenants. As of December 31, 2104, the Corporation was in compliance with these covenants.
|
•
|
First Merchants Capital Trust II
. The subordinated debenture, entered into on July 2, 2007, for
$56,702,000
will mature on September 15, 2037. The Corporation could not redeem the debenture prior to September 15, 2012, and redemption is subject to the prior approval of the Board of Governors of the Federal Reserve System, as required by law or regulation. Interest was fixed at
6.495 percent
for the period from the date of issuance through September 15, 2012; interest is now an annual floating rate equal to the three-month LIBOR plus
1.56 percent
, reset quarterly. Interest is payable in March, June, September and December of each year. The interest rate at December 31, 2013 was
1.7 percent
. The Corporation holds all of the outstanding common securities of First Merchants Capital Trust II.
|
•
|
On November 1, 2013, the Corporation completed the private issuance and sale to
four
institutional investors of an aggregate of
$70 million
of debt comprised of (a)
5.00 percent
Fixed-to-Floating Rate Senior Notes due 2028 in the aggregate principal amount of
$5 million
(the "Senior Debt") and (b)
6.75 percent
Fixed-to-Floating Rate Subordinated Notes due 2028 in the aggregate principal amount of
$65 million
(the "Subordinated Debt"). The interest rate on the Senior Debt and Subordinated Debt remains fixed for the first ten (10) years and will become floating thereafter. The Senior Debt agreement contains certain customary representations and warranties and financial and negative covenants. As of December 31, 2013, the Corporation was in compliance with these covenants. The net proceeds of the placement were used to pay off the Corporation's
$55 million
credit facility with Bank of America, N.A. which was scheduled to mature on February 15, 2015.
|
•
|
Bank of America, N.A.
The Corporation had a
$55 million
credit facility with Bank of America, N.A. comprised of (a) a term loan in the principal amount of
$5 million
(the “Term Loan”) and (b) a subordinated debenture in the principal amount of
$50 million
(the “Subordinated Debt”). Pursuant to the terms of the underlying Loan Agreement (the “Loan Agreement”), the Term Loan and the Subordinated Debt would have matured on February 15, 2015. The Term Loan was secured by a pledge of all of the issued and outstanding shares of the Bank. On November 1, 2013, the Corporation used a portion of the proceeds from the
$70 million
subordinated debt placement to pay-off the Bank of America
$55 million
credit facility.
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||||||||||||||
|
December 31, 2014
|
|
December 31, 2013
|
|
December 31, 2014
|
|
December 31, 2013
|
||||||||||||||||
|
Balance Sheet Location
|
|
Fair
Value |
|
Balance Sheet Location
|
|
Fair
Value |
|
Balance Sheet Location
|
|
Fair
Value |
|
Balance Sheet Location
|
|
Fair
Value |
||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
Other Assets
|
|
$
|
137
|
|
|
Other Assets
|
|
$
|
1,162
|
|
|
Other Liabilities
|
|
$
|
2,650
|
|
|
Other Liabilities
|
|
$
|
1,021
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
Other Assets
|
|
$
|
3,730
|
|
|
Other Assets
|
|
$
|
2,847
|
|
|
Other Liabilities
|
|
$
|
3,887
|
|
|
Other Liabilities
|
|
$
|
2,932
|
|
Derivatives Not
Designated as Hedging Instruments under FASB ASC 815-10 |
Location of Gain
(Loss) Recognized in Income on Derivative |
Amount of Gain (Loss)
Recognized in Income on Derivative for the Year Ended December 31, 2014 |
|
Amount of Gain (Loss)
Recognized in Income on Derivative for the Year Ended December 31, 2013 |
|
Amount of Gain (Loss)
Recognized in Income on Derivative for the Year Ended December 31, 2012 |
||||||
Interest rate contracts
|
Other income
|
$
|
(73
|
)
|
|
$
|
247
|
|
|
$
|
(79
|
)
|
Derivatives in Cash Flow Hedging Relationships
|
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative
(Effective Portion) For the Year Ended |
|
Location of Loss Reclassified from Accumulated Other Comprehensive Income (Effective Portion)
|
|
Amount of Loss Reclassified from Other Comprehensive Income into Income
(Effective Portion) For the Year Ended |
||||||||||||||||
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
2012
|
||||||||||||
Interest rate products
|
$
|
(3,996
|
)
|
|
$
|
2,374
|
|
|
Interest expense
|
|
$
|
(1,411
|
)
|
|
$
|
(935
|
)
|
|
$
|
(217
|
)
|
|
Available for Sale Securities
|
||||||
|
For The Year Ended
|
||||||
|
December 31, 2014
|
|
December 31, 2013
|
||||
Beginning Balance
|
$
|
9,977
|
|
|
$
|
18,328
|
|
Included in other comprehensive income
|
3,656
|
|
|
1,330
|
|
||
Purchases, issuances, and settlements
|
|
|
7,590
|
|
|||
Transfers in/(out) of Level 3
|
|
|
(16,434
|
)
|
|||
Principal payments
|
(6,987
|
)
|
|
(837
|
)
|
||
Ending balance
|
$
|
6,646
|
|
|
$
|
9,977
|
|
|
Quoted Prices in Active
Markets for Identical Assets |
|
Significant Other Observable Inputs
|
|
Significant
Unobservable Inputs |
|
|
||||
December 31, 2013
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
Reason for Transfer
|
||||
Transfers to/(from) Level:
|
|
|
|
|
|
|
|
||||
Available for sale securities
|
|
|
$
|
(350
|
)
|
|
$
|
350
|
|
|
Selected state and municipal securities were transferred from Level 2 to Level 3 due to limited availability of similar securities in active markets.
|
Available for sale securities transferred to held to maturity
|
|
|
|
|
$
|
(16,784
|
)
|
|
Selected state and municipal securities were transferred from available for sale to held to maturity. These securities are valued at amortized cost and are no longer classified within the fair value hierarchy.
|
|
|
|
|
Fair Value Measurements Using
|
||||||||
|
|
|
|
Quoted Prices in Active
Markets for Identical Assets |
|
Significant Other Observable Inputs
|
|
Significant
