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Page No.
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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Item 1.
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Item 1A.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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|
Ameriana
|
Ameriana Bancorp, Inc., which was acquired by the Corporation on December 31, 2015.
|
Arlington Bank
|
The Arlington Bank, which was acquired by the Corporation on May 19, 2017.
|
ASC
|
Accounting Standards Codification
|
Bank
|
First Merchants Bank, a wholly-owned subsidiary of the Corporation
|
CET1
|
Common Equity Tier 1
|
C Financial
|
C Financial Corporation, which was acquired by the Corporation on April 17, 2015.
|
CFS
|
CFS Bancorp, Inc., which was acquired by the Corporation on November 12, 2013.
|
CMT
|
Constant Maturity Treasury
|
Community
|
Community Bancshares, Inc., which was acquired by the Corporation on November 7, 2014.
|
Corporation
|
First Merchants Corporation
|
ESPP
|
Employee Stock Purchase Plan
|
FDIC
|
Federal Deposit Insurance Corporation
|
FHLB
|
Federal Home Loan Bank
|
FTE
|
Fully taxable equivalent
|
GAAP
|
Generally Accepted Accounting Principles
|
IAB
|
Independent Alliance Banks, Inc., which was acquired by the Corporation on July 14, 2017.
|
Indiana DFI
|
Indiana Department of Financial Institutions
|
RSA
|
Restricted Stock Awards
|
SCB
|
SCB Bank, of which the Bank assumed substantially all the deposits and certain other liabilities and acquired certain other assets from the FDIC as receiver on February 10, 2012.
|
TEFRA
|
Tax Equity and Fiscal Responsibility Act. The TEFRA disallowance reduces the amount of interest expense an entity may deduct for the purpose of carrying tax-free investment securities.
|
|
September 30,
2017 |
|
December 31,
2016 |
||||
|
(Unaudited)
|
|
|||||
ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
146,607
|
|
|
$
|
127,927
|
|
Interest-bearing time deposits
|
72,950
|
|
|
24,459
|
|
||
Investment securities available for sale
|
890,721
|
|
|
696,862
|
|
||
Investment securities held to maturity (fair value of $587,270 and $611,933)
|
578,166
|
|
|
607,643
|
|
||
Loans held for sale
|
4,514
|
|
|
2,929
|
|
||
Loans, net of allowance for loan losses of $73,354 and $66,037
|
6,410,094
|
|
|
5,073,608
|
|
||
Premises and equipment
|
102,485
|
|
|
94,432
|
|
||
Federal Home Loan Bank stock
|
23,825
|
|
|
17,964
|
|
||
Interest receivable
|
32,366
|
|
|
26,194
|
|
||
Goodwill
|
445,355
|
|
|
244,000
|
|
||
Other intangibles
|
33,203
|
|
|
14,866
|
|
||
Cash surrender value of life insurance
|
222,437
|
|
|
201,671
|
|
||
Other real estate owned
|
11,912
|
|
|
8,966
|
|
||
Tax asset, deferred and receivable
|
36,024
|
|
|
39,384
|
|
||
Other assets
|
38,744
|
|
|
30,706
|
|
||
TOTAL ASSETS
|
$
|
9,049,403
|
|
|
$
|
7,211,611
|
|
LIABILITIES
|
|
|
|
||||
Deposits:
|
|
|
|
||||
Noninterest-bearing
|
$
|
1,662,814
|
|
|
$
|
1,348,267
|
|
Interest-bearing
|
5,248,205
|
|
|
4,208,231
|
|
||
Total Deposits
|
6,911,019
|
|
|
5,556,498
|
|
||
Borrowings:
|
|
|
|
||||
Federal funds purchased
|
100,000
|
|
|
120,349
|
|
||
Securities sold under repurchase agreements
|
142,107
|
|
|
146,480
|
|
||
Federal Home Loan Bank advances
|
406,820
|
|
|
298,923
|
|
||
Subordinated debentures and term loans
|
139,686
|
|
|
128,445
|
|
||
Total Borrowings
|
788,613
|
|
|
694,197
|
|
||
Interest payable
|
4,956
|
|
|
3,110
|
|
||
Other liabilities
|
61,695
|
|
|
56,149
|
|
||
Total Liabilities
|
7,766,283
|
|
|
6,309,954
|
|
||
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 - 100,000,000 and 50,000,000 shares
|
|
|
|
||||
Issued and outstanding - 49,140,594 and 40,912,697 shares
|
6,143
|
|
|
5,114
|
|
||
Additional paid-in capital
|
833,451
|
|
|
509,018
|
|
||
Retained earnings
|
449,759
|
|
|
400,981
|
|
||
Accumulated other comprehensive loss
|
(6,358
|
)
|
|
(13,581
|
)
|
||
Total Stockholders' Equity
|
1,283,120
|
|
|
901,657
|
|
||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
9,049,403
|
|
|
$
|
7,211,611
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
INTEREST INCOME
|
|
|
|
|
|
|
|
||||||||
Loans receivable:
|
|
|
|
|
|
|
|
||||||||
Taxable
|
$
|
71,491
|
|
|
$
|
53,819
|
|
|
$
|
187,234
|
|
|
$
|
156,407
|
|
Tax exempt
|
2,851
|
|
|
1,649
|
|
|
7,676
|
|
|
4,429
|
|
||||
Investment securities:
|
|
|
|
|
|
|
|
||||||||
Taxable
|
4,524
|
|
|
3,992
|
|
|
13,012
|
|
|
12,522
|
|
||||
Tax exempt
|
5,455
|
|
|
4,668
|
|
|
15,549
|
|
|
13,760
|
|
||||
Deposits with financial institutions
|
284
|
|
|
55
|
|
|
442
|
|
|
283
|
|
||||
Federal Reserve and Federal Home Loan Bank stock
|
242
|
|
|
193
|
|
|
635
|
|
|
906
|
|
||||
Total Interest Income
|
84,847
|
|
|
64,376
|
|
|
224,548
|
|
|
188,307
|
|
||||
INTEREST EXPENSE
|
|
|
|
|
|
|
|
||||||||
Deposits
|
6,710
|
|
|
3,926
|
|
|
15,971
|
|
|
12,028
|
|
||||
Federal funds purchased
|
175
|
|
|
27
|
|
|
506
|
|
|
62
|
|
||||
Securities sold under repurchase agreements
|
133
|
|
|
91
|
|
|
331
|
|
|
283
|
|
||||
Federal Home Loan Bank advances
|
1,464
|
|
|
853
|
|
|
3,619
|
|
|
2,467
|
|
||||
Subordinated debentures and term loans
|
1,945
|
|
|
1,797
|
|
|
5,602
|
|
|
5,368
|
|
||||
Total Interest Expense
|
10,427
|
|
|
6,694
|
|
|
26,029
|
|
|
20,208
|
|
||||
NET INTEREST INCOME
|
74,420
|
|
|
57,682
|
|
|
198,519
|
|
|
168,099
|
|
||||
Provision for loan losses
|
2,083
|
|
|
1,900
|
|
|
7,343
|
|
|
3,240
|
|
||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
|
72,337
|
|
|
55,782
|
|
|
191,176
|
|
|
164,859
|
|
||||
OTHER INCOME
|
|
|
|
|
|
|
|
||||||||
Service charges on deposit accounts
|
5,044
|
|
|
4,667
|
|
|
13,656
|
|
|
13,228
|
|
||||
Fiduciary activities
|
2,995
|
|
|
2,448
|
|
|
8,244
|
|
|
7,318
|
|
||||
Other customer fees
|
5,341
|
|
|
4,777
|
|
|
15,610
|
|
|
14,531
|
|
||||
Increase in cash surrender value of life insurance
|
1,058
|
|
|
906
|
|
|
2,773
|
|
|
2,784
|
|
||||
Gains on life insurance benefits
|
517
|
|
|
(292
|
)
|
|
2,671
|
|
|
603
|
|
||||
Net gains and fees on sales of loans
|
2,317
|
|
|
1,989
|
|
|
5,209
|
|
|
5,166
|
|
||||
Net realized gains on sales of available for sale securities
|
332
|
|
|
839
|
|
|
1,497
|
|
|
2,542
|
|
||||
Other income
|
1,064
|
|
|
1,527
|
|
|
2,288
|
|
|
2,911
|
|
||||
Total Other Income
|
18,668
|
|
|
16,861
|
|
|
51,948
|
|
|
49,083
|
|
||||
OTHER EXPENSES
|
|
|
|
|
|
|
|
||||||||
Salaries and employee benefits
|
33,244
|
|
|
26,651
|
|
|
86,052
|
|
|
79,558
|
|
||||
Net occupancy
|
4,371
|
|
|
4,348
|
|
|
12,552
|
|
|
12,429
|
|
||||
Equipment
|
3,478
|
|
|
2,947
|
|
|
9,192
|
|
|
9,428
|
|
||||
Marketing
|
1,021
|
|
|
630
|
|
|
2,378
|
|
|
2,218
|
|
||||
Outside data processing fees
|
3,162
|
|
|
2,382
|
|
|
8,864
|
|
|
6,476
|
|
||||
Printing and office supplies
|
366
|
|
|
314
|
|
|
905
|
|
|
1,047
|
|
||||
Intangible asset amortization
|
1,698
|
|
|
978
|
|
|
3,592
|
|
|
2,933
|
|
||||
FDIC assessments
|
704
|
|
|
534
|
|
|
1,853
|
|
|
2,486
|
|
||||
Other real estate owned and foreclosure expenses
|
330
|
|
|
637
|
|
|
1,592
|
|
|
2,303
|
|
||||
Professional and other outside services
|
5,843
|
|
|
1,242
|
|
|
10,843
|
|
|
4,882
|
|
||||
Other expenses
|
4,491
|
|
|
3,452
|
|
|
11,300
|
|
|
11,665
|
|
||||
Total Other Expenses
|
58,708
|
|
|
44,115
|
|
|
149,123
|
|
|
135,425
|
|
||||
INCOME BEFORE INCOME TAX
|
32,297
|
|
|
28,528
|
|
|
94,001
|
|
|
78,517
|
|
||||
Income tax expense
|
7,939
|
|
|
7,469
|
|
|
22,314
|
|
|
19,759
|
|
||||
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS
|
$
|
24,358
|
|
|
$
|
21,059
|
|
|
$
|
71,687
|
|
|
$
|
58,758
|
|
Per Share Data:
|
|
|
|
|
|
|
|
||||||||
Basic Net Income Available to Common Stockholders
|
$
|
0.50
|
|
|
$
|
0.51
|
|
|
$
|
1.64
|
|
|
$
|
1.44
|
|
Diluted Net Income Available to Common Stockholders
|
$
|
0.50
|
|
|
$
|
0.51
|
|
|
$
|
1.63
|
|
|
$
|
1.43
|
|
Cash Dividends Paid
|
$
|
0.18
|
|
|
$
|
0.14
|
|
|
$
|
0.51
|
|
|
$
|
0.39
|
|
Average Diluted Shares Outstanding (in thousands)
|
48,644
|
|
|
41,026
|
|
|
44,063
|
|
|
40,970
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net income
|
$
|
24,358
|
|
|
$
|
21,059
|
|
|
$
|
71,687
|
|
|
$
|
58,758
|
|
Other comprehensive income net of tax:
|
|
|
|
|
|
|
|
||||||||
Unrealized holding gain (loss) on securities available for sale arising during the period, net of tax of $4,101, $1,627, $4,374 and $4,234
|
(7,617
|
)
|
|
(3,022
|
)
|
|
8,124
|
|
|
7,863
|
|
||||
Unrealized gain (loss) on cash flow hedges arising during the period, net of tax of $3, $134, $134 and $835
|
(7
|
)
|
|
250
|
|
|
(246
|
)
|
|
(1,548
|
)
|
||||
Reclassification adjustment for net gains included in net income, net of tax of $32, $183, $258 and $554
|
(60
|
)
|
|
(339
|
)
|
|
(480
|
)
|
|
(1,029
|
)
|
||||
Defined benefit pension plan amortization of prior service cost, net of tax of $31 and $94
|
(58
|
)
|
|
|
|
|
(175
|
)
|
|
|
|
||||
|
(7,742
|
)
|
|
(3,111
|
)
|
|
7,223
|
|
|
5,286
|
|
||||
Comprehensive income
|
$
|
16,616
|
|
|
$
|
17,948
|
|
|
$
|
78,910
|
|
|
$
|
64,044
|
|
|
Preferred
|
|
Common Stock
|
|
Additional
|
|
|
|
Accumulated
Other |
|
|
||||||||||||||||||
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Paid in
Capital |
|
Retained
Earnings |
|
Comprehensive
Income (Loss) |
|
Total
|
||||||||||||||
Balances, December 31, 2016
|
125
|
|
|
$
|
125
|
|
|
40,912,697
|
|
|
$
|
5,114
|
|
|
$
|
509,018
|
|
|
$
|
400,981
|
|
|
$
|
(13,581
|
)
|
|
$
|
901,657
|
|
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net income
|
|
|
|
|
|
|
|
|
|
|
71,687
|
|
|
|
|
71,687
|
|
||||||||||||
Other comprehensive income, net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
7,223
|
|
|
7,223
|
|
||||||||||||
Cash dividends on common stock
($.51 per share)
|
|
|
|
|
|
|
|
|
|
|
(22,909
|
)
|
|
|
|
(22,909
|
)
|
||||||||||||
Issuance of common stock related to acquisition
|
|
|
|
|
8,044,446
|
|
|
1,006
|
|
|
320,425
|
|
|
|
|
|
|
321,431
|
|
||||||||||
Share-based compensation
|
|
|
|
|
84,795
|
|
|
11
|
|
|
1,873
|
|
|
|
|
|
|
1,884
|
|
||||||||||
Stock issued under employee benefit plans
|
|
|
|
|
10,781
|
|
|
1
|
|
|
366
|
|
|
|
|
|
|
367
|
|
||||||||||
Stock issued under dividend reinvestment and
stock purchase plan |
|
|
|
|
17,557
|
|
|
2
|
|
|
712
|
|
|
|
|
|
|
714
|
|
||||||||||
Stock options exercised
|
|
|
|
|
101,759
|
|
|
13
|
|
|
2,310
|
|
|
|
|
|
|
2,323
|
|
||||||||||
Stock redeemed
|
|
|
|
|
(31,441
|
)
|
|
(4
|
)
|
|
(1,253
|
)
|
|
|
|
|
|
(1,257
|
)
|
||||||||||
Balances,
September 30, 2017
|
125
|
|
|
$
|
125
|
|
|
49,140,594
|
|
|
$
|
6,143
|
|
|
$
|
833,451
|
|
|
$
|
449,759
|
|
|
$
|
(6,358
|
)
|
|
$
|
1,283,120
|
|
|
Nine Months Ended
|
||||||
|
September 30, 2017
|
|
September 30, 2016
|
||||
Cash Flow From Operating Activities:
|
|
|
|
||||
Net income
|
$
|
71,687
|
|
|
$
|
58,758
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Provision for loan losses
|
7,343
|
|
|
3,240
|
|
||
Depreciation and amortization
|
5,696
|
|
|
5,363
|
|
||
Change in deferred taxes
|
3,542
|
|
|
6,889
|
|
||
Share-based compensation
|
1,884
|
|
|
1,883
|
|
||
Loans originated for sale
|
(246,979
|
)
|
|
(280,769
|
)
|
||
Proceeds from sales of loans held for sale
|
257,695
|
|
|
293,519
|
|
||
Gains on sales of loans held for sale
|
(4,081
|
)
|
|
(4,338
|
)
|
||
Gains on sales of securities available for sale
|
(1,497
|
)
|
|
(2,542
|
)
|
||
Increase in cash surrender of life insurance
|
(2,773
|
)
|
|
(2,784
|
)
|
||
Gains on life insurance benefits
|
(2,671
|
)
|
|
(603
|
)
|
||
Change in interest receivable
|
(2,074
|
)
|
|
763
|
|
||
Change in interest payable
|
597
|
|
|
641
|
|
||
Other adjustments
|
(9,006
|
)
|
|
775
|
|
||
Net cash provided by operating activities
|
79,363
|
|
|
80,795
|
|
||
Cash Flows from Investing Activities:
|
|
|
|
||||
Net change in interest-bearing deposits
|
200,013
|
|
|
(1,488
|
)
|
||
Purchases of:
|
|
|