Unobservable Inputs |
||||
December 31, 2014
|
|
Fair Value
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||
Impaired Loans (collateral dependent)
|
|
$
|
17,134
|
|
|
|
|
|
|
$
|
17,134
|
|
Other real estate owned
|
|
$
|
5,155
|
|
|
|
|
|
|
$
|
5,155
|
|
|
|
|
|
Fair Value Measurements Using
|
||||||||
|
|
|
|
Quoted Prices in Active
Markets for Identical Assets |
|
Significant Other Observable Inputs
|
|
Significant
Unobservable Inputs |
||||
December 31, 2013
|
|
Fair Value
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||
Impaired Loans (collateral dependent)
|
|
$
|
12,117
|
|
|
|
|
|
|
$
|
12,117
|
|
Other real estate owned
|
|
$
|
6,877
|
|
|
|
|
|
|
$
|
6,877
|
|
December 31, 2014
|
Fair Value
|
|
Valuation Technique
|
|
Unobservable Inputs
|
|
Range (Weighted-Average)
|
||
State and municipal securities
|
$
|
6,611
|
|
|
Discounted cash flow
|
|
Maturity Call Date
US Muni BQ curve Discount rate |
|
1 month to 15 years
A- to BBB- .90% - 5% |
|
|
|
|
|
|
|
|
||
Corporate obligations and Equity securities
|
$
|
35
|
|
|
Discounted cash flow
|
|
Risk free rate
plus Premium for illiquidity |
|
3 month LIBOR
plus 200 bps |
|
|
|
|
|
|
|
|
||
Impaired loans (collateral dependent)
|
$
|
17,134
|
|
|
Collateral based measurements
|
|
Discount to reflect current market conditions and ultimate collectability
|
|
0% - 50% (3%)
|
|
|
|
|
|
|
|
|
||
Other real estate owned
|
$
|
5,155
|
|
|
Appraisals
|
|
Discount to reflect current market conditions
|
|
0% - 20% (7%)
|
December 31, 2013
|
Fair Value
|
|
Valuation Technique
|
|
Unobservable Inputs
|
|
Range (Weighted-Average)
|
||
State and municipal securities
|
$
|
7,235
|
|
|
Discounted cash flow
|
|
Maturity Call Date
US Muni BQ curve Discount rate |
|
1 month to 15 years
A- to BBB- 1% - 5% |
|
|
|
|
|
|
|
|
||
Corporate obligations and Equity securities
|
$
|
2,742
|
|
|
Discounted cash flow
|
|
Risk free rate
plus Premium for illiquidity |
|
3 month LIBOR
plus 200 bps |
|
|
|
|
|
|
|
|
||
Impaired loans (collateral dependent)
|
$
|
12,117
|
|
|
Collateral based measurements
|
|
Discount to reflect current market conditions and ultimate collectability
|
|
0% - 50% (3%)
|
|
|
|
|
|
|
|
|
||
Other real estate owned
|
$
|
6,877
|
|
|
Appraisals
|
|
Discount to reflect current market conditions
|
|
0% - 20% (2%)
|
|
2014
|
||||||||||||||
|
Carrying
Amount |
|
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
|
Significant Other Observable Inputs
(Level 2) |
|
Significant Unobservable Inputs
(Level 3) |
||||||||
Assets at December 31:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
118,616
|
|
|
$
|
118,616
|
|
|
|
|
|
|
|
||
Interest-bearing time deposits
|
47,520
|
|
|
47,520
|
|
|
|
|
|
|
|
||||
Investment securities available for sale
|
549,543
|
|
|
|
|
|
$
|
542,897
|
|
|
$
|
6,646
|
|
||
Investment securities held to maturity
|
631,088
|
|
|
|
|
|
614,457
|
|
|
33,266
|
|
||||
Loans held for sale
|
7,235
|
|
|
|
|
|
7,235
|
|
|
|
|
||||
Loans
|
3,860,901
|
|
|
|
|
|
|
|
|
3,810,912
|
|
||||
FRB and FHLB stock
|
41,353
|
|
|
|
|
|
41,353
|
|
|
|
|
||||
Interest rate swap asset
|
3,867
|
|
|
|
|
|
3,867
|
|
|
|
|
||||
Interest receivable
|
19,984
|
|
|
|
|
|
19,984
|
|
|
|
|
||||
Liabilities at December 31:
|
|
|
|
|
|
|
|
||||||||
Deposits
|
$
|
4,640,694
|
|
|
$
|
3,523,199
|
|
|
$
|
1,099,610
|
|
|
|
|
|
Borrowings:
|
|
|
|
|
|
|
|
||||||||
Federal funds purchased
|
15,381
|
|
|
|
|
|
15,381
|
|
|
|
|
||||
Securities sold under repurchase agreements
|
124,539
|
|
|
|
|
|
124,539
|
|
|
|
|
||||
FHLB Advances
|
145,264
|
|
|
|
|
|
146,669
|
|
|
|
|
||||
Subordinated debentures and term loans
|
126,810
|
|
|
|
|
|
92,802
|
|
|
|
|
||||
Interest rate swap liability
|
6,537
|
|
|
|
|
|
6,537
|
|
|
|
|
||||
Interest payable
|
3,201
|
|
|
|
|
|
3,201
|
|
|
|
|
|
2013
|
||||||||||||||
|
Carrying
Amount |
|
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
|
Significant Other Observable Inputs
(Level 2) |
|
Significant Unobservable Inputs
(Level 3) |
||||||||
Assets at December 31:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
109,434
|
|
|
$
|
109,434
|
|
|
|
|
|
|
|
||
Interest-bearing time deposits
|
55,069
|
|
|
55,069
|
|
|
|
|
|
|
|
||||
Investment securities available for sale
|
536,201
|
|
|
|
|
|
$
|
526,224
|
|
|
$
|
9,977
|
|
||
Investment securities held to maturity
|
559,378
|
|
|
|
|
|
525,998
|
|
|
34,849
|
|
||||
Loans held for sale
|
5,331
|
|
|
|
|
|
5,331
|
|
|
|
|
||||
Loans
|
3,564,539
|
|
|
|
|
|
|
|
|
3,506,615
|
|
||||
FRB and FHLB stock
|
38,990
|
|
|
|
|
|
38,990
|
|
|
|
|
||||
Interest rate swap asset
|
4,009
|
|
|
|
|
|
4,009
|
|
|
|
|
||||
Interest receivable
|
18,672
|
|
|
|
|
|
18,672
|
|
|
|
|
||||
Liabilities at December 31:
|
|
|
|
|
|
|
|
||||||||
Deposits
|
$
|
4,231,468
|
|
|
$
|
3,082,117
|
|
|
$
|
934,937
|
|
|
|
|
|
Borrowings:
|
|
|
|
|
|
|
|
||||||||
Federal funds purchased
|
125,645
|
|
|
|
|
|
125,645
|
|
|
|
|
||||
Securities sold under repurchase agreements
|
148,672
|
|
|
|
|
|
148,852
|
|
|
|
|
||||
FHLB Advances
|
122,140
|
|
|
|
|
|
122,962
|
|
|
|
|
||||
Subordinated debentures and term loans
|
126,807
|
|
|
|
|
|
82,607
|
|
|
|
|
||||
Interest rate swap liability
|
3,953
|
|
|
|
|
|
3,953
|
|
|
|
|
||||
Interest payable
|
1,771
|
|
|
|
|
1,771
|
|
|
|
|
2014
|
|
2013
|
||||
Amounts of commitments:
|
|
|
|
||||
Loan commitments to extend credit
|
$
|
1,617,552
|
|
|
$
|
1,216,470
|
|
Standby letters of credit
|
$
|
52,655
|
|
|
$
|
41,508
|
|
|
Accumulated Other Comprehensive Income (Loss)
|
||||||||||||||||||
|
Unrealized Gains (Losses) on Securities Available for Sale
|
|
Unrealized Gains (Losses) on Securities Available for Sale for which a Portion of Other-Than-Temporary Impairment has been Recognized in Income
|
|
Unrealized Gains (Losses) on Cash Flow Hedges
|
|
Unrealized Gains (Losses) on Defined Benefit Plans
|
|
Total
|
||||||||||
Balance at December 31, 2013
|
$
|
1,566
|
|
|
$
|
(1,847
|
)
|
|
$
|
(501
|
)
|
|
$
|
(5,628
|
)
|
|
$
|
(6,410
|
)
|
Other comprehensive income before reclassifications
|
14,860
|
|
|
1,847
|
|
|
(2,599
|
)
|
|
(7,580
|
)
|
|
6,528
|
|
|||||
Amounts reclassified from accumulated other comprehensive income
|
(2,328
|
)
|
|
|
|
|
918
|
|
|
(338
|
)
|
|
(1,748
|
)
|
|||||
Period change
|
12,532
|
|
|
1,847
|
|
|
(1,681
|
)
|
|
(7,918
|
)
|
|
4,780
|
|
|||||
Balance at December 31, 2014
|
$
|
14,098
|
|
|
$
|
—
|
|
|
$
|
(2,182
|
)
|
|
$
|
(13,546
|
)
|
|
$
|
(1,630
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at December 31, 2012
|
$
|
17,904
|
|
|
$
|
(3,272
|
)
|
|
$
|
(2,652
|
)
|
|
$
|
(17,479
|
)
|
|
$
|
(5,499
|
)
|
Other comprehensive income before reclassifications
|
(16,021
|
)
|
|
1,425
|
|
|
1,543
|
|
|
10,704
|
|
|
(2,349
|
)
|
|||||
Amounts reclassified from accumulated other comprehensive income
|
(317
|
)
|
|
|
|
|
608
|
|
|
1,147
|
|
|
1,438
|
|
|||||
Period change
|
(16,338
|
)
|
|
1,425
|
|
|
2,151
|
|
|
11,851
|
|
|
(911
|
)
|
|||||
Balance at December 31, 2013
|
$
|
1,566
|
|
|
$
|
(1,847
|
)
|
|
$
|
(501
|
)
|
|
$
|
(5,628
|
)
|
|
$
|
(6,410
|
)
|
|
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Year Ended December 31,
|
|
|
||||||||||
Details about Accumulated Other Comprehensive Income (Loss) Components
|
2014
|
|
2013
|
|
2012
|
|
Affected Line Item in the Statements of Income
|
||||||
Unrealized gains (losses) on available for sale securities (1)
|
|
|
|
|
|
|
|
||||||
Realized securities gains reclassified into income
|
$
|
3,581
|
|
|
$
|
487
|
|
|
$
|
2,389
|
|
|
Other income - net realized gains on sales of available for sale securities
|
Related income tax expense
|
(1,253
|
)
|
|
(170
|
)
|
|
(835
|
)
|
|
Income tax expense
|
|||
|
$
|
2,328
|
|
|
$
|
317
|
|
|
$
|
1,554
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized gains (losses) on cash flow hedges (2)
|
|
|
|
|
|
|
|
||||||
Interest rate contracts
|
$
|
(1,411
|
)
|
|
$
|
(935
|
)
|
|
$
|
(217
|
)
|
|
Interest expense - subordinated debentures and term loans
|
Related income tax benefit
|
493
|
|
|
327
|
|
|
76
|
|
|
Income tax expense
|
|||
|
$
|
(918
|
)
|
|
$
|
(608
|
)
|
|
$
|
(141
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized gains (losses) on defined benefit plans
|
|
|
|
|
|
|
|
||||||
Amortization of net loss and prior service costs
|
$
|
520
|
|
|
$
|
(1,765
|
)
|
|
$
|
100
|
|
|
Other expenses - salaries and employee benefits
|
Related income tax benefit (expense)
|
(182
|
)
|
|
618
|
|
|
(35
|
)
|
|
Income tax expense
|
|||
|
$
|
338
|
|
|
$
|
(1,147
|
)
|
|
$
|
65
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total reclassifications for the period, net of tax
|
$
|
1,748
|
|
|
$
|
(1,438
|
)
|
|
1,478
|
|
|
|
|
2014
|
|
2013
|
||||||||||||||||||||||||
|
|
|
|
|
Required For
|
|
|
|
|
|
Required For
|
||||||||||||||||
|
Actual
|
|
Adequate Capital
|
|
Actual
|
|
Adequate Capital
|
||||||||||||||||||||
December 31,
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
||||||||||||
Total Capital (to Risk-weighted Assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
First Merchants Corporation
|
$
|
685,507
|
|
|
15.34
|
%
|
|
$
|
357,581
|
|
|
8.00
|
%
|
|
$
|
599,966
|
|
|
14.54
|
%
|
|
$
|
330,107
|
|
|
8.00
|
%
|
First Merchants Bank
|
653,169
|
|
|
14.64
|
|
|
356,884
|
|
|
8.00
|
|
|
599,272
|
|
|
14.56
|
|
|
329,344
|
|
|
8.00
|
|
||||
Tier I Capital (to Risk-weighted Assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
First Merchants Corporation
|
$
|
564,535
|
|
|
12.63
|
%
|
|
$
|
178,791
|
|
|
4.00
|
%
|
|
$
|
483,186
|
|
|
11.71
|
%
|
|
$
|
165,053
|
|
|
4.00
|
%
|
First Merchants Bank
|
597,305
|
|
|
13.39
|
|
|
178,442
|
|
|
4.00
|
|
|
547,655
|
|
|
13.30
|
|
|
164,672
|
|
|
4.00
|
|
||||
Tier I Capital (to Average Assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
First Merchants Corporation
|
$
|
564,535
|
|
|
10.15
|
%
|
|
$
|
222,533
|
|
|
4.00
|
%
|
|
$
|
483,186
|
|
|
10.20
|
%
|
|
$
|
189,485
|
|
|
4.00
|
%
|
First Merchants Bank
|
597,305
|
|
|
10.56
|
|
|
226,339
|
|
|
4.00
|
|
|
547,655
|
|
|
11.58
|
|
|
189,095
|
|
|
4.00
|
|
|
2014
|
|
2013
|
|
2012
|
|
|||
Risk-free interest rate
|
2.41
|
%
|
|
1.25
|
%
|
|
1.36
|
%
|
|
Expected price volatility
|
45.05
|
%
|
|
45.68
|
%
|
|
46.22
|
%
|
|
Dividend yield
|
2.73
|
%
|
|
2.96
|
%
|
|
3.29
|
%
|
|
Forfeiture rate
|
5.46
|
%
|
|
4.73
|
%
|
|
4.77
|
%
|
|
Weighted-average expected life, until exercise
|
7.74
|
|
years
|
7.27
|
|
years
|
7.20
|
|
years
|
|
Year Ended
December 31, |
|
Year Ended
December 31, |
|
Year Ended
December 31, |
||||||
|
2014
|
|
2013
|
|
2012
|
||||||
Stock and ESPP Options
|
|
|
|
|
|
||||||
Pre-tax compensation expense
|
$
|
237
|
|
|
$
|
253
|
|
|
$
|
284
|
|
Income tax benefit
|
(47
|
)
|
|
(16
|
)
|
|
(23
|
)
|
|||
Stock and ESPP option expense, net of income taxes
|
$
|
190
|
|
|
$
|
237
|
|
|
$
|
261
|
|
Restricted Stock Awards
|
|
|
|
|
|
||||||
Pre-tax compensation expense
|
$
|
1,940
|
|
|
$
|
1,520
|
|
|
$
|
1,208
|
|
Income tax benefit
|
(679
|
)
|
|
(531
|
)
|
|
(428
|
)
|
|||
Restricted stock awards expense, net of income taxes
|
$
|
1,261
|
|
|
$
|
989
|
|
|
$
|
780
|
|
Total Share-Based Compensation:
|
|
|
|
|
|
||||||
Pre-tax compensation expense
|
$
|
2,177
|
|
|
$
|
1,773
|
|
|
$
|
1,492
|
|
Income tax benefit
|
(726
|
)
|
|
(547
|
)
|
|
(451
|
)
|
|||
Total share-based compensation expense, net of income taxes
|
$
|
1,451
|
|
|
$
|
1,226
|
|
|
$
|
1,041
|
|
|
Number of
Shares |
|
Weighted-Average
Exercise Price |
|
Weighted Average
Remaining Contractual Term (in Years) |
|
Aggregate
Intrinsic Value |
||||
Outstanding at January 1, 2014
|
958,786
|
|
|
$
|
21.32
|
|
|
|
|
|
|
Granted
|
13,500
|
|
|
$
|
21.65
|
|
|
|
|
|
|
Exercised