|
||||
Securities available for sale
|
(307,220
|
)
|
|
(161,962
|
)
|
||
Securities held to maturity
|
(30,220
|
)
|
|
(94,309
|
)
|
||
Proceeds from sales of securities available for sale
|
54,513
|
|
|
104,821
|
|
||
Proceeds from maturities of:
|
|
|
|
||||
Securities available for sale
|
52,176
|
|
|
52,019
|
|
||
Securities held to maturity
|
55,276
|
|
|
86,281
|
|
||
Change in Federal Reserve and Federal Home Loan Bank stock
|
40
|
|
|
19,589
|
|
||
Net change in loans
|
(401,977
|
)
|
|
(286,125
|
)
|
||
Net cash and cash equivalents received in acquisition
|
54,536
|
|
|
|
|||
Proceeds from the sale of other real estate owned
|
5,046
|
|
|
8,105
|
|
||
Proceeds from life insurance benefits
|
11,642
|
|
|
2,070
|
|
||
Other adjustments
|
(1,656
|
)
|
|
(3,800
|
)
|
||
Net cash used in investing activities
|
(307,831
|
)
|
|
(274,799
|
)
|
||
Cash Flows from Financing Activities:
|
|
|
|
||||
Net change in :
|
|
|
|
||||
Demand and savings deposits
|
132,145
|
|
|
195,395
|
|
||
Certificates of deposit and other time deposits
|
107,322
|
|
|
(41,973
|
)
|
||
Borrowings
|
894,674
|
|
|
647,935
|
|
||
Repayment of borrowings
|
(866,231
|
)
|
|
(594,350
|
)
|
||
Cash dividends on common stock
|
(22,909
|
)
|
|
(16,023
|
)
|
||
Stock issued under employee benefit plans
|
367
|
|
|
338
|
|
||
Stock issued under dividend reinvestment and stock purchase plans
|
714
|
|
|
605
|
|
||
Stock options exercised
|
2,323
|
|
|
309
|
|
||
Stock redeemed
|
(1,257
|
)
|
|
(800
|
)
|
||
Net cash provided by financing activities
|
247,148
|
|
|
191,436
|
|
||
Net Change in Cash and Cash Equivalents
|
18,680
|
|
|
(2,568
|
)
|
||
Cash and Cash Equivalents, January 1
|
127,927
|
|
|
102,170
|
|
||
Cash and Cash Equivalents,
September 30
|
$
|
146,607
|
|
|
$
|
99,602
|
|
Additional cash flow information:
|
|
|
|
||||
Interest paid
|
$
|
24,183
|
|
|
$
|
19,567
|
|
Income tax paid
|
18,000
|
|
|
4,499
|
|
||
Loans transferred to other real estate owned
|
8,210
|
|
|
665
|
|
||
Fixed assets transferred to other real estate owned
|
|
|
|
360
|
|
||
Non-cash investing activities using trade date accounting
|
3,798
|
|
|
1,341
|
|
||
|
|
|
|
||||
In conjunction with the acquisitions, liabilities were assumed as follows:
|
|
|
|
||||
Fair value of assets acquired
|
$
|
1,531,397
|
|
|
|
|
|
Cash paid in acquisitions
|
(12
|
)
|
|
|
|
||
Less: Common stock issued
|
321,431
|
|
|
|
|
||
Liabilities assumed
|
$
|
1,209,954
|
|
|
$
|
—
|
|
|
|
Fair Value
|
||
Cash and cash equivalents
|
|
$
|
6,016
|
|
Interest-bearing time deposits
|
|
248,212
|
|
|
Investment securities
|
|
4,078
|
|
|
Loans held for sale
|
|
594
|
|
|
Loans
|
|
725,382
|
|
|
Premises and equipment
|
|
10,107
|
|
|
Federal Home Loan Bank stock
|
|
4,810
|
|
|
Interest receivable
|
|
3,445
|
|
|
Cash surrender value of life insurance
|
|
26,964
|
|
|
Other assets
|
|
11,780
|
|
|
Deposits
|
|
(862,271
|
)
|
|
Securities sold under repurchase agreements
|
|
(17,915
|
)
|
|
Federal Home Loan Bank Advances
|
|
(47,575
|
)
|
|
Subordinated debentures
|
|
(10,583
|
)
|
|
Interest payable
|
|
(1,005
|
)
|
|
Other liabilities
|
|
(14,472
|
)
|
|
Net tangible assets acquired
|
|
87,567
|
|
|
Other Intangible assets
|
|
17,403
|
|
|
Goodwill
|
|
153,636
|
|
|
Purchase price
|
|
$
|
258,606
|
|
|
Fair Value of Acquired Loans at Acquisition Date
|
|
Gross Contractual Amounts Receivable at Acquisition Date
|
|
Best Estimate at Acquisition Date of Contractual Cash Flows Not Expected to be Collected
|
||||||
Acquired receivables subject to ASC 310-30
|
$
|
4,838
|
|
|
$
|
14,131
|
|
|
$
|
8,352
|
|
Acquired receivables not subject to ASC 310-30
|
$
|
720,544
|
|
|
$
|
864,613
|
|
|
$
|
9,786
|
|
|
|
Fair Value
|
||
Cash and cash equivalents
|
|
$
|
48,532
|
|
Interest-bearing time deposits
|
|
292
|
|
|
Loans held for sale
|
|
7,626
|
|
|
Loans
|
|
224,680
|
|
|
Premises and equipment
|
|
1,986
|
|
|
Federal Home Loan Bank stock
|
|
1,091
|
|
|
Interest receivable
|
|
653
|
|
|
Other assets
|
|
1,620
|
|
|
Deposits
|
|
(252,783
|
)
|
|
Interest payable
|
|
(244
|
)
|
|
Other liabilities
|
|
(3,106
|
)
|
|
Net tangible assets acquired
|
|
30,347
|
|
|
Core deposit intangible
|
|
4,526
|
|
|
Goodwill
|
|
47,719
|
|
|
Purchase price
|
|
$
|
82,592
|
|
|
Fair Value of Acquired Loans at Acquisition Date
|
|
Gross Contractual Amounts Receivable at Acquisition Date
|
|
Best Estimate at Acquisition Date of Contractual Cash Flows Not Expected to be Collected
|
||||||
Acquired receivables subject to ASC 310-30
|
$
|
2,625
|
|
|
$
|
6,183
|
|
|
$
|
2,891
|
|
Acquired receivables not subject to ASC 310-30
|
$
|
222,055
|
|
|
$
|
308,857
|
|
|
$
|
2,741
|
|
|
|
Three Months Ended
September 30, 2017 |
|
Nine Months Ended
September 30, 2017 |
||||
Total revenue (net interest income plus other income)
|
|
$
|
96,178
|
|
|
$
|
281,392
|
|
Net income
|
|
$
|
19,603
|
|
|
$
|
70,651
|
|
Net income available to common shareholders
|
|
|
|
|
||||
Earnings per share:
|
|
|
|
|
||||
Basic
|
|
$
|
0.40
|
|
|
$
|
1.44
|
|
Diluted
|
|
$
|
0.39
|
|
|
$
|
1.43
|
|
|
|
2016
|
||
Total revenue (net interest income plus other income)
|
|
$
|
353,732
|
|
Net income
|
|
$
|
95,288
|
|
Earnings per share:
|
|
|
||
Basic
|
|
$
|
1.95
|
|
Diluted
|
|
$
|
1.94
|
|
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
||||||||
Available for sale at September 30, 2017
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
$
|
250
|
|
|
|
|
|
|
$
|
250
|
|
||||
State and municipal
|
452,666
|
|
|
$
|
13,748
|
|
|
$
|
2,006
|
|
|
464,408
|
|
||
U.S. Government-sponsored mortgage-backed securities
|
423,390
|
|
|
2,242
|
|
|
1,957
|
|
|
423,675
|
|
||||
Corporate obligations
|
31
|
|
|
|
|
|
|
|
31
|
|
|||||
Equity securities
|
2,357
|
|
|
|
|
|
|
2,357
|
|
||||||
Total available for sale
|
878,694
|
|
|
15,990
|
|
|
3,963
|
|
|
890,721
|
|
||||
Held to maturity at September 30, 2017
|
|
|
|
|
|
|
|
||||||||
U.S. Government-sponsored agency securities
|
22,618
|
|
|
|
|
|
311
|
|
|
22,307
|
|
||||
State and municipal
|
237,257
|
|
|
5,935
|
|
|
575
|
|
|
242,617
|
|
||||
U.S. Government-sponsored mortgage-backed securities
|
317,291
|
|
|
4,867
|
|
|
812
|
|
|
321,346
|
|
||||
Foreign Investments
|
1,000
|
|
|
|
|
|
|
1,000
|
|
||||||
Total held to maturity
|
578,166
|
|
|
10,802
|
|
|
1,698
|
|
|
587,270
|
|
||||
Total Investment Securities
|
$
|
1,456,860
|
|
|
$
|
26,792
|
|
|
$
|
5,661
|
|
|
$
|
1,477,991
|
|
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
||||||||
Available for sale at December 31, 2016
|
|
|
|
|
|
|
|
||||||||
U.S. Government-sponsored agency securities
|
$
|
100
|
|
|
|
|
|
|
|
$
|
100
|
|
|||
State and municipal
|
360,779
|
|
|
$
|
8,443
|
|
|
$
|
5,564
|
|
|
363,658
|
|
||
U.S. Government-sponsored mortgage-backed securities
|
313,459
|
|
|
1,904
|
|
|
3,071
|
|
|
312,292
|
|
||||
Corporate obligations
|
31
|
|
|
|
|
|
|
|
31
|
|
|||||
Equity securities
|
21,820
|
|
|
|
|
1,039
|
|
|
20,781
|
|
|||||
Total available for sale
|
696,189
|
|
|
10,347
|
|
|
9,674
|
|
|
696,862
|
|
||||
Held to maturity at December 31, 2016
|
|
|
|
|
|
|
|
||||||||
U.S. Government-sponsored agency securities
|
22,619
|
|
|
|
|
479
|
|
|
22,140
|
|
|||||
State and municipal
|
224,811
|
|
|
3,136
|
|
|
1,796
|
|
|
226,151
|
|
||||
U.S. Government-sponsored mortgage-backed securities
|
360,213
|
|
|
4,956
|
|
|
1,527
|
|
|
363,642
|
|
||||
Total held to maturity
|
607,643
|
|
|
8,092
|
|
|
3,802
|
|
|
611,933
|
|
||||
Total Investment Securities
|
$
|
1,303,832
|
|
|
$
|
18,439
|
|
|
$
|
13,476
|
|
|
$
|
1,308,795
|
|
|
Available for Sale
|
|
Held to Maturity
|
||||||||||||
|
Amortized Cost
|
|
Fair Value
|
|
Amortized Cost
|
|
Fair Value
|
||||||||
Maturity Distribution at September 30, 2017:
|
|
|
|
|
|
|
|
||||||||
Due in one year or less
|
$
|
674
|
|
|
$
|
675
|
|
|
$
|
7,329
|
|
|
$
|
7,417
|
|
Due after one through five years
|
8,970
|
|
|
9,398
|
|
|
79,466
|
|
|
80,423
|
|
||||
Due after five through ten years
|
84,977
|
|
|
88,832
|
|
|
53,423
|
|
|
54,573
|
|
||||
Due after ten years
|
358,326
|
|
|
365,784
|
|
|
120,657
|
|
|
123,511
|
|
||||
|
$
|
452,947
|
|
|
$
|
464,689
|
|
|
$
|
260,875
|
|
|
$
|
265,924
|
|
U.S. Government-sponsored mortgage-backed securities
|
423,390
|
|
|
423,675
|
|
|
317,291
|
|
|
321,346
|
|
||||
Equity securities
|
2,357
|
|
|
2,357
|
|
|
|
|
|
||||||
Total Investment Securities
|
$
|
878,694
|
|
|
$
|
890,721
|
|
|
$
|
578,166
|
|
|
$
|
587,270
|
|
|
Available for Sale
|
|
Held to Maturity
|
||||||||||||
|
Amortized Cost
|
|
Fair Value
|
|
Amortized Cost
|
|
Fair Value
|
||||||||
Maturity Distribution at December 31, 2016
|
|
|
|
|
|
|
|
||||||||
Due in one year or less
|
$
|
2,703
|
|
|
$
|
2,717
|
|
|
$
|
2,046
|
|
|
$
|
2,047
|
|
Due after one through five years
|
16,359
|
|
|
17,068
|
|
|
61,921
|
|
|
63,193
|
|
||||
Due after five through ten years
|
60,614
|
|
|
62,241
|
|
|
61,606
|
|
|
61,145
|
|
||||
Due after ten years
|
281,234
|
|
|
281,763
|
|
|
121,857
|
|
|
121,906
|
|
||||
|
$
|
360,910
|
|
|
$
|
363,789
|
|
|
$
|
247,430
|
|
|
$
|
248,291
|
|
U.S. Government-sponsored mortgage-backed securities
|
313,459
|
|
|
312,292
|
|
|
360,213
|
|
|
363,642
|
|
||||
Equity securities
|
21,820
|
|
|
20,781
|
|
|
|
|
|
||||||
Total Investment Securities
|
$
|
696,189
|
|
|
$
|
696,862
|
|
|
$
|
607,643
|
|
|
$
|
611,933
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Sales and Redemptions of Available for Sale Securities:
|
|
|
|
|
|
|
|
||||||||
Gross gains
|
$
|
382
|
|
|
$
|
839
|
|
|
$
|
1,547
|
|
|
$
|
2,542
|
|
Gross losses
|
50
|
|
|
|
|
50
|
|
|
|
|
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 September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
State and municipal
|
$
|
76,469
|
|
|
$
|
959
|
|
|
$
|
21,693
|
|
|
$
|
1,047
|
|
|
$
|
98,162
|
|
|
$
|
2,006
|
|
U.S. Government-sponsored mortgage-backed securities
|
153,833
|
|
|
1,794
|
|
|
8,149
|
|
|
163
|
|
|
161,982
|
|
|
1,957
|
|
||||||
Total Temporarily Impaired Available for Sale Securities
|
230,302
|
|
|
2,753
|
|
|
29,842
|
|
|
1,210
|
|
|
260,144
|
|
|
3,963
|
|
||||||
Temporarily Impaired Held to Maturity Securities at September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Government-sponsored agency securities
|
9,941
|
|
|
78
|
|
|
12,267
|
|
|
233
|
|
|
22,208
|
|
|
311
|
|
||||||
State and municipal
|
18,754
|
|
|
402
|
|
|
6,216
|
|
|
173
|
|
|
24,970
|
|
|
575
|
|
||||||
U.S. Government-sponsored mortgage-backed securities
|
74,950
|
|
|
812
|
|
|
|
|
|
|
74,950
|
|
|
812
|
|
||||||||
Total Temporarily Impaired Held to Maturity Securities
|
103,645
|
|
|
1,292
|
|
|
18,483
|
|
|
406
|
|
|
122,128
|
|
|
1,698
|
|
||||||
Total Temporarily Impaired Investment Securities
|
$
|
333,947
|
|
|
$
|
4,045
|
|
|
$
|
48,325
|
|
|
$
|
1,616
|
|
|
$
|
382,272
|
|
|
$
|
5,661
|
|
|
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, 2016
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
State and municipal
|
$
|
126,593
|
|
|
$
|
5,564
|
|
|
|
|
|
|
$
|
126,593
|
|
|
$
|
5,564
|
|
U.S. Government-sponsored mortgage-backed securities
|
185,544
|
|
|
3,071
|
|
|
|
|
|
|
185,544
|
|
|
3,071
|
|
||||
Equity Securities
|
18,765
|
|
|
1,039
|
|
|
|
|
|
|
18,765
|
|
|
1,039
|
|
||||
Total Temporarily Impaired Available for Sale Securities
|
330,902
|
|
|
9,674
|
|
|
|
|
|
|
330,902
|
|
|
9,674
|
|
||||
Temporarily Impaired Held to Maturity Securities at December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. Government-sponsored agency securities
|
19,121
|
|
|
479
|
|
|
|
|
|
|
19,121
|
|
|
479
|
|
||||
State and municipal
|
50,897
|
|
|
1,796
|
|
|
|
|
|
|
50,897
|
|
|
1,796
|
|
||||
U.S. Government-sponsored mortgage-backed securities
|
109,377
|
|
|
1,527
|
|
|
|
|
|
|
109,377
|
|
|
1,527
|
|
||||
Total Temporarily Impaired Held to Maturity Securities
|
179,395
|
|
|
3,802
|
|
|
|
|
|
|
179,395
|
|
|
3,802
|
|
||||
Total Temporarily Impaired Investment Securities