|
(41,249
|
)
|
|
$
|
12.21
|
|
|
|
|
|
|
Canceled
|
(193,106
|
)
|
|
$
|
24.42
|
|
|
|
|
|
|
Outstanding December 31, 2014
|
737,931
|
|
|
$
|
20.99
|
|
|
3.08
|
|
2,645,356
|
|
Vested and Expected to Vest at December 31, 2014
|
737,931
|
|
|
$
|
20.99
|
|
|
3.08
|
|
2,645,356
|
|
Exercisable at December 31, 2014
|
715,431
|
|
|
$
|
21.05
|
|
|
2.90
|
|
2,563,636
|
|
|
Number of
Shares |
|
Weighted-Average
Grant Date Fair Value |
|||
Unvested RSAs at January 1, 2014
|
429,002
|
|
|
$
|
12.51
|
|
Granted
|
98,611
|
|
|
$
|
20.54
|
|
Forfeited
|
(9,717
|
)
|
|
$
|
15.78
|
|
Vested
|
(132,446
|
)
|
|
$
|
9.16
|
|
Unvested RSAs at December 31, 2014
|
385,450
|
|
|
$
|
15.65
|
|
|
2014
|
|
2013
|
||||
Change in Benefit Obligation:
|
|
|
|
||||
Benefit obligation at beginning of year
|
$
|
62,270
|
|
|
$
|
69,166
|
|
Service cost
|
73
|
|
|
131
|
|
||
Interest cost
|
3,235
|
|
|
2,670
|
|
||
Actuarial loss (gain)
|
12,968
|
|
|
(5,597
|
)
|
||
Benefits paid
|
(5,541
|
)
|
|
(4,100
|
)
|
||
Net transfers in from CFS acquisition
|
7,645
|
|
|
|
|||
Benefit obligation at end of year
|
$
|
80,650
|
|
|
$
|
62,270
|
|
|
|
|
|
||||
Change in Plan Assets:
|
|
|
|
||||
Fair value of plan assets at beginning of year
|
$
|
69,871
|
|
|
$
|
62,865
|
|
Actual return on plan assets
|
5,232
|
|
|
10,610
|
|
||
Employer contributions
|
504
|
|
|
496
|
|
||
Benefits paid
|
(5,541
|
)
|
|
(4,100
|
)
|
||
CFS acquisition
|
7,073
|
|
|
|
|
||
End of year
|
77,139
|
|
|
69,871
|
|
||
Funded status at end of year
|
$
|
(3,511
|
)
|
|
$
|
7,601
|
|
|
|
|
|
||||
Assets and Liabilities Recognized in the Balance Sheets:
|
|
|
|
||||
Deferred tax asset
|
$
|
8,541
|
|
|
$
|
4,266
|
|
Assets
|
$
|
1,329
|
|
|
$
|
12,383
|
|
Liabilities
|
$
|
4,840
|
|
|
$
|
4,782
|
|
|
|
|
|
||||
Amounts Recognized in Accumulated Other Comprehensive Income Not Yet Recognized as Components of Net Periodic (Benefit) Cost Consist of:
|
|
|
|
||||
Accumulated loss
|
$
|
(15,863
|
)
|
|
$
|
(7,922
|
)
|
Prior service credit
|
(346
|
)
|
|
(28
|
)
|
||
|
$
|
(16,209
|
)
|
|
$
|
(7,950
|
)
|
|
December 31, 2014
|
|
December 31, 2013
|
||||
Projected benefit obligation
|
$
|
4,840
|
|
|
$
|
4,782
|
|
Accumulated benefit obligation
|
$
|
4,840
|
|
|
$
|
4,782
|
|
Fair value of plan assets
|
|
|
|
|
|
|
December 31, 2014
|
|
December 31, 2013
|
|
December 31, 2012
|
||||||
Service cost
|
$
|
73
|
|
|
$
|
131
|
|
|
$
|
161
|
|
Interest cost
|
3,235
|
|
|
2,670
|
|
|
2,990
|
|
|||
Expected return on plan assets
|
(4,467
|
)
|
|
(4,265
|
)
|
|
(4,216
|
)
|
|||
Amortization of prior service costs
|
81
|
|
|
25
|
|
|
25
|
|
|||
Amortization of net loss
|
478
|
|
|
2,131
|
|
|
2,207
|
|
|||
Net periodic pension (benefit) cost
|
$
|
(600
|
)
|
|
$
|
692
|
|
|
$
|
1,167
|
|
|
December 31, 2014
|
|
December 31, 2013
|
|
December 31, 2012
|
||||||
Net periodic pension (benefit) cost
|
$
|
(600
|
)
|
|
$
|
692
|
|
|
$
|
1,167
|
|
Net gain (loss)
|
(12,203
|
)
|
|
11,942
|
|
|
(1,242
|
)
|
|||
Amortization of loss
|
478
|
|
|
2,131
|
|
|
2,207
|
|
|||
Amortization of prior service cost
|
81
|
|
|
25
|
|
|
25
|
|
|||
Total recognized in other comprehensive income (loss)
|
(11,644
|
)
|
|
14,098
|
|
|
990
|
|
|||
Total recognized in net periodic pension cost and other comprehensive income (loss)
|
$
|
(11,044
|
)
|
|
$
|
13,406
|
|
|
$
|
(177
|
)
|
|
December 31, 2014
|
|
December 31, 2013
|
|
December 31, 2012
|
||||||
Amortization of net loss
|
$
|
(1,770
|
)
|
|
$
|
(533
|
)
|
|
$
|
(2,158
|
)
|
Amortization of prior service cost
|
(64
|
)
|
|
(25
|
)
|
|
(25
|
)
|
|||
Total
|
$
|
(1,834
|
)
|
|
$
|
(558
|
)
|
|
$
|
(2,183
|
)
|
|
December 31, 2014
|
|
December 31, 2013
|
|
December 31, 2012
|
|||
Weighted-average Assumptions Used to Determine Benefit Obligation:
|
|
|
|
|
|
|||
Discount rate
|
4.00
|
%
|
|
4.80
|
%
|
|
4.00
|
%
|
Rate of compensation increase for accruing active participants
|
3.00
|
%
|
|
3.00
|
%
|
|
3.00
|
%
|
Weighted-average Assumptions Used to Determine Cost:
|
|
|
|
|
|
|||
Discount rate
|
4.80
|
%
|
|
4.00
|
%
|
|
4.50
|
%
|
Expected return on plan assets
|
6.00
|
%
|
|
7.00
|
%
|
|
7.00
|
%
|
Rate of compensation increase for accruing active participants
|
3.00
|
%
|
|
3.00
|
%
|
|
4.00
|
%
|
2015
|
$
|
4,761
|
|
2016
|
4,757
|
|
|
2017
|
4,751
|
|
|
2018
|
4,783
|
|
|
2019
|
4,997
|
|
|
After 2019
|
25,125
|
|
|
|
$
|
49,174
|
|
|
December 31, 2014
|
|
December 31, 2013
|
||||||||
|
Actual
|
|
Target
|
|
Actual
|
|
Target
|
||||
Cash and cash equivalents
|
2.6
|
%
|
|
2.0
|
%
|
|
2.7
|
%
|
|
2.0
|
%
|
Equity securities
|
58.7
|
|
|
60.0
|
|
|
62.2
|
|
|
60.0
|
|
Debt securities
|
36.5
|
|
|
36.0
|
|
|
33.2
|
|
|
36.0
|
|
Alternative investments
|
2.2
|
|
|
2.0
|
|
|
1.9
|
|
|
2.0
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
Fair Value Measurements Using
|
||||||||||||
|
|
|
Quoted Prices in
Active Markets for
Identical Assets
|
|
Significant Other Observable Inputs
|
|
Significant
Unobservable
Inputs
|
||||||||
December 31, 2014
|
Fair Value
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||||||
Cash & Cash Equivalents
|
$
|
2,032
|
|
|
$
|
2,032
|
|
|
|
|
|
||||
Corporate Bonds and Notes
|
9,384
|
|
|
9,384
|
|
|
|
|
|
||||||
Government Agency and Municipal Bonds and Notes
|
8,252
|
|
|
|
|
$
|
8,252
|
|
|
|
|||||
Certificates of Deposit
|
1,001
|
|
|
|
|
1,001
|
|
|
|
||||||
Party-in-Interest Investments
|
|
|
|
|
|
|
|
||||||||
Common Stock
|
1,376
|
|
|
1,376
|
|
|
|
|
|
||||||
Common Bond Fund
|
4,615
|
|
|
|
|
4,615
|
|
|
|
||||||
Common Equity Fund
|
5,858
|
|
|
|
|
5,858
|
|
|
|
||||||
Mutual Funds
|
|
|
|
|
|
|
|
||||||||
Taxable Bond
|
4,987
|
|
|
4,987
|
|
|
|
|
|
|
|||||
Large Cap Equity
|
21,185
|
|
|
21,185
|
|
|
|
|
|
||||||
Mid Cap Equity
|
9,434
|
|
|
9,434
|
|
|
|
|
|
||||||
Small Cap Equity
|
3,872
|
|
|
3,872
|
|
|
|
|
|
||||||
International Equity
|
3,474
|
|
|
3,474
|
|
|
|
|
|
||||||
Specialty Alternative Equity
|
1,669
|
|
|
1,669
|
|
|
|
|
|
||||||
|
$
|
77,139
|
|
|
$
|
57,413
|
|
|
$
|
19,726
|
|
|
$
|
—
|
|
|
|
|
Fair Value Measurements Using
|
||||||||||||
|
|
|
Quoted Prices in
Active Markets for Identical Assets |
|
Significant Other Observable Inputs
|
|
Significant
Unobservable Inputs |
||||||||
December 31, 2013
|
Fair Value
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||||||
Cash & Cash Equivalents
|
$
|
1,864
|
|
|
$
|
1,864
|
|
|
|
|
|
||||
Corporate Bonds and Notes
|
6,076
|
|
|
6,076
|
|
|
|
|
|
||||||
Government Agency and Municipal Bonds and Notes
|
8,263
|
|
|
|
|
$
|
8,263
|
|
|
|
|||||
Certificates of Deposit
|
607
|
|
|
|
|
607
|
|
|
|
||||||
Party-in-Interest Investments
|
|
|
|
|
|
|
|
||||||||
Common Stock
|
1,375
|
|
|
1,375
|
|
|
|
|
|
||||||
Common Bond Fund
|
5,318
|
|
|
|
|
5,318
|
|
|
|
||||||
Common Equity Fund
|
4,507
|
|
|
|
|
4,507
|
|
|
|
||||||
Mutual Funds
|
|
|
|
|
|
|
|
||||||||
Taxable Bond
|
3,901
|
|
|
3,901
|
|
|
|
|
|
||||||
Large Cap Equity
|
20,617
|
|
|
20,617
|
|
|
|
|
|
||||||
Mid Cap Equity
|
8,721
|
|
|
8,721
|
|
|
|
|
|
||||||
Small Cap Equity
|
3,584
|
|
|
3,584
|
|
|
|
|
|
||||||
International Equity
|
3,727
|
|
|
3,727
|
|
|
|
|
|
||||||
Specialty Alternative Equity
|
1,311
|
|
|
1,311
|
|
|
|
|
|
||||||
|
$
|
69,871
|
|
|
$
|
51,176
|
|
|
$
|
18,695
|
|
|
$
|
—
|
|
|
2014
|
|
2013
|
|
2012
|
||||||
Income Tax Expense for the Year Ended December 31:
|
|
|
|
|
|
||||||
Currently Payable:
|
|
|
|
|
|
||||||
Federal
|
$
|
(1,661
|
)
|
|
$
|
738
|
|
|
$
|
(23
|
)
|
State
|
|
|
|
|
|
|
|||||
Deferred:
|
|
|
|
|
|
||||||
Federal
|
22,541
|
|
|
13,939
|
|
|
15,890
|
|
|||
State
|
510
|
|
|
|
|
|
|
||||
Total Income Tax Expense
|
$
|
21,390
|
|
|
$
|
14,677
|
|
|
$
|
15,867
|
|
Reconciliation of Federal Statutory to Actual Tax Expense:
|
|
|
|
|
|
||||||
Federal Statutory Income Tax at 35%
|
$
|
28,543
|
|
|
$
|
20,722
|
|
|
$
|
21,347
|
|
Tax-exempt Interest Income
|
(5,148
|
)
|
|
(3,923
|
)
|
|
(3,716
|
)
|
|||
Stock Compensation
|
36
|
|
|
50
|
|
|
76
|
|
|||
Earnings on Life Insurance
|
(1,271
|
)
|
|
(905
|
)
|
|
(1,187
|
)
|
|||
Tax Credits
|
(911
|
)
|
|
(857
|
)
|
|
(73
|
)
|
|||
Other
|
141
|
|
|
(410
|
)
|
|
(580
|
)
|
|||
Actual Tax Expense
|
$
|
21,390
|
|
|
$
|
14,677
|
|
|
$
|
15,867
|
|
|
2014
|
|
2013
|
||||
Deferred Tax Asset at December 31:
|
|
|
|
||||
Assets:
|
|
|
|
||||
Differences in Accounting for Loan Losses
|
$
|
26,665
|
|
|
$
|
28,064
|
|
Differences in Accounting for Loan Fees
|
747
|
|
|
736
|
|
||
Differences in Accounting for Loans and Securities
|
9,910
|
|
|
13,579
|
|
||
Deferred Compensation
|
5,234
|
|
|
5,479
|
|
||
Difference in Accounting for Pensions and Other Employee Benefits
|
1,084
|
|
|
|
|
||
Federal & State Income Tax Loss Carryforward and Credits
|
23,977
|
|
|
24,981
|
|
||
Net Unrealized Loss on Securities Available for Sale
|
|
|
|
151
|
|
||
Other
|
8,535
|
|
|
12,828
|
|
||
Total Assets
|
76,152
|
|
|
85,818
|
|
||
Liabilities:
|
|
|
|
||||
Differences in Depreciation Methods
|
8,220
|
|
|
8,008
|
|
||
Difference in Accounting for Pensions and Other Employee Benefits
|
|
|
|
1,096
|
|
||
State Income Tax
|
591
|
|
|
354
|
|
||
Net Unrealized Gain on Securities Available for Sale
|
7,591
|
|
|
|
|
||
Gain on FDIC Modified Whole Bank Transaction
|
1,694
|
|
|
2,147
|
|
||
Other
|
1,096
|
|
|
1,257
|
|
||
Total Liabilities
|
19,192
|
|
|
12,862
|
|
||
Net Deferred Tax Asset Before Valuation Allowance
|
56,960
|
|
|
72,956
|
|
||
Valuation allowance:
|
|
|
|
||||
Beginning Balance
|
(17,171
|
)
|
|
(13,859
|
)
|
||
Decrease/(Increase) During the Year
|
(397
|
)
|
|
(3,312
|
)
|
||
Ending Balance
|
(17,568
|
)
|
|
(17,171
|
)
|
||
Net Deferred Tax Asset
|
$
|
39,392
|
|
|
$
|
55,785
|
|
|
2014
|
|
2013
|
|
2012
|
|||||||||||||||||||||||||||
|
|
|
Weighted-Average Shares
|
|
|
|
|
|
Weighted-Average Shares
|
|
|
|
|
|
Weighted-Average Shares
|
|
|
|||||||||||||||
Basic net income per share:
|
$
|
60,162
|
|
|
|
|
|
|
$
|
44,530
|
|
|
|
|
|
|
$
|
45,122
|
|
|
|
|
|
|||||||||
Preferred stock dividends
|
|
|
|
|
|
|
|
(2,380
|
)
|
|
|
|
|
|
(4,539
|
)
|
|
|
|
|
||||||||||||
Net income available to common stockholders
|
60,162
|
|
|
36,266,356
|
|
|
$
|
1.66
|
|
|
42,150
|
|
|
29,731,420
|
|
|
$
|
1.42
|
|
|
40,583
|
|
|
28,632,915
|
|
|
$
|
1.42
|
|
|||
Effect of dilutive stock options and warrants
|
|
|
288,253
|
|
|
|
|
|
|
276,960
|
|
|
|
|
|
|
213,769
|
|
|
|
||||||||||||
Diluted net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income available to common stockholders
|
$
|
60,162
|
|
|
36,554,609
|
|
|
$
|
1.65
|
|
|
$
|
42,150
|
|
|
30,008,380
|
|
|
$
|
1.41
|
|
|
$
|
40,583
|
|
|
28,846,684
|
|
|
$
|
1.41
|
|
|
2014
|
|
2013
|
||||||||||||||||||||||||||||
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
||||||||||||||||
Interest income
|
$
|
51,009
|
|
|
$
|
51,527
|
|
|
$
|
53,290
|
|
|
$
|
53,053
|
|
|
$
|
43,738
|
|
|
$
|
40,653
|
|
|
$
|
40,736
|
|
|
$
|
45,707
|
|
Interest expense
|
5,117
|
|
|
5,408
|
|
|
5,424
|
|
|
5,893
|
|
|
4,280
|
|
|
4,003
|
|
|
3,714
|
|
|
4,572
|
|
||||||||
Net interest income
|
45,892
|
|
|
46,119
|
|
|
47,866
|
|
|
47,160
|
|
|
39,458
|
|
|
36,650
|
|
|
37,022
|
|
|
41,135
|
|
||||||||
Provision for loan losses
|
|
|
|
|
1,600
|
|
|
960
|
|
|
2,102
|
|
|
1,997
|
|
|
1,533
|
|
|
1,016
|
|
||||||||||
Net interest income after provision for loan losses
|
45,892
|
|
|
46,119
|
|
|
46,266
|
|
|
46,200
|
|
|
37,356
|
|
|
34,653
|
|
|
35,489
|
|
|
40,119
|
|
||||||||
Non-interest income
|
15,186
|
|
|
15,933
|
|
|
18,294
|
|
|
16,254
|
|
|
13,877
|
|
|
14,059
|
|
|
11,800
|
|
|
15,073
|
|
||||||||
Non-interest expense
|
43,089
|
|
|
41,250
|
|
|
42,576
|
|
|
41,677
|
|
|
34,700
|
|
|
33,742
|
|
|
34,219
|
|
|
40,558
|