|
$
|
510,297
|
|
|
$
|
13,476
|
|
|
|
|
|
|
$
|
510,297
|
|
|
$
|
13,476
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Investments reported at less than historical cost:
|
|
|
|
||||
Historical cost
|
$
|
388,181
|
|
|
$
|
523,773
|
|
Fair value
|
$
|
382,272
|
|
|
$
|
510,297
|
|
Percent of the Corporation's investment portfolio
|
26.0
|
%
|
|
39.1
|
%
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Commercial and industrial loans
|
$
|
1,436,092
|
|
|
$
|
1,194,646
|
|
Agricultural production financing and other loans to farmers
|
117,751
|
|
|
79,689
|
|
||
Real estate loans:
|
|
|
|
||||
Construction
|
498,862
|
|
|
418,703
|
|
||
Commercial and farmland
|
2,571,253
|
|
|
1,953,062
|
|
||
Residential
|
938,437
|
|
|
739,169
|
|
||
Home equity
|
502,240
|
|
|
418,525
|
|
||
Individuals' loans for household and other personal expenditures
|
86,406
|
|
|
77,479
|
|
||
Lease financing receivables, net of unearned income
|
3,877
|
|
|
311
|
|
||
Other commercial loans
|
328,530
|
|
|
258,061
|
|
||
Loans
|
$
|
6,483,448
|
|
|
$
|
5,139,645
|
|
Allowance for loan losses
|
(73,354
|
)
|
|
(66,037
|
)
|
||
Net Loans
|
$
|
6,410,094
|
|
|
$
|
5,073,608
|
|
|
Three Months Ended September 30, 2017
|
||||||||||||||||||||||
|
Commercial
|
|
Commercial
Real Estate |
|
Consumer
|
|
Residential
|
|
Finance
Leases |
|
Total
|
||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balances, June 30, 2017
|
$
|
28,906
|
|
|
$
|
25,236
|
|
|
$
|
3,372
|
|
|
$
|
12,955
|
|
|
$
|
2
|
|
|
$
|
70,471
|
|
Provision for losses
|
921
|
|
|
374
|
|
|
342
|
|
|
446
|
|
|
|
|
2,083
|
|
|||||||
Recoveries on loans
|
324
|
|
|
1,327
|
|
|
51
|
|
|
157
|
|
|
|
|
1,859
|
|
|||||||
Loans charged-off
|
(468
|
)
|
|
(190
|
)
|
|
(174
|
)
|
|
(227
|
)
|
|
|
|
(1,059
|
)
|
|||||||
Balances, September 30, 2017
|
$
|
29,683
|
|
|
$
|
26,747
|
|
|
$
|
3,591
|
|
|
$
|
13,331
|
|
|
$
|
2
|
|
|
$
|
73,354
|
|
|
Nine Months Ended September 30, 2017
|
||||||||||||||||||||||
|
Commercial
|
|
Commercial
Real Estate |
|
Consumer
|
|
Residential
|
|
Finance
Leases |
|
Total
|
||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balances, December 31, 2016
|
$
|
27,696
|
|
|
$
|
23,661
|
|
|
$
|
2,923
|
|
|
$
|
11,755
|
|
|
$
|
2
|
|
|
$
|
66,037
|
|
Provision for losses
|
2,279
|
|
|
2,023
|
|
|
877
|
|
|
2,164
|
|
|
|
|
7,343
|
|
|||||||
Recoveries on loans
|
987
|
|
|
2,066
|
|
|
253
|
|
|
547
|
|
|
|
|
3,853
|
|
|||||||
Loans charged-off
|
(1,279
|
)
|
|
(1,003
|
)
|
|
(462
|
)
|
|
(1,135
|
)
|
|
|
|
(3,879
|
)
|
|||||||
Balances, September 30, 2017
|
$
|
29,683
|
|
|
$
|
26,747
|
|
|
$
|
3,591
|
|
|
$
|
13,331
|
|
|
$
|
2
|
|
|
$
|
73,354
|
|
|
Three Months Ended September 30, 2016
|
||||||||||||||||||||||
|
Commercial
|
|
Commercial
Real Estate |
|
Consumer
|
|
Residential
|
|
Finance
Leases |
|
Total
|
||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balances, June 30, 2016
|
$
|
26,321
|
|
|
$
|
22,280
|
|
|
$
|
2,684
|
|
|
$
|
10,899
|
|
|
$
|
2
|
|
|
$
|
62,186
|
|
Provision for losses
|
727
|
|
|
578
|
|
|
115
|
|
|
480
|
|
|
|
|
|
1,900
|
|
||||||
Recoveries on loans
|
175
|
|
|
651
|
|
|
101
|
|
|
324
|
|
|
|
|
|
1,251
|
|
||||||
Loans charged-off
|
(720
|
)
|
|
(572
|
)
|
|
(114
|
)
|
|
(475
|
)
|
|
|
|
(1,881
|
)
|
|||||||
Balances, September 30, 2016
|
$
|
26,503
|
|
|
$
|
22,937
|
|
|
$
|
2,786
|
|
|
$
|
11,228
|
|
|
$
|
2
|
|
|
$
|
63,456
|
|
|
Nine Months Ended September 30, 2016
|
||||||||||||||||||||||
|
Commercial
|
|
Commercial
Real Estate |
|
Consumer
|
|
Residential
|
|
Finance
Leases |
|
Total
|
||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balances, December 31, 2015
|
$
|
26,478
|
|
|
$
|
22,145
|
|
|
$
|
2,689
|
|
|
$
|
11,139
|
|
|
$
|
2
|
|
|
$
|
62,453
|
|
Provision for losses
|
1,266
|
|
|
992
|
|
|
192
|
|
|
790
|
|
|
|
|
|
3,240
|
|
||||||
Recoveries on loans
|
1,150
|
|
|
1,879
|
|
|
286
|
|
|
909
|
|
|
|
|
|
4,224
|
|
||||||
Loans charged-off
|
(2,391
|
)
|
|
(2,079
|
)
|
|
(381
|
)
|
|
(1,610
|
)
|
|
|
|
(6,461
|
)
|
|||||||
Balances, September 30, 2016
|
$
|
26,503
|
|
|
$
|
22,937
|
|
|
$
|
2,786
|
|
|
$
|
11,228
|
|
|
$
|
2
|
|
|
$
|
63,456
|
|
|
September 30, 2017
|
||||||||||||||||||||||
|
Commercial
|
|
Commercial
Real Estate |
|
Consumer
|
|
Residential
|
|
Finance
Leases |
|
Total
|
||||||||||||
Allowance Balances:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
$
|
476
|
|
|
$
|
923
|
|
|
|
|
$
|
389
|
|
|
|
|
$
|
1,788
|
|
||||
Collectively evaluated for impairment
|
29,207
|
|
|
25,824
|
|
|
$
|
3,591
|
|
|
12,942
|
|
|
$
|
2
|
|
|
71,566
|
|
||||
Loans Acquired with Deteriorated Credit Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total Allowance for Loan Losses
|
$
|
29,683
|
|
|
$
|
26,747
|
|
|
$
|
3,591
|
|
|
$
|
13,331
|
|
|
$
|
2
|
|
|
$
|
73,354
|
|
Loan Balances:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
$
|
6,781
|
|
|
$
|
18,911
|
|
|
$
|
6
|
|
|
$
|
4,073
|
|
|
|
|
$
|
29,771
|
|
||
Collectively evaluated for impairment
|
1,874,225
|
|
|
3,027,247
|
|
|
86,400
|
|
|
1,435,089
|
|
|
$
|
3,877
|
|
|
6,426,838
|
|
|||||
Loans Acquired with Deteriorated Credit Quality
|
1,367
|
|
|
23,957
|
|
|
|
|
|
1,515
|
|
|
|
|
|
26,839
|
|
||||||
Loans
|
$
|
1,882,373
|
|
|
$
|
3,070,115
|
|
|
$
|
86,406
|
|
|
$
|
1,440,677
|
|
|
$
|
3,877
|
|
|
$
|
6,483,448
|
|
|
December 31, 2016
|
||||||||||||||||||||||
|
Commercial
|
|
Commercial
Real Estate |
|
Consumer
|
|
Residential
|
|
Finance
Leases |
|
Total
|
||||||||||||
Allowance Balances:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
$
|
37
|
|
|
$
|
553
|
|
|
|
|
$
|
298
|
|
|
|
|
$
|
888
|
|
||||
Collectively evaluated for impairment
|
27,659
|
|
|
23,108
|
|
|
$
|
2,923
|
|
|
11,457
|
|
|
$
|
2
|
|
|
65,149
|
|
||||
Loans Acquired with Deteriorated Credit Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total Allowance for Loan Losses
|
$
|
27,696
|
|
|
$
|
23,661
|
|
|
$
|
2,923
|
|
|
$
|
11,755
|
|
|
$
|
2
|
|
|
$
|
66,037
|
|
Loan Balances:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
$
|
4,762
|
|
|
$
|
21,358
|
|
|
$
|
9
|
|
|
$
|
4,450
|
|
|
|
|
$
|
30,579
|
|
||
Collectively evaluated for impairment
|
1,520,981
|
|
|
2,315,686
|
|
|
77,470
|
|
|
1,151,396
|
|
|
$
|
311
|
|
|
5,065,844
|
|
|||||
Loans Acquired with Deteriorated Credit Quality
|
6,653
|
|
|
34,721
|
|
|
|
|
|
1,848
|
|
|
|
|
|
43,222
|
|
||||||
Loans
|
$
|
1,532,396
|
|
|
$
|
2,371,765
|
|
|
$
|
77,479
|
|
|
$
|
1,157,694
|
|
|
$
|
311
|
|
|
$
|
5,139,645
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Commercial and industrial loans
|
$
|
4,910
|
|
|
$
|
1,839
|
|
Agriculture production financing and other loans to farmers
|
1,282
|
|
|
1,329
|
|
||
Real estate loans:
|
|
|
|
||||
Construction
|
67
|
|
|
73
|
|
||
Commercial and farmland
|
12,152
|
|
|
15,754
|
|
||
Residential
|
11,973
|
|
|
9,523
|
|
||
Home equity
|
1,818
|
|
|
1,457
|
|
||
Individuals' loans for household and other personal expenditures
|
51
|
|
|
23
|
|
||
Total
|
$
|
32,253
|
|
|
$
|
29,998
|
|
|
September 30, 2017
|
||||||||||
|
Unpaid
Principal Balance |
|
Recorded
Investment |
|
Related
Allowance |
||||||
Impaired loans with no related allowance:
|
|
|
|
|
|
||||||
Commercial and industrial loans
|
$
|
15,443
|
|
|
$
|
4,526
|
|
|
|
|
|
Agriculture production financing and other loans to farmers
|
1,818
|
|
|
1,489
|
|
|
|
|
|||
Real estate Loans:
|
|
|
|
|
|
||||||
Construction
|
2,583
|
|
|
1,422
|
|
|
|
|
|||
Commercial and farmland
|
51,302
|
|
|
38,098
|
|
|
|
|
|||
Residential
|
5,611
|
|
|
3,310
|
|
|
|
|
|||
Home equity
|
195
|
|
|
154
|
|
|
|
|
|||
Total
|
76,952
|
|
|
48,999
|
|
|
|
|
|||
Impaired loans with related allowance:
|
|
|
|
|
|
||||||
Commercial and industrial loans
|
1,824
|
|
|
1,796
|
|
|
$
|
206
|
|
||
Agriculture production financing and other loans to farmers
|
357
|
|
|
337
|
|
|
270
|
|
|||
Real estate Loans:
|
|
|
|
|
|
||||||
Commercial and farmland
|
4,077
|
|
|
3,347
|
|
|
923
|
|
|||
Total
|
6,258
|
|
|
5,480
|
|
|
1,399
|
|
|||
Total Impaired Loans
|
$
|
83,210
|
|
|
$
|
54,479
|
|
|
$
|
1,399
|
|
|
December 31, 2016
|
||||||||||
|
Unpaid
Principal Balance |
|
Recorded
Investment |
|
Related
Allowance |
||||||
Impaired loans with no related allowance:
|
|
|
|
|
|
||||||
Commercial and industrial loans
|
$
|
17,645
|
|
|
$
|
10,074
|
|
|
|
||
Agriculture production financing and other loans to farmers
|
757
|
|
|
680
|
|
|
|
||||
Real estate Loans:
|
|
|
|
|
|
||||||
Construction
|
5,946
|
|
|
3,178
|
|
|
|
||||
Commercial and farmland
|
67,936
|
|
|
49,731
|
|
|
|
||||
Residential
|
8,039
|
|
|
4,664
|
|
|
|
||||
Home equity
|
82
|
|
|
44
|
|
|
|
||||
Other commercial loans
|
11
|
|
|
|
|
|
|
||||
Total
|
100,416
|
|
|
68,371
|
|
|
|
||||
Impaired loans with related allowance:
|
|
|
|
|
|
||||||
Agriculture production financing and other loans to farmers
|
660
|
|
|
660
|
|
|
$
|
36
|
|
||
Real estate Loans:
|
|
|
|
|
|
||||||
Commercial and farmland
|
4,238
|
|
|
2,985
|
|
|
553
|
|
|||
Residential
|
65
|
|
|
34
|
|
|
23
|
|
|||
Total
|
4,963
|
|
|
3,679
|
|
|
612
|
|
|||
Total Impaired Loans
|
$
|
105,379
|
|
|
$
|
72,050
|
|
|
$
|
612
|
|
|
Three Months Ended September 30, 2017
|
|
Nine Months Ended September 30, 2017
|
||||||||||||
|
Average
Recorded Investment |
|
Interest
Income Recognized |
|
Average
Recorded Investment |
|
Interest
Income Recognized |
||||||||
Impaired loans with no related allowance:
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial loans
|
$
|
4,668
|
|
|
$
|
56
|
|
|
$
|
8,821
|
|
|
$
|
149
|
|
Agriculture production financing and other loans to farmers
|
1,489
|
|
|
9
|
|
|
1,491
|
|
|
9
|
|
||||
Real estate Loans:
|
|
|
|
|
|
|
|
||||||||
Construction
|
1,427
|
|
|
26
|
|
|
1,438
|
|
|
36
|
|
||||
Commercial and farmland
|
40,668
|
|
|
475
|
|
|
42,459
|
|
|
1,266
|
|
||||
Residential
|
3,410
|
|
|
31
|
|
|
3,637
|
|
|
92
|
|
||||
Home equity
|
158
|
|
|
1
|
|
|
163
|
|
|
1
|
|
||||
Total
|
51,820
|
|
|
598
|
|
|
58,009
|
|
|
1,553
|
|
||||
Impaired loans with related allowance:
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial loans
|
1,796
|
|
|
|
|
1,796
|
|
|
|
||||||
Agriculture production financing and other loans to farmers
|
337
|
|
|
|
|
|
337
|
|
|
|
|
||||
Real estate Loans:
|
|
|
|
|
|
|
|
||||||||
Commercial and farmland
|
3,359
|
|
|
|
|
3,377
|
|
|
4
|
|
|||||
Total
|
5,492
|
|
|
|
|
5,510
|
|
|
4
|
|
|||||
Total Impaired Loans
|
$
|
57,312
|
|
|
$
|
598
|
|
|
$
|
63,519
|
|
|
$
|
1,557
|
|
|
Three Months Ended September 30, 2016
|
|
Nine Months Ended September 30, 2016
|
||||||||||||
|
Average
Recorded Investment |
|
Interest
Income Recognized |
|
Average
Recorded Investment |
|
Interest
Income Recognized |
||||||||
Impaired loans with no related allowance:
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial loans
|
$
|
10,025
|
|
|
$
|
89
|
|
|
$
|
10,436
|
|
|
$
|
261
|
|
Agriculture production financing and other loans to farmers
|
636
|
|
|
3
|
|
|
644
|
|
|
3
|
|
||||
Real estate Loans:
|
|
|
|
|
|
|
|
||||||||
Construction
|
3,526
|
|
|
72
|
|
|
3,572
|
|
|
215
|
|
||||
Commercial and farmland
|
61,903
|
|
|
854
|
|
|
63,722
|
|
|
2,576
|
|
||||
Residential
|
5,081
|
|
|
40
|
|
|
5,453
|
|
|
118
|
|
||||
Home equity
|
44
|
|
|
|
|
|
57
|
|
|
|
|
||||
Total
|
81,215
|
|
|
1,058
|
|
|
83,884
|
|
|
3,173
|
|
||||
Impaired loans with related allowance:
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial loans
|
469
|
|
|
|
|
471
|
|
|
|
|
|||||
Agriculture production financing and other loans to farmers
|
1,164
|
|
|
6
|
|
|
1,236
|
|
|
6
|
|
||||
Real estate Loans:
|
|
|
|
|
|
|
|
||||||||
Commercial and farmland
|
1,850
|
|
|
|
|
|
1,894
|
|
|
|
|
||||
Residential
|
34
|
|
|
|
|
39
|
|
|
|
|
|||||
Total
|
3,517
|
|
|
6
|
|
|
3,640
|
|
|
6
|
|
||||
Total Impaired Loans
|
$
|
84,732
|
|
|
$
|
1,064
|
|
|
$
|
87,524
|
|
|
$
|
3,179
|
|
•
|
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.
|
|
September 30, 2017
|
||||||||||||||||||||||||||||
|
Commercial
Pass |
|
Commercial
Special Mention |
|
Commercial Substandard
|
|
Commercial
Doubtful |
|
Commercial Loss
|
|
Consumer Performing
|
|
Consumer
Non-Performing |
|
Total
|
||||||||||||||
Commercial and industrial loans
|
$
|
1,366,945
|
|
|
$
|
43,245
|
|
|
$
|
25,234
|
|
|
$
|
668
|
|
|
|
|
|
|
|
|
$
|
1,436,092
|
|
||||
Agriculture production financing and other loans to farmers
|
64,699
|
|
|
29,765
|
|
|
22,516
|
|
|
622
|
|
|
|
|
$
|
149
|
|
|
|
|
117,751
|
|
|||||||
Real estate Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction
|
469,967
|
|
|
1,619
|
|
|
986
|
|
|
|
|
|
|
26,155
|
|
|
$
|
135
|
|
|
498,862
|
|
|||||||
Commercial and farmland
|
2,409,972
|
|
|
70,397
|
|
|
85,732
|
|
|
1,976
|
|
|
|
|
3,173
|
|
|
3
|
|
|
2,571,253
|
|
|||||||
Residential
|
175,260
|
|
|
4,161
|
|
|
4,259
|
|
|
149
|
|
|
|
|
743,713
|
|
|
10,895
|
|
|
938,437
|
|
|||||||
Home equity
|
25,610
|
|
|
|
|
|
124
|
|
|
112
|
|
|
|
|
474,465
|
|
|
1,929
|
|
|
502,240
|
|
|||||||
Individuals' loans for household and other personal expenditures
|
|
|
|
|
|
|
|
|
|
|
86,340
|
|
|
66
|
|
|
86,406
|
|
|||||||||||
Lease financing receivables, net of unearned income
|
3,497
|
|
|
380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,877
|
|
|||||||||
Other commercial loans
|
327,483
|
|
|
|
|
1,047
|
|
|
|
|
|
|
|
|
|
|
328,530
|
|
|||||||||||
Loans
|
$
|
4,843,433
|
|
|
$
|
149,567
|
|
|
$
|
139,898
|
|
|
$
|
3,527
|
|
|
|
|
$
|
1,333,995
|
|
|
$
|
13,028
|
|
|
$
|
6,483,448
|
|
|
December 31, 2016
|
||||||||||||||||||||||||||
|
Commercial
Pass |
|
Commercial
Special Mention |
|
Commercial Substandard
|
|
Commercial
Doubtful |
|
Commercial Loss
|
|
Consumer Performing
|
|
Consumer
Non-Performing |
|
Total
|
||||||||||||
Commercial and industrial loans
|
$
|
1,117,545
|
|
|
$
|
30,919
|
|
|
$
|
46,182
|
|
|
|
|
|
|
|
|
|
|
$
|
1,194,646
|
|
||||
Agriculture production financing and other loans to farmers
|
30,712
|
|
|
25,273
|
|
|
23,704
|
|
|
|
|
|
|
|
|
|
|
79,689
|
|
||||||||
Real estate Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
398,646
|
|
|
3,490
|
|
|
1,858
|
|
|
|
|
|
|
$
|
14,636
|
|
|
$
|
73
|
|
|
418,703
|
|
||||
Commercial and farmland
|
1,811,367
|
|
|
60,028
|
|
|
80,626
|
|
|
|
|
|
|
1,034
|
|
|
7
|
|
|
1,953,062
|
|
||||||
Residential
|
146,251
|
|
|
5,106
|
|
|
6,046
|
|
|
|
|
|
|
574,054
|
|
|
7,712
|
|
|
739,169
|
|
||||||
Home equity
|
7,310
|
|
|
47
|
|
|
516
|
|
|
|
|
|
|
409,237
|
|
|
1,415
|
|
|
418,525
|
|
||||||
Individuals' loans for household and other personal expenditures
|
|
|
|
|
|
|
|
|
|
|
77,456
|
|
|
23
|
|
|
77,479
|
|
|||||||||
Lease financing receivables, net of unearned income
|
228
|
|
|
|
|
83
|
|
|
|
|
|
|
|
|
|
|
|
311
|
|
||||||||
Other commercial loans
|
257,861
|
|
|
|
|
|
200
|
|
|
|
|
|
|
|
|
|
|
258,061
|
|
||||||||
Loans
|
$
|
3,769,920
|
|
|
$
|
124,863
|
|
|
$
|
159,215
|
|
|
|
|
|
|
$
|
1,076,417
|
|
|
$
|
9,230
|
|
|
$
|
5,139,645
|
|
|
September 30, 2017
|
||||||||||||||||||||||||||
|
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
|
$
|
1,430,469
|
|
|
$
|
196
|
|
|
$
|
492
|
|
|
$
|
25
|
|
|
$
|
4,910
|
|
|
$
|
5,623
|
|
|
$
|
1,436,092
|
|
Agriculture production financing and other loans to farmers
|
116,410
|
|
|
59
|
|
|
|
|
|
|
|
|
1,282
|
|
|
1,341
|
|
|
117,751
|
|
|||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction
|
498,233
|
|
|
432
|
|
|
62
|
|
|
68
|
|
|
67
|
|
|
629
|
|
|
498,862
|
|
|||||||
Commercial and farmland
|
2,555,261
|
|
|
2,952
|
|
|
879
|
|
|
9
|
|
|
12,152
|
|
|
15,992
|
|
|
2,571,253
|
|
|||||||
Residential
|
922,848
|
|
|
2,960
|
|
|
613
|
|
|
43
|
|
|
11,973
|
|
|
15,589
|
|
|
938,437
|
|
|||||||
Home equity
|
497,692
|
|
|
1,880
|
|
|
585
|
|
|
265
|
|
|
1,818
|
|
|
4,548
|
|
|
502,240
|
|
|||||||
Individuals' loans for household and other personal expenditures
|
85,877
|
|
|
300
|
|
|
163
|
|
|
15
|
|
|
51
|
|
|
529
|
|
|
86,406
|
|
|||||||
Lease financing receivables, net of unearned income
|
3,877
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,877
|
|
||||||||||
Other commercial loans
|
328,390
|
|
|
|
|
140
|
|
|
|
|
|
|
|
140
|
|
|
328,530
|
|
|||||||||
Loans
|
$
|
6,439,057
|
|
|
$
|
8,779
|
|
|
$
|
2,934
|
|
|
$
|
425
|
|
|
$
|
32,253
|
|
|
$
|
44,391
|
|
|
$
|
6,483,448
|
|
|
December 31, 2016
|
||||||||||||||||||||||||||
|
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
|
$
|
1,192,079
|
|
|
$
|
466
|
|
|
$
|
162
|
|
|
$
|
100
|
|
|
$
|
1,839
|
|
|
$
|
2,567
|
|
|
$
|
1,194,646
|
|
Agriculture production financing and other loans to farmers
|
78,360
|
|
|
|
|
|
|
|
|
|
1,329
|
|
|
1,329
|
|
|
79,689
|
|
|||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction
|
415,975
|
|
|
2,655
|
|
|
|
|
|
|
|
|
73
|
|
|
2,728
|
|
|
418,703
|
|
|||||||
Commercial and farmland
|
1,932,896
|
|
|
1,385
|
|
|
3,027
|
|
|
|
|
15,754
|
|
|
20,166
|
|
|
1,953,062
|
|
||||||||
Residential
|
725,338
|
|
|
3,664
|
|
|
635
|
|
|
9
|
|
|
9,523
|
|
|
13,831
|
|
|
739,169
|
|
|||||||
Home equity
|
415,969
|
|
|
850
|
|
|
246
|
|
|
3
|
|
|
1,457
|
|
|
2,556
|
|
|
418,525
|
|
|||||||
Individuals' loans for household and other personal expenditures
|
76,929
|
|
|
470
|
|
|
57
|
|
|
|
|
|
23
|
|
|
550
|
|
|
77,479
|
|
|||||||
Lease financing receivables, net of unearned income
|
311
|
|
|
|
|
|
|
|
|
|
|
|
|
311
|
|
||||||||||||
Other commercial loans
|
258,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
258,061
|
|
||||||||||
Loans
|
$
|
5,095,918
|
|
|
$
|
9,490
|
|
|
$
|
4,127
|
|
|
$
|
112
|
|
|
$
|
29,998
|
|
|
$
|
43,727
|
|
|
$
|
5,139,645
|
|
|
Three Months Ended September 30, 2017
|
|
Nine Months Ended September 30, 2017
|
||||||||||||||||||
|
Pre-Modification
Recorded Balance |
|
Post-Modification
Recorded Balance |
|
Number
of Loans |
|
Pre-Modification
Recorded Balance |
|
Post-Modification
Recorded Balance |
|
Number
of Loans |
||||||||||
Commercial and industrial loans
|
$
|
6
|
|
|
$
|
6
|
|
|
1
|
|
|
$
|
400
|
|
|
$
|
176
|
|
|
2
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and farmland
|
|
|
|
|
|
|
|
|
|
357
|
|
|
492
|
|
|
6
|
|
||||
Residential
|
120
|
|
|
122
|
|
|
1
|
|
|
570
|
|
|
520
|
|
|
8
|
|
||||
Home equity
|
68
|
|
|
73
|
|
|
2
|
|
|
190
|
|
|
73
|
|
|
2
|
|
||||
Total
|
$
|
194
|
|
|
$
|
201
|
|
|
4
|
|
|
$
|
1,517
|
|
|
$
|
1,261
|
|
|
18
|
|
|
Three Months Ended September 30, 2016
|
|
Nine Months Ended September 30, 2016
|
||||||||||||||||||
|
Pre-Modification
Recorded Balance |
|
Post-Modification
Recorded Balance |
|
Number
of Loans |
|
Pre-Modification
Recorded Balance |
|
Post-Modification
Recorded Balance |
|
Number
of Loans |
||||||||||
Commercial and industrial loans
|
|
|
|
|
|
|
|
|
|
$
|
260
|
|
|
$
|
260
|
|
|
3
|
|
||
Agriculture production financing and other loans to farmers
|
|
|
|
|
|
|
|
|
|
1,606
|
|
|
1,472
|
|
|
5
|
|
||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and farmland
|
$
|
87
|
|
|
$
|
95
|
|
|
1
|
|
|
3,978
|
|
|
3,955
|
|
|
7
|
|
||
Residential
|
611
|
|
|
678
|
|
|
11
|
|
|
724
|
|
|
811
|
|
|
14
|
|
||||
Home equity
|
55
|
|
|
58
|
|
|
2
|
|
|
229
|
|
|
204
|
|
|
3
|
|
||||
Total
|
$
|
753
|
|
|
$
|
831
|
|
|
14
|
|
|
$
|
6,797
|
|
|
$
|
6,702
|
|
|
32
|
|
|
Three Months Ended September 30, 2017
|
||||||||||||
|
Term
Modification |
|
Rate
Modification |
|
Combination
|
|
Total
Modification |
||||||
Commercial and industrial loans
|
$
|
5
|
|
|
|
|
|
|
$
|
5
|
|
||
Real estate loans:
|
|
|
|
|
|
|
|
||||||
Residential
|
|
|
|
$
|
122
|
|
|
|
|
122
|
|
||
Home equity
|
|
|
73
|
|
|
|
|
73
|
|
||||
Total
|
$
|
5
|
|
|
$
|
195
|
|
|
|
|
$
|
200
|
|
|
Nine Months Ended September 30, 2017
|
||||||||||||||
|
Term
Modification |
|
Rate
Modification |
|
Combination
|
|
Total
Modification |
||||||||
Commercial and industrial loans
|
$
|
5
|
|
|
|
|
$
|
168
|
|
|
$
|
173
|
|
||
Real estate loans:
|
|
|
|
|
|
|
|
||||||||
Commercial and farmland
|
41
|
|
|
$
|
61
|
|
|
232
|
|
|
334
|
|
|||
Residential
|
|
|
|
466
|
|
|
42
|
|
|
508
|
|
||||
Home Equity
|
|
|
73
|
|
|
|
|
|
73
|
|
|||||
Total
|
$
|
46
|
|
|
$
|
600
|
|
|
$
|
442
|
|
|
$
|
1,088
|
|
|
Three Months Ended September 30, 2016
|
||||||||||||
|
Term
Modification |
|
Rate
Modification |
|
Combination
|
|
Total
Modification |
||||||
Real estate loans:
|
|
|
|
|
|
|
|
||||||
Commercial and farmland
|
|
|
|
|
|
$
|
95
|
|
|
$
|
95
|
|
|
Residential
|
|
|
$
|
663
|
|
|
|
|
|
663
|
|
||
Home equity
|
|
|
56
|
|
|
|
|
|
56
|
|
|||
Total
|
|
|
$
|
719
|
|
|
$
|
95
|
|
|
$
|
814
|
|
|
Nine Months Ended September 30, 2016
|
||||||||||||||
|
Term
Modification |
|
Rate
Modification |
|
Combination
|
|
Total
Modification |
||||||||
Commercial and industrial loans
|
|
|
|
|
|
$
|
197
|
|
|
$
|
197
|
|
|||
Agriculture production financing and other loans to farmers
|
$
|
898
|
|
|
|
|
|
|
|
898
|
|
||||
Real estate loans:
|
|
|
|
|
|
|
|
||||||||
Commercial and farmland
|
416
|
|
|
|
|
|
3,487
|
|
|
3,903
|
|
||||
Residential
|
|
|
|
$
|
773
|
|
|
|
|
|
773
|
|
|||
Home equity
|
|
|
|
197
|
|
|
|
|
|
197
|
|
||||
Total
|
$
|
1,314
|
|
|
$
|
970
|
|
|
$
|
3,684
|
|
|
$
|
5,968
|
|
|
|
|
|
|
Three Months Ended September 30, 2016
|
|
Nine Months Ended September 30, 2016
|
|||||||||
|
Number of
Loans |
|
Recorded
Balance |
|
Number of
Loans |
|
Recorded
Balance |
|||||
Commercial and industrial loans
|
|
|
|
|
|
3
|
|
|
$
|
197
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
||||
Residential
|
1
|
|
$
|
54
|
|
|
1
|
|
|
54
|
|
|
Total
|
1
|
|
$
|
54
|
|
|
4
|
|
|
$
|
251
|
|
|
September 30, 2017
|
||||||||||||||||||||||||||||||
|
IAB
|
|
Arlington Bank
|
|
Ameriana
|
|
C Financial
|
|
Community
|
|
CFS
|
|
SCB
|
|
Total
|
||||||||||||||||
Outstanding Balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial and industrial loans
|
$
|
107,827
|
|
|
$
|
4,131
|
|
|
$
|
4,823
|
|
|
$
|
70
|
|
|
$
|
409
|
|
|
$
|
9,509
|
|
|
$
|
2,171
|
|
|
$
|
128,940
|
|
Agricultural production financing and other loans to
farmers |
39,558
|
|
|
|
|
|
|
|
|
93
|
|
|
50
|
|
|
1,116
|
|
|
40,817
|
|
|||||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Construction
|
32,866
|
|
|
16,025
|
|
|
9,269
|
|
|
1,122
|
|
|
1,721
|
|
|
103
|
|
|
|
|
61,106
|
|
|||||||||
Commercial and farmland
|
370,664
|
|
|
84,212
|
|
|
83,030
|
|
|
18,149
|
|
|
29,681
|
|
|
83,186
|
|
|
6,970
|
|
|
675,892
|
|
||||||||
Residential
|
106,466
|
|
|
71,752
|
|
|
89,773
|
|
|
35,027
|
|
|
6,845
|
|
|
83,421
|
|
|
3,104
|
|
|
396,388
|
|
||||||||
Home equity
|
38,581
|
|
|
26,918
|
|
|
9,333
|
|
|
6,211
|
|
|
4,615
|
|
|
21,306
|
|
|
10,298
|
|
|
117,262
|
|
||||||||
Individuals' loans for household and other personal
expenditures |
4,236
|
|
|
755
|
|
|
417
|
|
|
|
|
89
|
|
|
57
|
|
|
23
|
|
|
5,577
|
|
|||||||||
Lease financing receivables, net of unearned income
|
2,405
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,405
|
|
||||||||||||||
Other commercial loans
|
12,960
|
|
|
94
|
|
|
1,745
|
|
|
|
|
|
|
60
|
|
|
|
|
14,859
|
|
|||||||||||
Total
|
715,563
|
|
|
203,887
|
|
|
198,390
|
|
|
60,579
|
|
|
43,453
|
|
|
197,692
|
|
|
23,682
|
|
|
1,443,246
|
|
||||||||
Remaining fair value discount
|
(22,501
|
)
|
|
(5,901
|
)
|
|
(7,065
|
)
|
|
(1,383
|
)
|
|
(2,545
|
)
|
|
(6,185
|
)
|
|
(2,298
|
)
|
|
(47,878
|
)
|
||||||||
Carrying amount