|
||||||||
Income before income tax expense
|
17,989
|
|
|
20,802
|
|
|
21,984
|
|
|
20,777
|
|
|
16,533
|
|
|
14,970
|
|
|
13,070
|
|
|
14,634
|
|
||||||||
Income tax expense
|
4,369
|
|
|
5,642
|
|
|
5,862
|
|
|
5,517
|
|
|
4,668
|
|
|
4,155
|
|
|
2,667
|
|
|
3,187
|
|
||||||||
Net income
|
13,620
|
|
|
15,160
|
|
|
16,122
|
|
|
15,260
|
|
|
11,865
|
|
|
10,815
|
|
|
10,403
|
|
|
11,447
|
|
||||||||
Preferred stock dividends
|
|
|
|
|
|
|
|
|
(857
|
)
|
|
(852
|
)
|
|
(430
|
)
|
|
(241
|
)
|
||||||||||||
Net income available to common stockholders
|
$
|
13,620
|
|
|
$
|
15,160
|
|
|
$
|
16,122
|
|
|
$
|
15,260
|
|
|
$
|
11,008
|
|
|
$
|
9,963
|
|
|
$
|
9,973
|
|
|
$
|
11,206
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic EPS
|
$
|
0.38
|
|
|
$
|
0.42
|
|
|
$
|
0.45
|
|
|
$
|
0.41
|
|
|
$
|
0.38
|
|
|
$
|
0.35
|
|
|
$
|
0.35
|
|
|
$
|
0.34
|
|
Diluted EPS
|
$
|
0.38
|
|
|
$
|
0.41
|
|
|
$
|
0.45
|
|
|
$
|
0.41
|
|
|
$
|
0.38
|
|
|
$
|
0.34
|
|
|
$
|
0.35
|
|
|
$
|
0.34
|
|
Average Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic
|
35,956,436
|
|
|
36,026,763
|
|
|
36,054,867
|
|
|
37,018,014
|
|
|
28,716,987
|
|
|
28,783,407
|
|
|
28,806,809
|
|
|
32,597,145
|
|
||||||||
Diluted
|
36,260,624
|
|
|
36,294,149
|
|
|
36,328,981
|
|
|
37,323,276
|
|
|
28,971,238
|
|
|
29,023,513
|
|
|
29,081,472
|
|
|
32,912,605
|
|
|
December 31, 2014
|
|
December 31, 2013
|
||||
Assets
|
|
|
|
||||
Cash
|
$
|
36,044
|
|
|
$
|
13,228
|
|
Investment in subsidiaries
|
820,123
|
|
|
745,818
|
|
||
Goodwill
|
448
|
|
|
448
|
|
||
Other assets
|
6,281
|
|
|
8,695
|
|
||
Total assets
|
$
|
862,896
|
|
|
$
|
768,189
|
|
Liabilities
|
|
|
|
||||
Borrowings
|
$
|
126,702
|
|
|
$
|
126,702
|
|
Other liabilities
|
9,367
|
|
|
6,564
|
|
||
Total liabilities
|
136,069
|
|
|
133,266
|
|
||
Stockholders' equity
|
726,827
|
|
|
634,923
|
|
||
Total liabilities and stockholders' equity
|
$
|
862,896
|
|
|
$
|
768,189
|
|
|
December 31, 2014
|
|
December 31, 2013
|
|
December 31, 2012
|
||||||
Income
|
|
|
|
|
|
|
|
|
|||
Dividends from subsidiaries
|
$
|
53,231
|
|
|
$
|
63,732
|
|
|
$
|
30,096
|
|
Other income
|
538
|
|
|
45
|
|
|
85
|
|
|||
Total income
|
53,769
|
|
|
63,777
|
|
|
30,181
|
|
|||
Expenses
|
|
|
|
|
|
||||||
Interest expense
|
6,616
|
|
|
3,531
|
|
|
4,655
|
|
|||
Salaries and employee benefits
|
3,128
|
|
|
3,284
|
|
|
3,194
|
|
|||
Net occupancy and equipment expenses
|
442
|
|
|
258
|
|
|
312
|
|
|||
Telephone expenses
|
27
|
|
|
42
|
|
|
30
|
|
|||
Postage and courier expenses
|
|
|
|
|
|
|
1
|
|
|||
Other expenses
|
1,972
|
|
|
2,617
|
|
|
1,502
|
|
|||
Total expenses
|
12,185
|
|
|
9,732
|
|
|
9,694
|
|
|||
Income before income tax benefit and equity in undistributed income of subsidiaries
|
41,584
|
|
|
54,045
|
|
|
20,487
|
|
|||
Income tax benefit
|
3,999
|
|
|
3,153
|
|
|
3,316
|
|
|||
Income before equity in undistributed income of subsidiaries
|
45,583
|
|
|
57,198
|
|
|
23,803
|
|
|||
Equity in undistributed (distributions in excess of) income of subsidiaries
|
14,579
|
|
|
(12,668
|
)
|
|
21,319
|
|
|||
Net income
|
60,162
|
|
|
44,530
|
|
|
45,122
|
|
|||
Preferred stock dividends and discount accretion
|
|
|
|
(2,380
|
)
|
|
(4,539
|
)
|
|||
Net income available to common stockholders
|
$
|
60,162
|
|
|
$
|
42,150
|
|
|
$
|
40,583
|
|
|
|
|
|
|
|
||||||
Net income
|
$
|
60,162
|
|
|
$
|
44,530
|
|
|
$
|
45,122
|
|
Other comprehensive income (loss)
|
4,780
|
|
|
(911
|
)
|
|
(1,897
|
)
|
|||
Comprehensive income
|
$
|
64,942
|
|
|
$
|
43,619
|
|
|
$
|
43,225
|
|
|
Year Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
Cash Flow From Operating Activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
60,162
|
|
|
$
|
44,530
|
|
|
$
|
45,122
|
|
Adjustments to Reconcile Net Income to Net Cash:
|
|
|
|
|
|
||||||
Share-based compensation
|
887
|
|
|
778
|
|
|
632
|
|
|||
Distributions in excess of (equity in undistributed) income of subsidiaries
|
(14,579
|
)
|
|
12,668
|
|
|
(21,319
|
)
|
|||
Net Change in:
|
|
|
|
|
|
||||||
Other assets
|
2,425
|
|
|
(1,354
|
)
|
|
1,902
|
|
|||
Other liabilities
|
1,466
|
|
|
(8,438
|
)
|
|
1,122
|
|
|||
Investment in subsidiaries - operating activities
|
(4,517
|
)
|
|
12,991
|
|
|
(1,755
|
)
|
|||
Net cash provided by operating activities
|
$
|
45,844
|
|
|
$
|
61,175
|
|
|
$
|
25,704
|
|
Cash Flow From Investing Activities:
|
|
|
|
|
|
|
|
||||
Investment in subsidiaries
|
|
|
|
|
|
$
|
(126
|
)
|
|||
Net cash paid in acquisition
|
$
|
(12,832
|
)
|
|
|
|
|
|
|
||
Other
|
|
|
|
$
|
240
|
|
|
|
|||
Net cash provided (used) in investing activities
|
$
|
(12,832
|
)
|
|
$
|
240
|
|
|
$
|
(126
|
)
|
Cash Flow From Financing Activities:
|
|
|
|
|
|
||||||
Cash dividends
|
$
|
(10,694
|
)
|
|
$
|
(7,992
|
)
|
|
$
|
(7,442
|
)
|
Repayment of borrowings
|
|
|
|
(55,000
|
)
|
|
(4,124
|
)
|
|||
Proceeds from issuance of long-term debt
|
|
|
70,000
|
|
|
|
|||||
Preferred stock redemption under small business lending fund
|
|
|
|
(90,783
|
)
|
|
|
||||
Stock issued under employee benefit plans
|
478
|
|
|
479
|
|
|
449
|
|
|||
Stock issued under dividend reinvestment and stock purchase plan
|
523
|
|
|
325
|
|
|
202
|
|
|||
Stock options exercised
|
564
|
|
|
115
|
|
|
78
|
|
|||
Stock redeemed
|
(1,067
|
)
|
|
(491
|
)
|
|
(235
|
)
|
|||
Net cash used by financing activities
|
$
|
(10,196
|
)
|
|
$
|
(83,347
|
)
|
|
$
|
(11,072
|
)
|
Net change in cash
|
22,816
|
|
|
(21,932
|
)
|
|
14,506
|
|
|||
Cash, beginning of the year
|
13,228
|
|
|
35,160
|
|
|
20,654
|
|
|||
Cash, end of year
|
$
|
36,044
|
|
|
$
|
13,228
|
|
|
$
|
35,160
|
|
Exhibit No
:
|
Description of Exhibits
:
|
2.1
|
Agreement and Plan of Reorganization and Merger between First Merchants Corporation and Community Bancshares, Inc. dated July 21, 2014 (Incorporated by reference to registrant’s Form 8-K filed July 22, 2014).