|
693,062
|
|
|
197,986
|
|
|
191,325
|
|
|
59,196
|
|
|
40,908
|
|
|
191,507
|
|
|
21,384
|
|
|
1,395,368
|
|
||||||||
Allowance
|
362
|
|
|
|
|
411
|
|
|
|
|
52
|
|
|
38
|
|
|
|
|
863
|
|
|||||||||||
Carrying amount net of allowance
|
$
|
692,700
|
|
|
$
|
197,986
|
|
|
$
|
190,914
|
|
|
$
|
59,196
|
|
|
$
|
40,856
|
|
|
$
|
191,469
|
|
|
$
|
21,384
|
|
|
$
|
1,394,505
|
|
|
December 31, 2016
|
||||||||||||||||||||||
|
Ameriana
|
|
C Financial
|
|
Community
|
|
CFS
|
|
SCB
|
|
Total
|
||||||||||||
Outstanding Balance:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial loans
|
$
|
8,003
|
|
|
$
|
85
|
|
|
$
|
2,269
|
|
|
$
|
23,327
|
|
|
$
|
3,552
|
|
|
$
|
37,236
|
|
Agricultural production financing and other loans to
farmers |
|
|
|
|
1,030
|
|
|
50
|
|
|
1,630
|
|
|
2,710
|
|
||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
22,017
|
|
|
2,835
|
|
|
4,026
|
|
|
420
|
|
|
|
|
29,298
|
|
|||||||
Commercial and farmland
|
103,075
|
|
|
22,130
|
|
|
36,947
|
|
|
131,895
|
|
|
9,315
|
|
|
303,362
|
|
||||||
Residential
|
103,414
|
|
|
44,101
|
|
|
9,363
|
|
|
96,627
|
|
|
4,135
|
|
|
257,640
|
|
||||||
Home equity
|
11,728
|
|
|
7,947
|
|
|
6,326
|
|
|
26,894
|
|
|
11,924
|
|
|
64,819
|
|
||||||
Individuals' loans for household and other personal
expenditures |
762
|
|
|
2
|
|
|
147
|
|
|
201
|
|
|
30
|
|
|
1,142
|
|
||||||
Other commercial loans
|
1,825
|
|
|
|
|
|
|
65
|
|
|
|
|
1,890
|
|
|||||||||
Total
|
250,824
|
|
|
77,100
|
|
|
60,108
|
|
|
279,479
|
|
|
30,586
|
|
|
698,097
|
|
||||||
Remaining fair value discount
|
(10,771
|
)
|
|
(1,906
|
)
|
|
(4,101
|
)
|
|
(12,634
|
)
|
|
(3,268
|
)
|
|
(32,680
|
)
|
||||||
Carrying amount
|
240,053
|
|
|
75,194
|
|
|
56,007
|
|
|
266,845
|
|
|
27,318
|
|
|
665,417
|
|
||||||
Allowance
|
265
|
|
|
|
|
23
|
|
|
92
|
|
|
|
|
380
|
|
||||||||
Carrying amount net of allowance
|
$
|
239,788
|
|
|
$
|
75,194
|
|
|
$
|
55,984
|
|
|
$
|
266,753
|
|
|
$
|
27,318
|
|
|
$
|
665,037
|
|
|
Three Months Ended September 30, 2017
|
||||||||||||||||||||||||||||||
|
IAB
|
|
Arlington Bank
|
|
Ameriana
|
|
C Financial
|
|
Community
|
|
CFS
|
|
SCB
|
|
Total
|
||||||||||||||||
Beginning balance
|
|
|
|
$
|
667
|
|
|
$
|
671
|
|
|
$
|
63
|
|
|
$
|
890
|
|
|
$
|
81
|
|
|
$
|
235
|
|
|
$
|
2,607
|
|
|
Additions
|
$
|
941
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
941
|
|
|||||||
Accretion
|
|
|
|
(38
|
)
|
|
(156
|
)
|
|
(134
|
)
|
|
(11
|
)
|
|
(166
|
)
|
|
(181
|
)
|
|
(686
|
)
|
||||||||
Reclassification from nonaccretable
|
|
|
|
26
|
|
|
23
|
|
|
71
|
|
|
|
|
|
170
|
|
|
159
|
|
|
449
|
|
||||||||
Disposals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ending balance
|
$
|
941
|
|
|
$
|
655
|
|
|
$
|
538
|
|
|
|
|
|
$
|
879
|
|
|
$
|
85
|
|
|
$
|
213
|
|
|
$
|
3,311
|
|
|
Nine Months Ended September 30, 2017
|
||||||||||||||||||||||||||||||
|
IAB
|
|
Arlington Bank
|
|
Ameriana
|
|
C Financial
|
|
Community
|
|
CFS
|
|
SCB
|
|
Total
|
||||||||||||||||
Beginning balance
|
|
|
|
|
|
|
$
|
1,630
|
|
|
$
|
73
|
|
|
$
|
1,233
|
|
|
$
|
736
|
|
|
$
|
279
|
|
|
$
|
3,951
|
|
||
Additions
|
$
|
941
|
|
|
$
|
667
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,608
|
|
||||||
Accretion
|
|
|
|
(38
|
)
|
|
(2,814
|
)
|
|
(222
|
)
|
|
(444
|
)
|
|
(1,053
|
)
|
|
(511
|
)
|
|
(5,082
|
)
|
||||||||
Reclassification from nonaccretable
|
|
|
|
26
|
|
|
1,722
|
|
|
149
|
|
|
212
|
|
|
947
|
|
|
445
|
|
|
3,501
|
|
||||||||
Disposals
|
|
|
|
|
|
|
|
|
|
|
|
|
(122
|
)
|
|
(545
|
)
|
|
|
|
|
(667
|
)
|
||||||||
Ending balance
|
$
|
941
|
|
|
$
|
655
|
|
|
$
|
538
|
|
|
|
|
|
$
|
879
|
|
|
$
|
85
|
|
|
$
|
213
|
|
|
$
|
3,311
|
|
|
Three Months Ended September 30, 2016
|
||||||||||||||||||||||
|
Ameriana
|
|
C Financial
|
|
Community
|
|
CFS
|
|
SCB
|
|
Total
|
||||||||||||
Beginning balance
|
$
|
1,846
|
|
|
$
|
81
|
|
|
$
|
1,345
|
|
|
$
|
904
|
|
|
$
|
451
|
|
|
$
|
4,627
|
|
Additions
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accretion
|
(67
|
)
|
|
(18
|
)
|
|
(63
|
)
|
|
(665
|
)
|
|
(199
|
)
|
|
(1,012
|
)
|
||||||
Reclassification from nonaccretable
|
4
|
|
|
15
|
|
|
22
|
|
|
585
|
|
|
72
|
|
|
698
|
|
||||||
Disposals
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Ending balance
|
$
|
1,783
|
|
|
$
|
78
|
|
|
$
|
1,304
|
|
|
$
|
824
|
|
|
$
|
324
|
|
|
$
|
4,313
|
|
|
Nine Months Ended September 30, 2016
|
||||||||||||||||||||||
|
Ameriana
|
|
C Financial
|
|
Community
|
|
CFS
|
|
SCB
|
|
Total
|
||||||||||||
Beginning balance
|
$
|
2,160
|
|
|
$
|
114
|
|
|
$
|
1,508
|
|
|
$
|
1,188
|
|
|
$
|
642
|
|
|
$
|
5,612
|
|
Additions
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accretion
|
(154
|
)
|
|
(104
|
)
|
|
(975
|
)
|
|
(2,810
|
)
|
|
(580
|
)
|
|
(4,623
|
)
|
||||||
Reclassification from nonaccretable
|
9
|
|
|
68
|
|
|
771
|
|
|
2,457
|
|
|
262
|
|
|
3,567
|
|
||||||
Disposals
|
(232
|
)
|
|
|
|
|
|
(11
|
)
|
|
|
|
(243
|
)
|
|||||||||
Ending balance
|
$
|
1,783
|
|
|
$
|
78
|
|
|
$
|
1,304
|
|
|
$
|
824
|
|
|
$
|
324
|
|
|
$
|
4,313
|
|
|
IAB
|
|
Arlington Bank
|
||||
Contractually required payments receivable at acquisition date
|
$
|
14,131
|
|
|
$
|
6,183
|
|
Nonaccretable difference
|
8,352
|
|
|
2,891
|
|
||
Expected cash flows at acquisition date
|
5,779
|
|
|
3,292
|
|
||
Accretable difference
|
941
|
|
|
667
|
|
||
Basis in loans at acquisition date
|
$
|
4,838
|
|
|
$
|
2,625
|
|
|
2017
|
||
Balance, January 1
|
$
|
244,000
|
|
Goodwill acquired
|
201,824
|
|
|
Measurement period adjustment
|
(469
|
)
|
|
Balance, September 30
|
$
|
445,355
|
|
|
2016
|
||
Balance, January 1
|
$
|
243,129
|
|
Measurement period adjustment
|
871
|
|
|
Balance, December 31
|
$
|
244,000
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Gross carrying amount
|
$
|
63,940
|
|
|
$
|
61,798
|
|
Core deposit intangibles acquired
|
18,164
|
|
|
|
|||
Other intangibles acquired
|
3,765
|
|
|
|
|||
Measurement period adjustment
|
|
|
2,142
|
|
|||
Accumulated amortization
|
(52,666
|
)
|
|
(49,074
|
)
|
||
Total other intangibles
|
$
|
33,203
|
|
|
$
|
14,866
|
|
|
Amortization Expense
|
||
2017
|
$
|
2,055
|
|
2018
|
6,719
|
|
|
2019
|
5,169
|
|
|
2020
|
3,632
|
|
|
2021
|
3,427
|
|
|
After 2021
|
12,201
|
|
|
|
$
|
33,203
|
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||||||||||||||
|
September 30, 2017
|
|
December 31, 2016
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||||||
|
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
|
|
$
|
1
|
|
|
Other Assets
|
|
$
|
15
|
|
|
Other Liabilities
|
|
$
|
1,934
|
|
|
Other Liabilities
|
|
$
|
2,182
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
Other Assets
|
|
$
|
7,060
|
|
|
Other Assets
|
|
$
|
6,295
|
|
|
Other Liabilities
|
|
$
|
7,060
|
|
|
Other Liabilities
|
|
$
|
6,295
|
|
Derivatives in Cash Flow Hedging Relationships
|
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative
(Effective Portion) |
||||||||||||||
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
September 30, 2017
|
|
September 30, 2016
|
|
September 30, 2017
|
|
September 30, 2016
|
|||||||||
Interest Rate Products
|
$
|
(10
|
)
|
|
$
|
384
|
|
|
$
|
(380
|
)
|
|
$
|
(2,383
|
)
|
Derivatives Not Designated as
Hedging Instruments under FASB ASC 815-10 |
|
Location of Gain (Loss)
Recognized Income on Derivative |
|
Amount of Gain (Loss) Recognized in Income on Derivative
|
||||
|
|
Three Months Ended
September 30, 2017 |
|
Three Months Ended
September 30, 2016 |
||||
Interest rate contracts
|
|
Other income
|
|
|
|
$
|
211
|
|
Derivatives Not Designated as
Hedging Instruments under FASB ASC 815-10 |
|
Location of Gain (Loss)
Recognized Income on Derivative |
|
Amount of Gain (Loss) Recognized in Income on Derivative
|
||||
|
Nine Months Ended
September 30, 2017 |
|
Nine Months Ended
September 30, 2016 |
|||||
Interest rate contracts
|
|
Other income
|
|
|
|
$
|
698
|
|
Derivatives Designated as
Hedging Instruments under FASB ASC 815-10 |
|
Location of Gain (Loss)
Recognized Income on Derivative |
|
Amount of Gain (Loss) Reclassed from Other Comprehensive Income into Income (Effective Portion)
|
||||||
|
|
Three Months Ended
September 30, 2017 |
|
Three Months Ended
September 30, 2016 |
||||||
Interest rate contracts
|
|
Interest Expense
|
|
$
|
(240
|
)
|
|
$
|
(317
|
)
|
Derivatives Designated as
Hedging Instruments under FASB ASC 815-10 |
|
Location of Gain (Loss)
Recognized Income on Derivative |
|
Amount of Gain (Loss) Reclassed from Other Comprehensive Income into Income (Effective Portion)
|
||||||
|
|
Nine Months Ended
September 30, 2017 |
|
Nine Months Ended
September 30, 2016 |
||||||
Interest rate contracts
|
|
Interest Expense
|
|
$
|
(759
|
)
|
|
$
|
(959
|
)
|
|
|
|
Fair Value Measurements Using:
|
||||||||||||
September 30, 2017
|
Fair Value
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
|
Significant Other
Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
||||||||
Available for sale securities:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
$
|
250
|
|
|
$
|
250
|
|
|
|
|
|
|
|||
State and municipal
|
464,408
|
|
|
|
|
$
|
460,456
|
|
|
$
|
3,952
|
|
|||
U.S. Government-sponsored mortgage-backed securities
|
423,675
|
|
|
|
|
423,675
|
|
|
|
||||||
Corporate obligations
|
31
|
|
|
|
|
|
|
31
|
|
||||||
Equity securities
|
2,357
|
|
|
|
|
2,353
|
|
|
4
|
|
|||||
Interest rate swap asset
|
7,060
|
|
|
|
|
7,060
|
|
|
|
||||||
Interest rate cap
|
1
|
|
|
|
|
1
|
|
|
|
||||||
Interest rate swap liability
|
8,994
|
|
|
|
|
8,994
|
|
|
|
|
Available for Sale Securities
|
||||||||||||||
|
Three Months Ended
|
|
Nine Months ended
|
||||||||||||
|
September 30, 2017
|
|
September 30, 2016
|
|
September 30, 2017
|
|
September 30, 2016
|
||||||||
Balance at beginning of the period
|
$
|
3,330
|
|
|
$
|
5,564
|
|
|
$
|
5,169
|
|
|
$
|
5,932
|
|
Included in other comprehensive income
|
(22
|
)
|
|
(45
|
)
|
|
38
|
|
|
52
|
|
||||
Principal payments
|
679
|
|
|
(77
|
)
|
|
(1,220
|
)
|
|
(542
|
)
|
||||
Ending balance
|
$
|
3,987
|
|
|
$
|
5,442
|
|
|
$
|
3,987
|
|
|
$
|
5,442
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements Using
|
||||||||
September 30, 2017
|
|
Fair Value
|
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant Other
Observable Inputs (Level 2) |
|
Significant Unobservable
Inputs (Level 3) |
||||
Impaired loans (collateral dependent)
|
|
$
|
8,045
|
|
|
|
|
|
|
$
|
8,045
|
|
Other real estate owned
|
|
1,818
|
|
|
|
|
|
|
1,818
|
|
|
|
|
|
Fair Value Measurements Using
|
||||||||
December 31, 2016
|
|
Fair Value
|
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant Other
Observable Inputs (Level 2) |
|
Significant Unobservable
Inputs (Level 3) |
||||
Impaired loans (collateral dependent)
|
|
$
|
15,318
|
|
|
|
|
|
|
$
|
15,318
|
|
Other real estate owned
|
|
1,612
|
|
|
|
|
|
|
1,612
|
|
September 30, 2017
|
Fair Value
|
|
Valuation Technique
|
|
Unobservable Inputs
|
|
Range (Weighted-Average)
|
||
State and municipal securities
|
$
|
3,952
|
|
|
Discounted cash flow
|
|
Maturity/Call date
|
|
1 month to 20 yrs
|
|
|
|
|
|
US Muni BQ curve
|
|
A- to BBB-
|
||
|
|
|
|
|
Discount rate
|
|
.69% - 5%
|
||
|
|
|
|
|
|
|
|
||
Corporate obligations and Equity securities
|
$
|
35
|
|
|
Discounted cash flow
|
|
Risk free rate
|
|
3 month LIBOR
|
|
|
|
|
|
plus premium for illiquidity
|
|
plus 200bps
|
||
|
|
|
|
|
|
|
|
||
Impaired loans (collateral dependent)
|
$
|
8,045
|
|
|
Collateral based measurements
|
|
Discount to reflect current market conditions and ultimate collectability
|
|
0% - 10% (1%)
|
|
|
|
|
|
|
|
|
||
Other real estate owned
|
$
|
1,818
|
|
|
Appraisals
|
|
Discount to reflect current market conditions
|
|
0% - 15% (4%)
|
December 31, 2016
|
Fair Value
|
|
Valuation Technique
|
|
Unobservable Inputs
|
|
Range (Weighted-Average)
|
||
State and municipal securities
|
$
|
5,134
|
|
|
Discounted cash flow
|
|
Maturity/Call date
|
|
1 month to 20 yrs
|
|
|
|
|
|
US Muni BQ curve
|
|
A- to BBB-
|
||
|
|
|
|
|
Discount rate
|
|
.69% - 5%
|
||
|
|
|
|
|
|
|
|
||
Corporate obligations and Equity securities
|
$
|
35
|
|
|
Discounted cash flow
|
|
Risk free rate
|
|
3 month LIBOR
|
|
|
|
|
|
plus premium for illiquidity
|
|
plus 200bps
|
||
|
|
|
|
|
|
|
|
||
Impaired loans (collateral dependent)
|
$
|
15,318
|
|
|
Collateral based measurements
|
|
Discount to reflect current market conditions and ultimate collectability
|
|
0% - 10% (1%)
|
|
|
|
|
|
|
|
|
||
Other real estate owned
|
$
|
1,612
|
|
|
Appraisals
|
|
Discount to reflect current market conditions
|
|
0% - 10% (9%)
|
|
|
|
September 30, 2017
|
|
|
||||||||||
|
|
|
Quoted Prices in Active Markets
for Identical Assets |
|
Significant
Other Observable Inputs |
|
Significant Unobservable
Inputs |
||||||||
|
Carrying Amount
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
146,607
|
|
|
$
|
146,607
|
|
|
|
|
|
||||
Interest-bearing time deposits
|
72,950
|
|
|
72,950
|
|
|
|
|
|
||||||
Investment securities available for sale
|
890,721
|
|
|
250
|
|
|
$
|
886,484
|
|
|
$
|
3,987
|
|
||
Investment securities held to maturity
|
578,166
|
|
|
|
|
574,698
|
|
|
12,572
|
|
|||||
Loans held for sale
|
4,514
|
|
|
|
|
4,514
|
|
|
|
||||||
Loans
|
6,410,094
|
|
|
|
|
|
|
6,301,582
|
|
||||||
Federal Home Loan Bank stock
|
23,825
|
|
|
|
|
23,825
|
|
|
|
||||||
Interest rate swap and cap asset
|
7,061
|
|
|
|
|
7,061
|
|
|
|
||||||
Interest receivable
|
32,366
|
|
|
|
|
32,366
|
|
|
|
||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Deposits
|
$
|
6,911,019
|
|
|
$
|
5,447,422
|
|
|
$
|
1,445,246
|
|
|
|
||
Borrowings:
|
|
|
|
|
|
|
|
||||||||
Federal funds purchased
|
100,000
|
|
|
|
|
100,000
|
|
|
|
||||||
Securities sold under repurchase agreements
|
142,107
|
|
|
|
|
142,060
|
|
|
|
||||||
Federal Home Loan Bank advances
|
406,820
|
|
|
|
|
407,708
|
|
|
|
||||||
Subordinated debentures and term loans
|
139,686
|
|
|
|
|
114,435
|
|
|
|
||||||
Interest rate swap liability
|
8,994
|
|
|
|
|
8,994
|
|
|
|
||||||
Interest payable
|
4,956
|
|
|
|
|
4,956
|
|
|
|
|
|
|
December 31, 2016
|
|
|
||||||||||
|
|
|
Quoted Prices in Active Markets
for Identical Assets |
|
Significant
Other Observable Inputs |
|
Significant Unobservable
Inputs |
||||||||
|
Carrying Amount
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
127,927
|
|
|
$
|
127,927
|
|
|
|
|
|
||||
Interest-bearing time deposits
|
24,459
|
|
|
24,459
|
|
|
|
|
|
||||||
Investment securities available for sale
|
696,862
|
|
|
18,765
|
|
|
$
|
672,928
|
|
|
$
|
5,169
|
|
||
Investment securities held to maturity
|
607,643
|
|
|
|
|
597,246
|
|
|
14,687
|
|
|||||
Loans held for sale
|
2,929
|
|
|
|
|
2,929
|
|
|
|
||||||
Loans
|
5,073,608
|
|
|
|
|
|
|
4,933,552
|
|
||||||
Federal Home Loan Bank stock
|
17,964
|
|
|
|
|
17,964
|
|
|
|
||||||
Interest rate swap and cap asset
|
6,310
|
|
|
|
|
6,310
|
|
|
|
|
|||||
Interest receivable
|
26,194
|
|
|
|
|
26,194
|
|
|
|
||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Deposits
|
$
|
5,556,498
|
|
|
$
|
4,427,605
|
|
|
$
|
1,111,491
|
|
|
|
||
Borrowings:
|
|
|
|
|
|
|
|
||||||||
Federal funds purchased
|
120,349
|
|
|
|
|
120,349
|
|
|
|
||||||
Securities sold under repurchase agreements
|
146,480
|
|
|
|
|
146,449
|
|
|
|
||||||
Federal Home Loan Bank advances
|
298,923
|
|
|
|
|
297,465
|
|
|
|
||||||
Subordinated debentures and term loans
|
128,445
|
|
|
|
|
105,930
|
|
|
|
|
|||||
Interest rate swap liability
|
8,477
|
|
|
|
|
8,477
|
|
|
|
||||||
Interest payable
|
3,110
|
|
|
|
|
3,110
|
|
|
|
|
September 30, 2017
|
||||||||||||||||||
|
Remaining Contractual Maturity of the Agreements
|
||||||||||||||||||
|
Overnight and Continuous
|
|
Up to 30 Days
|
|
30-90 Days
|
|
Greater Than 90 Days
|
|
Total
|
||||||||||
U.S. Government-sponsored mortgage-backed securities
|
$
|
129,128
|
|
|
$
|
1,339
|
|
|
$
|
2,544
|
|
|
$
|
9,096
|
|
|
$
|
142,107
|
|
|
December 31, 2016
|
||||||||||||||||||
|
Remaining Contractual Maturity of the Agreements
|
||||||||||||||||||
|
Overnight and Continuous
|
|
Up to 30 Days
|
|
30-90 Days
|
|
Greater Than 90 Days
|
|
Total
|
||||||||||
U.S. Government-sponsored mortgage-backed securities
|
$
|
129,617
|
|
|
$
|
1,337
|
|
|
$
|
10,253
|
|
|
$
|
5,273
|
|
|
$
|
146,480
|
|
|
Accumulated Other Comprehensive Income (Loss)
|
||||||||||||||
|
Unrealized Gains (Losses) on Securities Available for Sale
|
|
Unrealized Gains (Losses) on Cash Flow Hedges
|
|
Unrealized Gains (Losses) on Defined Benefit Plans
|
|
Total
|
||||||||
Balance at December 31, 2016
|
$
|
1,035
|
|
|
$
|
(1,774
|
)
|
|
$
|
(12,842
|
)
|
|
$
|
(13,581
|
)
|
Other comprehensive income before reclassifications
|
8,124
|
|
|
(246
|
)
|
|
|
|
|
7,878
|
|
||||
Amounts reclassified from accumulated other comprehensive income
|
(973
|
)
|
|
493
|
|
|
(175
|
)
|
|
(655
|
)
|
||||
Period change
|
7,151
|
|
|
247
|
|
|
(175
|
)
|
|
7,223
|
|
||||
Balance at September 30, 2017
|
$
|
8,186
|
|
|
$
|
(1,527
|
)
|
|
$
|
(13,017
|
)
|
|
$
|
(6,358
|
)
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Balance at December 31, 2015
|
$
|
12,325
|
|
|
$
|
(2,347
|
)
|
|
$
|
(11,340
|
)
|
|
$
|
(1,362
|
)
|
Other comprehensive income before reclassifications
|
7,863
|
|
|
(1,548
|
)
|
|
|
|
|
6,315
|
|
||||
Amounts reclassified from accumulated other comprehensive income
|
(1,652
|
)
|
|
623
|
|
|
|
|
|
(1,029
|
)
|
||||
Period change
|
6,211
|
|
|
(925
|
)
|
|
—
|
|
|
5,286
|
|
||||
Balance at September 30, 2016
|
$
|
18,536
|
|
|
$
|
(3,272
|
)
|
|
$
|
(11,340
|
)
|
|
$
|
3,924
|
|
|
|
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Three Months Ended September 30,
|
|
|
||||||
Details about Accumulated Other Comprehensive Income (Loss)Components
|
|
2017
|
|
2016
|
|
Affected Line Item in the Statements of Income
|
||||
Unrealized gains (losses) on available for sale securities
(1)
|
|
|
|
|
|
|
||||
Realized securities gains reclassified into income
|
|
$
|
332
|
|
|
$
|
839
|
|
|
Other income - net realized gains on sales of available for sale securities
|
Related income tax expense
|
|
(116
|
)
|
|
(294
|
)
|
|
Income tax expense
|
||
|
|
$
|
216
|
|
|
$
|
545
|
|
|
|
|
|
|
|
|
|
|
||||
Unrealized gains (losses) on cash flow hedges
(2)
|
|
|
|
|
|
|
||||
Interest rate contracts
|
|
$
|
(240
|
)
|
|
$
|
(317
|
)
|
|
Interest expense - subordinated debentures and term loans
|
Related income tax benefit
|
|
84
|
|
|
111
|
|
|
Income tax expense
|
||
|
|
$
|
(156
|
)
|
|
$
|
(206
|
)
|
|
|
|
|
|
|
|
|
|
||||
Unrealized gains (losses) on defined benefit plans
|
|
|
|
|
|
|
||||
Amortization of prior service costs
|
|
$
|
89
|
|
|
|
|
|
Other expenses - salaries and employee benefits
|
|
Related income tax expense
|
|
(31
|
)
|
|
|
|
|
Income tax expense
|
||
|
|
$
|
58
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||
Total reclassifications for the period, net of tax
|
|
$
|
118
|
|
|
$
|
339
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Nine Months Ended September 30,
|
|
|
||||||
Details about Accumulated Other Comprehensive Income (Loss)Components
|
|
2017
|
|
2016
|
|
Affected Line Item in the Statements of Income
|
||||
Unrealized gains (losses) on available for sale securities
(1)
|
|
|
|
|
|
|
||||
Realized securities gains reclassified into income
|
|
$
|
1,497
|
|
|
$
|
2,542
|
|
|
Other income - net realized gains on sales of available for sale securities
|
Related income tax expense
|
|
(524
|
)
|
|
(890
|
)
|
|
Income tax expense
|
||
|
|
$
|
973
|
|
|
$
|
1,652
|
|
|
|
|
|
|
|
|
|
|
||||
Unrealized gains (losses) on cash flow hedges
(2)
|
|
|
|
|
|
|
||||
Interest rate contracts
|
|
$
|
(759
|
)
|
|
$
|
(959
|
)
|
|
Interest expense - subordinated debentures and term loans
|
Related income tax benefit
|
|
266
|
|
|
336
|
|
|
Income tax expense
|
||
|
|
$
|
(493
|
)
|
|
$
|
(623
|
)
|
|
|
|
|
|
|
|
|
|
||||
Unrealized gains (losses) on defined benefit plans
|
|
|
|
|
|
|
||||
Amortization of net loss and prior service costs
|
|
$
|
269
|
|
|
|
|
|
Other expenses - salaries and employee benefits
|
|
Related income tax expense
|
|
(94
|
)
|
|
|
|
|
Income tax expense
|
||
|
|
$
|
175
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||
Total reclassifications for the period, net of tax
|
|
$
|
655
|
|
|
$
|
1,029
|
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Stock and ESPP Options
|
|
|
|
|
|
|
|
||||||||
Pre-tax compensation expense
|
$
|
23
|
|
|
$
|
18
|
|
|
$
|
93
|
|
|
$
|
54
|
|
Income tax expense (benefit)
|
(9
|
)
|
|
3
|
|
|
(313
|
)
|
|
12
|
|
||||
Stock and ESPP option expense, net of income taxes
|
$
|
14
|
|
|
$
|
21
|
|
|
$
|
(220
|
)
|
|
$
|
66
|
|
Restricted Stock Awards
|
|
|
|
|
|
|
|
||||||||
Pre-tax compensation expense
|
$
|
800
|
|
|
$
|
630
|
|
|
$
|
1,791
|
|
|
$
|
1,829
|
|
Income tax benefit
|
(280
|
)
|
|
(221
|
)
|
|
(1,160
|
)
|
|
(640
|
)
|
||||
Restricted stock awards expense, net of income taxes
|
$
|
520
|
|
|
$
|
409
|
|
|
$
|
631
|
|
|
$
|
1,189
|
|
Total Share-Based Compensation
|
|
|
|
|
|
|
|
||||||||
Pre-tax compensation expense
|
$
|
823
|
|
|
$
|
648
|
|
|
$
|
1,884
|
|
|
$
|
1,883
|
|
Income tax benefit
|
(289
|
)
|
|
(218
|
)
|
|
(1,473
|
)
|
|
(628
|
)
|
||||
Total share-based compensation expense, net of income taxes
|
$
|
534
|
|
|
$
|
430
|
|
|
$
|
411
|
|
|
$
|
1,255
|
|
|
Number of
Shares |
|
Weighted-Average Exercise Price
|
|
Weighted Average Remaining
Contractual Term (in Years) |
|
Aggregate
Intrinsic Value |
|||||
Outstanding at January 1,
2017
|
260,211
|
|
|
$
|
19.26
|
|
|
|
|
|
||
Granted
|
|
|
|
|
|
|
|
|
|
|||
Exercised
|
(101,759
|
)
|
|
$
|
22.83
|
|
|
|
|
|
||
Canceled
|
|
|
|
|
|
|
|
|
|
|||
Outstanding
September 30, 2017
|
158,452
|
|
|
$
|
16.96
|
|
|
2.55
|
|
$
|
4,114,422
|
|
Vested and Expected to Vest at
September 30, 2017
|
158,452
|
|
|
$
|
16.96
|
|
|
2.55
|
|
$
|
4,114,422
|
|
Exercisable at
September 30, 2017
|
158,452
|
|
|
$
|
16.96
|
|
|
2.55
|
|
$
|
4,114,422
|
|
|
Number of Shares
|
|
Weighted-Average
Grant Date Fair Value |
|||
Unvested RSAs at January 1,
2017
|
328,347
|
|
|
$
|
22.87
|
|
Granted
|
127,757
|
|
|
$
|
40.41
|
|
Vested
|
(84,795
|
)
|
|
$
|
20.45
|
|
Forfeited
|
(4,220
|
)
|
|
$
|
23.11
|
|
Unvested RSAs at
September 30, 2017
|
367,089
|
|
|
$
|
29.53
|
|
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||||||||
|
2017
|
|
2016
|
2017
|
|
2016
|
||||||||
Reconciliation of Federal Statutory to Actual Tax Expense:
|
|
|
|
|
|
|
||||||||
Federal statutory income tax at 35%
|
$
|
11,304
|
|
|
$
|
9,985
|
|
$
|
32,900
|
|
|
$
|
27,481
|
|
Tax-exempt interest income
|
(2,881
|
)
|
|
(2,198
|
)
|
(8,062
|
)
|
|
(6,328
|
)
|
||||
Share-based compensation
|
(78
|
)
|
|
(29
|
)
|
(862
|
)
|
|
(10
|
)
|
||||