|
2.2
|
Agreement and Plan of Reorganization and Merger between First Merchants Corporation and C Financial Corporation dated as of January 5, 2015 (Incorporated by reference to registrant's Form 8-K filed January 6, 2015)
|
3.1
|
First Merchants Corporation Articles of Incorporation, as amended (Incorporated by reference to registrant’s Form 10-Q filed on November 9, 2011)
|
3.2
|
Bylaws of First Merchants Corporation dated October 28, 2009 (Incorporated by reference to registrant’s Form 10-Q filed on November 9, 2009)
|
3.3
|
First Merchants Corporation Articles of Amendment of the Articles of Incorporation for the Series B Preferred Stock (Incorporated by reference to registrant’s Form 8-K filed on September 23, 2011)
|
4.1
|
First Merchants Corporation Amended and Restated Declaration of Trust of First Merchants Capital Trust II dated as of July 2, 2007 (Incorporated by reference to registrant's Form 8-K filed on July 3, 2007)
|
4.2
|
Indenture dated as of July 2, 2007 (Incorporated by reference to registrant's Form 8-K filed on July 3, 2007)
|
4.3
|
Guarantee Agreement dated as of July 2, 2007 (Incorporated by reference to registrant's Form 8-K filed on July 3, 2007)
|
4.4
|
Form of Capital Securities Certification of First Merchants Capital Trust II (Incorporated by reference to registrant's Form 8-K filed on July 3, 2007)
|
4.5
|
First Merchants Corporation Dividend Reinvestment and Stock Purchase Plan (Incorporated by reference to registrant’s Post-Effective Amendment No. 1 to Form S-3 filed on August 21, 2009)
|
4.6
|
Upon request, the registrant agrees to furnish supplementally to the Commission a copy of the instruments defining the rights of holders of its (a) 5.00% Fixed-to-Floating Rate Senior Notes due 2028 in the aggregate principal amount of $5 million and (b) 6.75% Fixed-to-Floating Rate Subordinated Notes due 2028 in aggregate principal amount of $65 million. (Incorporated by reference to the registrant's Form 8-K filed on November 4, 2013)
|
10.1
|
First Merchants Corporation Senior Management Incentive Compensation Program, dated February 26, 2015 (1)
|
10.2
|
First Merchants Corporation Equity Compensation Plan for Non-Employee Directors, as amended, effective January 1, 2015 (1)
|
10.3
|
First Merchants Corporation 2009 Long-Term Equity Incentive Plan, as amended, effective January 1, 2015 (1)
|
10.4
|
Voting Agreement dated July 21, 2014, by and among First Merchants Corporation and certain shareholders of Community Bancshares, Inc. (Incorporated by reference to registrant's Form 8-K filed on July 22, 2014)
|
10.5
|
First Merchants Corporation Change of Control Agreement, as amended, with Michael C. Rechin dated June 1, 2011 (Incorporated by reference to registrant’s Form 10-Q filed on August 9, 2011) (1)
|
10.6
|
First Merchants Corporation Change of Control Agreement, as amended, with Mark K. Hardwick dated June 1, 2011 (Incorporated by reference to registrant’s Form 10-Q filed on August 9, 2011) (1)
|
10.7
|
First Merchants Corporation Change of Control Agreement, as amended, with Michael J. Stewart dated June 1, 2011 (Incorporated by reference to registrant’s Form 10-Q filed on August 9, 2011) (1)
|
10.8
|
First Merchants Corporation Change of Control Agreement, as amended, with John J. Martin dated June 1, 2011 (Incorporated by reference to registrant’s Form 10-Q filed on August 9, 2011) (1)
|
10.9
|
First Merchants Corporation Change of Control Agreement, as amended, with Kimberly J. Ellington dated June 1, 2011 (Incorporated by reference to registrant’s Form 10-Q filed on August 9, 2011) (1)
|
10.10
|
First Merchants Corporation Change of Control Agreement, as amended, with Jeffery B. Lorentson dated June 1, 2011 (Incorporated by reference to registrant’s Form 10-Q filed on August 9, 2011) (1)
|
10.11
|
First Merchants Corporation Change of Control Agreement, effective February 11, 2014, with Stephan H. Fluhler (Incorporated by reference to registrant's Form 8-K filed on May 12, 2014) (1)
|
10.12
|
Resolution of the Board of Directors of First Merchants Corporation on director compensation dated December 4, 2007 (Incorporated by reference to the registrant's Form 10-K for year ended December 31, 2007) (1)
|
10.13
|
First Merchants Corporation Supplemental Executive Retirement Plan and amendments thereto (Incorporated by reference to registrant's Form 10-K for year ended December 31, 1997) (1)
|
10.14
|
First Merchants Corporation Defined Contribution Supplemental Retirement Plan dated January 1, 2006 (Incorporated by reference to registrant's Form 8-K filed on February 6, 2007) (1)
|
10.15
|
First Merchants Corporation Participation Agreement of Michael C. Rechin dated January 26, 2007 (Incorporated by reference to registrant's Form 8-K filed on February 6, 2007) (1)
|
10.16
|
First Merchants Corporation 2009 Employee Stock Purchase Plan effective July 1, 2009 (Incorporated by reference to registrant's Form 8-K filed on May 11, 2009) (1)
|
10.17
|
2011 Executive Deferred Compensation Plan, effective January 1, 2011 (Incorporated by reference to registrant’s Form 8-K filed on November 3, 2011) (1)
|
10.18
|
Voting Agreement dated January 5, 2015, by and among First Merchants Corporation and certain shareholders of C Financial Corporation (Incorporated by reference to registrant's Form 8-K filed January 6, 2015)
|
21
|
Subsidiaries of registrant (2)
|
23
|
Consent of Independent Registered Public Accounting Firm (2)
|
24
|
Limited Power of Attorney (2)
|
31.1
|
Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes - Oxley Act of 2002 (2)
|
31.2
|
Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes - Oxley Act of 2002 (2)
|
32
|
Certifications Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (2)
|
99.1
|
Financial statements and independent registered public accounting firm’s report for First Merchants Corporation 2009 Employee Stock Purchase Plan (2004) (2)
|
101.INS
|
XBRL Instance Document (3)
|
101.SCH
|
XBRL Taxonomy Extension Schema Document (3)
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document (3)
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document (3)
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document (3)
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document (3)
|
|
|
|
|
|
|
|
(1) Management contract or compensatory plan
|
|
(2) Filed herewith.
|
|
(3) Furnished herewith.
|
|
FIRST MERCHANTS CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Michael C. Rechin
|
|
|
Michael C. Rechin,
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
|
|
/s/ Michael C. Rechin
|
/s/ Mark K. Hardwick
|
Michael C. Rechin, President and
|
Mark K. Hardwick, Executive Vice
|
Chief Executive Officer
|
President and Chief Financial Officer
|
(Principal Executive Officer)
|
(Principal Financial and Accounting Officer)
|
|
|
/s/ Michael R. Becher*
|
/s/ Michael C. Rechin
|
Michael R. Becher, Director
|
Michael C. Rechin, Director
|
|
|
/s/ Roderick English*
|
/s/ Charles E. Schalliol*
|
Roderick English, Director
|
Charles E. Schalliol, Director
|
|
|
/s/ F. Howard Halderman*
|
/s/ Patrick A. Sherman*
|
F. Howard Halderman, Director
|
Patrick A. Sherman, Director
|
|
|
/s/ William L. Hoy*
|
/s/ Terry L. Walker*
|
William L. Hoy, Director
|
Terry L. Walker, Director
|
|
|
/s/ Gary J. Lehman*
|
/s/ Jean L. Wojtowicz*
|
Gary J. Lehman, Director
|
Jean L. Wojtowicz, Director
|
|
|
|
|
|
|
*
|
By Mark K. Hardwick as Attorney-in Fact pursuant to a Limited Power of Attorney executed by the directors listed above, which Power of Attorney is being filed with the Securities and Exchange Commission as an exhibit hereto.
|
|
By:
|
/s/ Mark K. Hardwick
|
|
|
Mark K. Hardwick
|
|
|
|
As Attorney-in-Fact
February 27, 2015
|
|
I.
|
Purpose
|
II.
|
Administration
|
III.
|
Covered Individuals by Officer Level/Role
|
A.
|
President and Chief Executive Officer of FMC;
|
B.
|
Executive Vice Presidents;
|
C.
|
Executive Officers, Non-Bank Presidents and Regional Presidents;
|
D.
|
Selected Senior Leadership
|
E.
|
Department Heads, Division Heads and Other Management Leadership; and
|
IV.
|
Implementation Parameters
|
A.
|
The FMC CEO and EVP earnings component payouts will be determined by FMC EPS calculated on a diluted GAAP basis.
|
B.
|
Payouts to participants on their respective region or line of business will be based on their actual results as compared to plan.
|
C.
|
When utilized, balanced scorecards will be tailored to each unit incorporating a specific weighting on various operating initiatives as set by the CEO, EVPs and SVP of HR. Balanced scorecard metrics are shown in Section V.
|
V.