Tax-exempt earnings and gains on life insurance
|
(551
|
)
|
|
(216
|
)
|
(1,905
|
)
|
|
(1,186
|
)
|
||||
Tax credits
|
(132
|
)
|
|
(165
|
)
|
(396
|
)
|
|
(423
|
)
|
||||
Other
|
277
|
|
|
92
|
|
639
|
|
|
225
|
|
||||
Actual Tax Expense
|
$
|
7,939
|
|
|
$
|
7,469
|
|
$
|
22,314
|
|
|
$
|
19,759
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Effective Tax Rate
|
24.6
|
%
|
|
26.2
|
%
|
23.7
|
%
|
|
25.2
|
%
|
|
Three Months Ended September 30,
|
||||||||||||||||||||
|
2017
|
|
2016
|
||||||||||||||||||
|
Net Income
|
|
Weighted-Average Shares
|
|
Per Share
Amount |
|
Net Income
|
|
Weighted-Average Shares
|
|
Per Share
Amount |
||||||||||
Net income available to common stockholders
|
$
|
24,358
|
|
|
48,431,880
|
|
|
$
|
0.50
|
|
|
$
|
21,059
|
|
|
40,779,423
|
|
|
$
|
0.51
|
|
Effect of potentially dilutive stock options and restricted stock awards
|
|
|
211,894
|
|
|
|
|
|
|
246,361
|
|
|
|
||||||||
Diluted net income per share
|
$
|
24,358
|
|
|
48,643,774
|
|
|
$
|
0.50
|
|
|
$
|
21,059
|
|
|
41,025,784
|
|
|
$
|
0.51
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||
|
2017
|
|
2016
|
||||||||||||||||||
|
Net Income
|
|
Weighted-Average Shares
|
|
Per Share
Amount |
|
Net Income
|
|
Weighted-Average Shares
|
|
Per Share
Amount |
||||||||||
Net income available to common stockholders
|
$
|
71,687
|
|
|
43,845,675
|
|
|
$
|
1.64
|
|
|
$
|
58,758
|
|
|
40,740,714
|
|
|
$
|
1.44
|
|
Effect of potentially dilutive stock options and restricted stock awards
|
|
|
217,544
|
|
|
|
|
|
|
229,501
|
|
|
|
||||||||
Diluted net income per share
|
$
|
71,687
|
|
|
44,063,219
|
|
|
$
|
1.63
|
|
|
$
|
58,758
|
|
|
40,970,215
|
|
|
$
|
1.43
|
|
•
|
A lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and
|
•
|
A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term.
|
•
|
Requiring equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income;
|
•
|
Requiring public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes;
|
•
|
Requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements;
|
•
|
Eliminating the requirement to disclose the fair value of financial instruments measured at amortized cost for organizations that are not public business entities;
|
•
|
Eliminating the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; and
|
•
|
Requiring a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments.
|
•
|
statements of our goals, intentions and expectations;
|
•
|
statements regarding our business plan and growth strategies;
|
•
|
statements regarding the asset quality of our loan and investment portfolios; and
|
•
|
estimates of our risks and future costs and benefits.
|
•
|
fluctuations in market rates of interest and loan and deposit pricing, which could negatively affect our net interest margin, asset valuations and expense expectations;
|
•
|
adverse changes in the economy, which might affect our business prospects and could cause credit-related losses and expenses;
|
•
|
adverse developments in our loan and investment portfolios;
|
•
|
competitive factors in the banking industry, such as the trend towards consolidation in our market;
|
•
|
changes in the banking legislation or the regulatory requirements of federal and state agencies applicable to bank holding companies and banks like our affiliate bank;
|
•
|
acquisitions of other businesses by us and integration of such acquired businesses;
|
•
|
changes in market, economic, operational, liquidity, credit and interest rate risks associated with our business; and
|
•
|
the continued availability of earnings and excess capital sufficient for the lawful and prudent declaration and payment of cash dividends.
|
(Dollars in Thousands)
|
Three Months Ended
|
||||||||||||||||||||
|
September 30, 2017
|
|
September 30, 2016
|
||||||||||||||||||
|
Average Balance
|
|
Interest
Income / Expense |
|
Average
Rate |
|
Average Balance
|
|
Interest
Income / Expense |
|
Average
Rate |
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing time deposits
|
$
|
139,905
|
|
|
$
|
284
|
|
|
0.81
|
%
|
|
$
|
54,120
|
|
|
$
|
55
|
|
|
0.40
|
%
|
Federal Reserve and Federal Home Loan Bank stock
|
23,146
|
|
|
242
|
|
|
4.18
|
|
|
18,095
|
|
|
193
|
|
|
4.24
|
|
||||
Investment Securities:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable
|
718,965
|
|
|
4,524
|
|
|
2.52
|
|
|
729,223
|
|
|
3,992
|
|
|
2.18
|
|
||||
Tax-Exempt
(2)
|
645,577
|
|
|
8,392
|
|
|
5.20
|
|
|
559,845
|
|
|
7,182
|
|
|
5.10
|
|
||||
Total Investment Securities
|
1,364,542
|
|
|
12,916
|
|
|
3.79
|
|
|
1,289,068
|
|
|
11,174
|
|
|
3.45
|
|
||||
Loans held for sale
|
8,117
|
|
|
136
|
|
|
6.70
|
|
|
742
|
|
|
73
|
|
|
39.14
|
|
||||
Loans:
(3)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
4,556,653
|
|
|
55,266
|
|
|
4.85
|
|
|
3,556,187
|
|
|
41,653
|
|
|
4.66
|
|
||||
Real Estate Mortgage
|
785,317
|
|
|
8,596
|
|
|
4.38
|
|
|
567,015
|
|
|
6,521
|
|
|
4.58
|
|
||||
Installment
|
595,164
|
|
|
7,494
|
|
|
5.04
|
|
|
493,807
|
|
|
5,572
|
|
|
4.49
|
|
||||
Tax-Exempt
(2)
|
367,559
|
|
|
4,385
|
|
|
4.77
|
|
|
219,172
|
|
|
2,537
|
|
|
4.60
|
|
||||
Total Loans
|
6,312,810
|
|
|
75,877
|
|
|
4.81
|
|
|
4,836,923
|
|
|
56,356
|
|
|
4.64
|
|
||||
Total Earning Assets
|
7,840,403
|
|
|
89,319
|
|
|
4.56
|
|
|
6,198,206
|
|
|
67,778
|
|
|
4.37
|
|
||||
Net unrealized gain on securities available for sale
|
7,733
|
|
|
|
|
|
|
11,738
|
|
|
|
|
|
||||||||
Allowance for loan losses
|
(71,753
|
)
|
|
|
|
|
|
(62,453
|
)
|
|
|
|
|
||||||||
Cash and cash equivalents
|
129,058
|
|
|
|
|
|
|
102,023
|
|
|
|
|
|
||||||||
Premises and equipment
|
101,979
|
|
|
|
|
|
|
95,541
|
|
|
|
|
|
||||||||
Other assets
|
786,246
|
|
|
|
|
|
|
562,248
|
|
|
|
|
|
||||||||
Total Assets
|
$
|
8,793,666
|
|
|
|
|
|
|
$
|
6,907,303
|
|
|
|
|
|
||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing NOW deposits
|
$
|
1,834,965
|
|
|
$
|
1,706
|
|
|
0.37
|
%
|
|
$
|
1,454,992
|
|
|
$
|
669
|
|
|
0.18
|
%
|
Money market deposits
|
990,682
|
|
|
747
|
|
|
0.30
|
|
|
793,173
|
|
|
384
|
|
|
0.19
|
|
||||
Savings deposits
|
887,201
|
|
|
203
|
|
|
0.09
|
|
|
754,401
|
|
|
171
|
|
|
0.09
|
|
||||
Certificates and other time deposits
|
1,450,448
|
|
|
4,054
|
|
|
1.12
|
|
|
1,128,595
|
|
|
2,702
|
|
|
0.95
|
|
||||
Total Interest-bearing Deposits
|
5,163,296
|
|
|
6,710
|
|
|
0.52
|
|
|
4,131,161
|
|
|
3,926
|
|
|
0.38
|
|
||||
Borrowings
|
694,203
|
|
|
3,717
|
|
|
2.14
|
|
|
521,125
|
|
|
2,768
|
|
|
2.11
|
|
||||
Total Interest-bearing Liabilities
|
5,857,499
|
|
|
10,427
|
|
|
0.71
|
|
|
4,652,286
|
|
|
6,694
|
|
|
0.57
|
|
||||
Noninterest-bearing deposits
|
1,626,757
|
|
|
|
|
|
|
1,297,292
|
|
|
|
|
|
||||||||
Other liabilities
|
64,938
|
|
|
|
|
|
|
60,791
|
|
|
|
|
|
||||||||
Total Liabilities
|
7,549,194
|
|
|
|
|
|
|
6,010,369
|
|
|
|
|
|
||||||||
Stockholders' Equity
|
1,244,472
|
|
|
|
|
|
|
896,934
|
|
|
|
|
|
||||||||
Total Liabilities and Stockholders' Equity
|
$
|
8,793,666
|
|
|
10,427
|
|
|
0.53
|
|
|
$
|
6,907,303
|
|
|
6,694
|
|
|
0.43
|
|
||
Net Interest Income
|
|
|
$
|
78,892
|
|
|
|
|
|
|
$
|
61,084
|
|
|
|
||||||
Net Interest Margin
|
|
|
|
|
4.03
|
%
|
|
|
|
|
|
3.94
|
%
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(1)
Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed utilizing a 30/360 day basis.
|
|||||||||||||||||||||
(2)
Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 35 percent for 2017 and 2016. These totals equal $4,472 and $3,402 for the three months ended September 30, 2017 and 2016, respectively.
|
|||||||||||||||||||||
(3)
Non-accruing loans have been included in the average balances.
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in Thousands)
|
Nine Months Ended
|
||||||||||||||||||||
|
September 30, 2017
|
|
September 30, 2016
|
||||||||||||||||||
|
Average Balance
|
|
Interest
Income / Expense |
|
Average
Rate |
|
Average Balance
|
|
Interest
Income / Expense |
|
Average
Rate |
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing time deposits
|
$
|
71,456
|
|
|
$
|
442
|
|
|
0.82
|
%
|
|
$
|
76,440
|
|
|
$
|
283
|
|
|
0.49
|
%
|
Federal Reserve and Federal Home Loan Bank stock
|
19,941
|
|
|
635
|
|
|
4.25
|
|
|
26,359
|
|
|
906
|
|
|
4.59
|
|
||||
Investment Securities:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable
|
716,118
|
|
|
13,012
|
|
|
2.42
|
|
|
725,311
|
|
|
12,522
|
|
|
2.31
|
|
||||
Tax-Exempt
(2)
|
609,658
|
|
|
23,922
|
|
|
5.23
|
|
|
539,996
|
|
|
21,169
|
|
|
5.24
|
|
||||
Total Investment Securities
|
1,325,776
|
|
|
36,934
|
|
|
3.71
|
|
|
1,265,307
|
|
|
33,691
|
|
|
3.56
|
|
||||
Loans held for sale
|
4,875
|
|
|
245
|
|
|
6.70
|
|
|
3,541
|
|
|
291
|
|
|
10.98
|
|
||||
Loans:
(3)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
4,085,901
|
|
|
144,759
|
|
|
4.72
|
|
|
3,502,715
|
|
|
121,017
|
|
|
4.62
|
|
||||
Real Estate Mortgage
|
660,435
|
|
|
21,946
|
|
|
4.43
|
|
|
570,330
|
|
|
19,032
|
|
|
4.46
|
|
||||
Installment
|
558,106
|
|
|
20,284
|
|
|
4.85
|
|
|
473,645
|
|
|
16,067
|
|
|
4.53
|
|
||||
Tax-Exempt
(2)
|
338,169
|
|
|
11,809
|
|
|
4.66
|
|
|
198,615
|
|
|
6,814
|
|
|
4.58
|
|
||||
Total Loans
|
5,647,486
|
|
|
199,043
|
|
|
4.70
|
|
|
4,748,846
|
|
|
163,221
|
|
|
4.59
|
|
||||
Total Earning Assets
|
7,064,659
|
|
|
237,054
|
|
|
4.47
|
%
|
|
6,116,952
|
|
|
198,101
|
|
|
4.32
|
%
|
||||
Net unrealized gain on securities available for sale
|
4,437
|
|
|
|
|
|
|
10,892
|
|
|
|
|
|
||||||||
Allowance for loan losses
|
(69,269
|
)
|
|
|
|
|
|
(62,633
|
)
|
|
|
|
|
||||||||
Cash and cash equivalents
|
128,866
|
|
|
|
|
|
|
102,767
|
|
|
|
|
|
||||||||
Premises and equipment
|
95,707
|
|
|
|
|
|
|
96,284
|
|
|
|
|
|
||||||||
Other assets
|
642,243
|
|
|
|
|
|
|
572,150
|
|
|
|
|
|
||||||||
Total Assets
|
$
|
7,866,643
|
|
|
|
|
|
|
$
|
6,836,412
|
|
|
|
|
|
||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing NOW deposits
|
$
|
1,649,175
|
|
|
$
|
3,632
|
|
|
0.29
|
%
|
|
$
|
1,395,036
|
|
|
$
|
1,850
|
|
|
0.18
|
%
|
Money market deposits
|
894,450
|
|
|
1,688
|
|
|
0.25
|
|
|
835,968
|
|
|
1,377
|
|
|
0.22
|
|
||||
Savings deposits
|
818,800
|
|
|
520
|
|
|
0.08
|
|
|
720,375
|
|
|
455
|
|
|
0.08
|
|
||||
Certificates and other time deposits
|
1,299,932
|
|
|
10,131
|
|
|
1.04
|
|
|
1,157,992
|
|
|
8,346
|
|
|
0.96
|
|
||||
Total Interest-bearing Deposits
|
4,662,357
|
|
|
15,971
|
|
|
0.46
|
|
|
4,109,371
|
|
|
12,028
|
|
|
0.39
|
|
||||
Borrowings
|
659,260
|
|
|
10,058
|
|
|
2.03
|
|
|
506,077
|
|
|
8,180
|
|
|
2.16
|
|
||||
Total Interest-bearing Liabilities
|
5,321,617
|
|
|
26,029
|
|
|
0.65
|
|
|
4,615,448
|
|
|
20,208
|
|
|
0.58
|
|
||||
Noninterest-bearing deposits
|
1,445,685
|
|
|
|
|
|
|
1,279,404
|
|
|
|
|
|
||||||||
Other liabilities
|
50,921
|
|
|
|
|
|
|
63,258
|
|
|
|
|
|
||||||||
Total Liabilities
|
6,818,223
|
|
|
|
|
|
|
5,958,110
|
|
|
|
|
|
||||||||
Stockholders' Equity
|
1,048,420
|
|
|
|
|
|
|
878,302
|
|
|
|
|
|
||||||||
Total Liabilities and Stockholders' Equity
|
$
|
7,866,643
|
|
|
26,029
|
|
|
0.49
|
|
|
$
|
6,836,412
|
|
|
20,208
|
|
|
0.44
|
|
||
Net Interest Income
|
|
|
$
|
211,025
|
|
|
|
|
|
|
$
|
177,893
|
|
|
|
||||||
Net Interest Margin
|
|
|
|
|
3.98
|
%
|
|
|
|
|
|
3.88
|
%
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(1)
Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed utilizing a 30/360 day basis.