|
Plan Structure
|
Payout %
|
40%
|
50%
|
60%
|
70%
|
80%
|
90%
|
100%
|
110%
|
120%
|
130%
|
140%
|
150%
|
200%
|
EPS
|
n/a
|
$1.59
|
$1.63
|
$1.67
|
$1.71
|
$1.75
|
$1.79
|
$1.83
|
$1.87
|
$1.91
|
$1.95
|
$1.99
|
$2.19
|
Consolidated Efficiency Ratio
|
n/a
|
n/a
|
61.03%
|
60.53%
|
60.03%
|
59.53%
|
59.03%
|
58.53%
|
58.03%
|
57.53%
|
57.03%
|
56.53%
|
n/a
|
Consolidated Non-Interest Income to Plan
|
n/a
|
n/a
|
n/a
|
85%
|
90%
|
95%
|
100%
|
105%
|
110%
|
115%
|
120%
|
125%
|
n/a
|
Regional Commercial LOB Net Contribution
|
n/a
|
n/a
|
n/a
|
85%
|
90%
|
95%
|
100%
|
105%
|
110%
|
115%
|
120%
|
125%
|
n/a
|
Regional Commercial Operating Revenue to Plan
|
n/a
|
n/a
|
n/a
|
85%
|
90%
|
95%
|
100%
|
105%
|
110%
|
115%
|
120%
|
125%
|
n/a
|
Regional Operating Revenue to Plan
|
n/a
|
n/a
|
n/a
|
85%
|
90%
|
95%
|
100%
|
105%
|
110%
|
115%
|
120%
|
125%
|
n/a
|
Insurance Income Growth
|
10%
|
12.50%
|
15%
|
17.5%
|
20%
|
22.5%
|
25%
|
27.5%
|
30%
|
32.5%
|
35%
|
37.5%
|
n/a
|
Insurance Revenue Growth
|
10%
|
12.50%
|
15%
|
17.5%
|
20%
|
22.5%
|
25%
|
27.5%
|
30%
|
32.5%
|
35%
|
37.5%
|
n/a
|
Trust Income Growth
|
n/a
|
n/a
|
2%
|
4%
|
6%
|
8%
|
10%
|
12%
|
14%
|
16%
|
18%
|
20%
|
n/a
|
Trust Revenue Growth
|
n/a
|
n/a
|
2%
|
4%
|
6%
|
8%
|
10%
|
12%
|
14%
|
16%
|
18%
|
20%
|
n/a
|
Retail Net Contribution
|
n/a
|
n/a
|
n/a
|
85%
|
90%
|
95%
|
100%
|
105%
|
110%
|
115%
|
120%
|
125%
|
n/a
|
Business Banking Net Contribution
|
n/a
|
n/a
|
n/a
|
85%
|
90%
|
95%
|
100%
|
105%
|
110%
|
115%
|
120%
|
125%
|
n/a
|
Mortgage Banking Net Contribution
|
n/a
|
n/a
|
n/a
|
85%
|
90%
|
95%
|
100%
|
105%
|
110%
|
115%
|
120%
|
125%
|
n/a
|
Capital Markets Operating Revenue to Plan
|
n/a
|
n/a
|
n/a
|
85%
|
90%
|
95%
|
100%
|
105%
|
110%
|
115%
|
120%
|
125%
|
n/a
|
Capital Markets Net Contribution
|
n/a
|
n/a
|
n/a
|
85%
|
90%
|
95%
|
100%
|
105%
|
110%
|
115%
|
120%
|
125%
|
n/a
|
(a)
|
Lapse of Restrictions.
The restrictions set forth in the first paragraph of Section 3.04 shall lapse on the earliest of the following dates: (i) the third anniversary of the date as of which the Restricted Shares were issued if, as of the date the restrictions are to lapse, the Non-Employee Director has continued to serve in that capacity from the date as of which the Restricted Shares were issued to the date of lapse; (ii) the date of the Non-Employee Director’s retirement as a member of the Board after he or she has attained age fifty-five (55); (iii) the date of the Non-Employee Director’s death; (iv) the date the Non-Employee Director is determined to be totally and permanently disabled, as defined in Section 22(e)(3) of the Internal Revenue Code of 1986, as amended (the “Code”), or (v) the date of a “Change of Control,” as defined in the 1999 Equity Incentive Plan.
|
(b)
|
Forfeiture of Restricted Shares.
In the event a Non-Employee Director’s service as a member of the Board terminates prior to the date the restrictions on all or part of the Restricted Shares issued pursuant to the Plan have lapsed in accordance with Subsection 3.04(a), all shares still subject to the restrictions shall be returned to or canceled by the Company and shall be deemed to have been forfeited by the Non-Employee Director.
|
(i)
|
any “person,” as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) other than the Company, is or becomes the “beneficial owner” (as determined under Exchange Act Regulations §240.13d-3), directly or indirectly, of securities of the Company representing twenty-five percent (25%) or more of the combined voting power of the Company’s then outstanding securities;
|
(ii)
|
persons constituting a majority of the Board of Directors of the Company were not directors of the Company for at least the twenty-four (24) months preceding months;
|
(iii)
|
the shareholders of the Company approve a merger or consolidation of the Company with any other corporation, other than (1) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty percent (50%) of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, or (2) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no person acquires fifty percent (50%) or more of the combined voting power of the Company’s then outstanding securities; or
|
(iv)
|
the shareholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets.
|
(i)
|
Price.
The price of an Incentive Stock Option shall be an amount per share not less than the Fair Market Value per share of the Common Shares on the date of granting of the option. In the case of Incentive Stock Options granted to an Employee of the Company who is a 10% shareholder, the option price shall be an amount per share not less than one hundred ten percent (110%) of the Fair Market Value per share of the Common Shares on the date of the granting of the Incentive Stock Option.
|
(ii)
|
Exercise Period.
Unless terminated earlier pursuant to other terms and provisions of the Award Agreement, the term of each Incentive Stock Option shall expire within the period prescribed in the Agreement relating thereto, which shall not be more than five (5) years from the date the Incentive Stock Option is granted if the Participant is a ten percent (10%) shareholder, and not more than ten (10) years from the date the Incentive Stock Option is granted if the Participant is not a ten percent (10%) shareholder.
|
(iii)
|
Limitation on Grants.
No Incentive Stock Option shall be granted under this Plan after May 5, 2019.
|
(iv)
|
Limitation on Transferability
. No Incentive Stock Option shall be assignable or transferable except by will or under the laws of descent and distribution. Notwithstanding the foregoing, a Participant may, by delivering written notice to the Company in a form satisfactory to the Company, designate a person who, in the event of the Participant’s death, shall thereafter be entitled to exercise the Option. During the lifetime of a Participant, the Incentive Stock Option shall be exercisable only by the Participant and may not be transferred or assigned pursuant to a qualified domestic relations order.
|
(v)
|
Maximum Exercise Rule.
The aggregate Fair Market Value (determined at the time the option is granted) of the shares with respect to which Incentive Stock Options are exercisable for the first time by an Employee during any calendar year under all such plans of the Company and any parent or Subsidiary of the Company shall not exceed One Hundred Thousand Dollars ($100,000). To the extent that such aggregate Fair Market Value exceeds One Hundred Thousand Dollars ($100,000), the Stock Option(s) or portions thereof that exceed such limit (according to the order in which they were granted) shall be treated as Non-Qualified Stock Option(s), notwithstanding any contrary provision of the applicable Award Agreement.
|
(i)
|
Directly or indirectly renders services to or for an organization, or engages in a business that is, in the judgment of the Committee, in competition with the Company.
|
(ii)
|
Discloses to anyone outside of the Company, or uses for any purpose other than the Company’s business, any confidential or proprietary information or material relating to the Company, whether acquired by the Participant during or after employment with the Company.
|
Name
|
Jurisdiction of Incorporation
|
First Merchants Bank, National Association
|
U.S.
|
First Merchants Insurance Services, Inc.
|
Indiana
|
FMB Portfolio Management, Inc.
|
Delaware
|
FMB Properties, Inc
|
Maryland
|
FMB Risk Management, Inc.
|
Nevada
|
First Merchants Capital Trust II
|
Delaware
|
FMB Tax Credit Holdings I, LLC
|
Indiana
|
GS Asset Management, LLC
|
Indiana
|
WHCC, LLC
|
Indiana
|
/s/ Michael C. Rechin
|
|
/s/ Mark K. Hardwick
|
|
Michael C. Rechin, President and
|
|
Mark K. Hardwick, Executive Vice
|
|
Chief Executive Officer
|
|
President and Chief Financial Officer
|
|
(Principal Executive Officer)
|
|
(Principal Financial and Accounting Officer)
|
|
|
|
|
|
/s/ Michael R. Becher*
|
|
/s/ Michael C. Rechin
|
|
Michael R. Becher, Director
|
|
Michael C. Rechin, Director
|
|
|
|
|
|
/s/ Roderick English*
|
|
/s/ Charles E. Schalliol*
|
|
Roderick English, Director
|
|
Charles E. Schalliol, Director
|
|
|
|
|
|
/s/ F. Howard Halderman*
|
|
/s/ Patrick A. Sherman*
|
|
F. Howard Halderman, Director
|
|
Patrick A. Sherman, Director
|
|
|
|
|
|
/s/ William L. Hoy*
|
|
/s/ Terry L. Walker*
|
|
William L. Hoy, Director
|
|
Terry L. Walker, Director
|
|
|
|
|
|
/s/ Gary J. Lehman*
|
|
/s/ Jean L. Wojtowicz*
|
|
Gary J. Lehman, Director
|
|
Jean L. Wojtowicz, Director
|
|
|
|
|
|
|
|
|
|
|
|
|