|
|||||||||||||||||||||
(2)
Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 35 percent for 2017 and 2016. These totals equal $12,506 and $9,794 for the nine months ended September 30, 2017 and 2016, respectively.
|
|||||||||||||||||||||
(3)
Non-accruing loans have been included in the average balances.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prompt Corrective Action Thresholds
|
|||||||||||||||||
|
Actual
|
|
Adequately Capitalized
|
|
Well Capitalized
|
|||||||||||||||
September 30, 2017
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
Total risk-based capital to risk-weighted assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
First Merchants Corporation
|
$
|
1,031,491
|
|
|
13.76
|
%
|
|
$
|
599,786
|
|
|
8.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
First Merchants Bank
|
999,634
|
|
|
13.22
|
|
|
604,876
|
|
|
8.00
|
|
|
$
|
756,095
|
|
|
10.00
|
%
|
||
Tier 1 capital to risk-weighted assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
First Merchants Corporation
|
$
|
893,137
|
|
|
11.91
|
%
|
|
$
|
449,839
|
|
|
6.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
First Merchants Bank
|
926,280
|
|
|
12.25
|
|
|
453,657
|
|
|
6.00
|
|
|
$
|
604,876
|
|
|
8.00
|
%
|
||
CET1 capital to risk-weighted assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
First Merchants Corporation
|
$
|
827,273
|
|
|
11.03
|
%
|
|
$
|
337,379
|
|
|
4.50
|
%
|
|
N/A
|
|
|
N/A
|
|
|
First Merchants Bank
|
926,280
|
|
|
12.25
|
|
|
340,243
|
|
|
4.50
|
|
|
$
|
491,461
|
|
|
6.50
|
%
|
||
Tier 1 capital to average assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
First Merchants Corporation
|
$
|
893,137
|
|
|
10.72
|
%
|
|
$
|
333,263
|
|
|
4.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
First Merchants Bank
|
926,280
|
|
|
11.10
|
|
|
333,764
|
|
|
4.00
|
|
|
$
|
417,206
|
|
|
5.00
|
%
|
|
|
|
Prompt Corrective Action Thresholds
|
|||||||||||||||||
|
Actual
|
|
Adequately Capitalized
|
|
Well Capitalized
|
|||||||||||||||
December 31, 2016
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
Total risk-based capital to risk-weighted assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
First Merchants Corporation
|
$
|
851,521
|
|
|
14.21
|
%
|
|
$
|
479,470
|
|
|
8.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
First Merchants Bank
|
800,598
|
|
|
13.30
|
|
|
481,490
|
|
|
8.00
|
|
|
$
|
601,862
|
|
|
10.00
|
%
|
||
Tier 1 capital to risk weighted assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
First Merchants Corporation
|
$
|
720,484
|
|
|
12.02
|
%
|
|
$
|
359,603
|
|
|
6.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
First Merchants Bank
|
734,561
|
|
|
12.20
|
|
|
361,117
|
|
|
6.00
|
|
|
$
|
481,490
|
|
|
8.00
|
%
|
||
CET1 capital to risk-weighted assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
First Merchants Corporation
|
$
|
665,445
|
|
|
11.10
|
%
|
|
$
|
269,702
|
|
|
4.50
|
%
|
|
N/A
|
|
|
N/A
|
|
|
First Merchants Bank
|
734,561
|
|
|
12.20
|
|
|
270,838
|
|
|
4.50
|
|
|
$
|
391,210
|
|
|
6.50
|
%
|
||
Tier 1 capital to average assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
First Merchants Corporation
|
$
|
720,484
|
|
|
10.54
|
%
|
|
$
|
273,456
|
|
|
4.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
First Merchants Bank
|
734,561
|
|
|
10.78
|
|
|
272,461
|
|
|
4.00
|
|
|
$
|
340,576
|
|
|
5.00
|
%
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||
|
First Merchants Corporation
|
|
First Merchants Bank
|
|
First Merchants Corporation
|
|
First Merchants Bank
|
||||||||
Total Risk-Based Capital
|
|
|
|
|
|
|
|
||||||||
Total Stockholders' Equity (GAAP)
|
$
|
1,283,120
|
|
|
$
|
1,384,867
|
|
|
$
|
901,657
|
|
|
$
|
973,641
|
|
Adjust for Accumulated Other Comprehensive (Income) Loss
(1)
|
6,358
|
|
|
3,170
|
|
|
13,581
|
|
|
9,701
|
|
||||
Less: Preferred Stock
|
(125
|
)
|
|
(125
|
)
|
|
(125
|
)
|
|
(125
|
)
|
||||
Add: Qualifying Capital Securities
|
65,864
|
|
|
|
|
55,415
|
|
|
|
||||||
Less: Tier 1 Capital Deductions
|
|
|
|
|
(376
|
)
|
|
|
|||||||
Less: Disallowed Goodwill and Intangible Assets
|
(462,080
|
)
|
|
(461,632
|
)
|
|
(249,104
|
)
|
|
(248,656
|
)
|
||||
Less: Disallowed Deferred Tax Assets
|
|
|
|
|
(564
|
)
|
|
|
|||||||
Total Tier 1 Capital (Regulatory)
|
893,137
|
|
|
926,280
|
|
|
720,484
|
|
|
734,561
|
|
||||
Qualifying Subordinated Debentures
|
65,000
|
|
|
|
|
65,000
|
|
|
|
||||||
Allowance for Loan Losses Includible in Tier 2 Capital
|
73,354
|
|
|
73,354
|
|
|
66,037
|
|
|
66,037
|
|
||||
Total Risk-Based Capital (Regulatory)
|
$
|
1,031,491
|
|
|
$
|
999,634
|
|
|
$
|
851,521
|
|
|
$
|
800,598
|
|
|
|
|
|
|
|
|
|
||||||||
Net Risk-Weighted Assets (Regulatory)
|
$
|
7,497,321
|
|
|
$
|
7,560,946
|
|
|
$
|
5,993,381
|
|
|
$
|
6,018,623
|
|
Average Assets
|
$
|
8,331,586
|
|
|
$
|
8,344,112
|
|
|
$
|
6,836,412
|
|
|
$
|
6,811,519
|
|
|
|
|
|
|
|
|
|
||||||||
Total Risk-Based Capital Ratio (Regulatory)
|
13.76
|
%
|
|
13.22
|
%
|
|
14.21
|
%
|
|
13.30
|
%
|
||||
Tier 1 Capital to Risk-Weighted Assets
|
11.91
|
%
|
|
12.25
|
%
|
|
12.02
|
%
|
|
12.20
|
%
|
||||
Tier 1 Capital to Average Assets
|
10.72
|
%
|
|
11.10
|
%
|
|
10.54
|
%
|
|
10.78
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
CET1 Capital Ratio
|
|
|
|
|
|
|
|
||||||||
Total Tier 1 Capital (Regulatory)
|
$
|
893,137
|
|
|
$
|
926,280
|
|
|
$
|
720,484
|
|
|
$
|
734,561
|
|
Less: Qualified Capital Securities
|
(65,864
|
)
|
|
|
|
(55,415
|
)
|
|
|
||||||
Add: Additional Tier 1 Capital Deductions
|
—
|
|
|
|
|
376
|
|
|
|
||||||
CET1 Capital (Regulatory)
|
$
|
827,273
|
|
|
$
|
926,280
|
|
|
$
|
665,445
|
|
|
$
|
734,561
|
|
|
|
|
|
|
|
|
|
||||||||
Net Risk-Weighted Assets (Regulatory)
|
$
|
7,497,321
|
|
|
$
|
7,560,946
|
|
|
$
|
5,993,381
|
|
|
$
|
6,018,623
|
|
CET1 Capital Ratio (Regulatory)
|
11.03
|
%
|
|
12.25
|
%
|
|
11.10
|
%
|
|
12.20
|
%
|
|
Tangible Common Equity to Tangible Assets (non-GAAP)
|
||||||
(Dollars in Thousands, Except Per Share Amounts)
|
September 30, 2017
|
|
December 31, 2016
|
||||
Total Stockholders' Equity (GAAP)
|
$
|
1,283,120
|
|
|
$
|
901,657
|
|
Less: Cumulative preferred stock (GAAP)
|
(125
|
)
|
|
(125
|
)
|
||
Less: Intangible assets (GAAP)
|
(478,558
|
)
|
|
(258,866
|
)
|
||
Tangible common equity (non-GAAP)
|
$
|
804,437
|
|
|
$
|
642,666
|
|
Total assets (GAAP)
|
$
|
9,049,403
|
|
|
$
|
7,211,611
|
|
Less: Intangible assets (GAAP)
|
(478,558
|
)
|
|
(258,866
|
)
|
||
Tangible assets (non-GAAP)
|
$
|
8,570,845
|
|
|
$
|
6,952,745
|
|
Tangible common equity to tangible assets (non-GAAP)
|
9.39
|
%
|
|
9.24
|
%
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||
(Dollars in Thousands, Except Per Share Amounts)
|
2017
|
|
2016
|
2017
|
|
2016
|
||||||||
Average goodwill (GAAP)
|
$
|
422,609
|
|
|
$
|
244,000
|
|
$
|
311,838
|
|
|
$
|
244,000
|
|
Average core deposit intangible (GAAP)
|
31,859
|
|
|
16,288
|
|
20,638
|
|
|
17,303
|
|
||||
Average deferred tax on CDI (GAAP)
|
(11,932
|
)
|
|
(6,324
|
)
|
(8,001
|
)
|
|
(6,608
|
)
|
||||
Intangible adjustment (non-GAAP)
|
$
|
442,536
|
|
|
$
|
253,964
|
|
$
|
324,475
|
|
|
$
|
254,695
|
|
Average stockholders' equity (GAAP)
|
$
|
1,244,472
|
|
|
$
|
896,934
|
|
$
|
1,048,420
|
|
|
$
|
878,302
|
|
Average cumulative preferred stock (GAAP)
|
(125
|
)
|
|
(125
|
)
|
(125
|
)
|
|
(125
|
)
|
||||
Intangible adjustment (non-GAAP)
|
(442,536
|
)
|
|
(253,964
|
)
|
(324,475
|
)
|
|
(254,695
|
)
|
||||
Average tangible capital (non-GAAP)
|
$
|
801,811
|
|
|
$
|
642,845
|
|
$
|
723,820
|
|
|
$
|
623,482
|
|
Average assets (GAAP)
|
$
|
8,793,666
|
|
|
$
|
6,907,303
|
|
$
|
7,866,643
|
|
|
$
|
6,836,412
|
|
Intangible adjustment (non-GAAP)
|
(442,536
|
)
|
|
(253,964
|
)
|
(324,475
|
)
|
|
(254,695
|
)
|
||||
Average tangible assets (non-GAAP)
|
$
|
8,351,130
|
|
|
$
|
6,653,339
|
|
$
|
7,542,168
|
|
|
$
|
6,581,717
|
|
Net income available to common stockholders (GAAP)
|
$
|
24,358
|
|
|
$
|
21,059
|
|
$
|
71,687
|
|
|
$
|
58,758
|
|
CDI amortization, net of tax (GAAP)
|
1,103
|
|
|
636
|
|
2,334
|
|
|
1,906
|
|
||||
Tangible net income available to common stockholders (non-GAAP)
|
$
|
25,461
|
|
|
$
|
21,695
|
|
$
|
74,021
|
|
|
$
|
60,664
|
|
Per Share Data:
|
|
|
|
|
|
|
||||||||
Diluted net income available to common stockholders (GAAP)
|
$
|
0.50
|
|
|
$
|
0.51
|
|
$
|
1.63
|
|
|
$
|
1.43
|
|
Diluted tangible net income available to common stockholders (non-GAAP)
|
$
|
0.52
|
|
|
$
|
0.53
|
|
$
|
1.68
|
|
|
$
|
1.48
|
|
Ratios:
|
|
|
|
|
|
|
||||||||
Return on average GAAP capital (ROE)
|
7.83
|
%
|
|
9.39
|
%
|
9.12
|
%
|
|
8.92
|
%
|
||||
Return on average tangible capital
|
12.70
|
%
|
|
13.50
|
%
|
13.64
|
%
|
|
12.97
|
%
|
||||
Return on average assets (ROA)
|
1.11
|
%
|
|
1.22
|
%
|
1.22
|
%
|
|
1.15
|
%
|
||||
Return on average tangible assets
|
1.22
|
%
|
|
1.30
|
%
|
1.31
|
%
|
|
1.23
|
%
|
(Dollars in Thousands)
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Non-Performing Assets plus loans 90+ Days Delinquent:
|
|
|
|
|
|
|
||
Non-accrual loans
|
|
$
|
32,253
|
|
|
$
|
29,998
|
|
Renegotiated loans
|
|
626
|
|
|
4,747
|
|
||
Non-performing loans (NPL)
|
|
32,879
|
|
|
34,745
|
|
||
Other real estate owned
|
|
11,912
|
|
|
8,966
|
|
||
Non-performing assets (NPA)
|
|
44,791
|
|
|
43,711
|
|
||
90+ days delinquent and accruing
|
|
425
|
|
|
112
|
|
||
Non-performing assets plus loans 90+ days delinquent
|
|
$
|
45,216
|
|
|
$
|
43,823
|
|
Impaired Loans
|
|
$
|
54,479
|
|
|
$
|
72,050
|
|
(Dollars in Thousands)
|
September 30, 2017
|
|
December 31, 2016
|
||||
Non-Performing Assets plus loans 90+ Days Delinquent:
|
|
|
|
||||
Commercial and industrial loans
|
$
|
4,940
|
|
|
$
|
2,138
|
|
Agricultural production financing and other loans to farmers
|
1,282
|
|
|
1,341
|
|
||
Real estate loans:
|
|
|
|
||||
Construction
|
3,732
|
|
|
5,312
|
|
||
Commercial and farmland
|
19,560
|
|
|
22,362
|
|
||
Residential
|
13,456
|
|
|
10,943
|
|
||
Home equity
|
2,175
|
|
|
1,688
|
|
||
Individuals' loans for household and other personal expenditures
|
71
|
|
|
39
|
|
||
Non-performing assets plus loans 90+ days delinquent
|
$
|
45,216
|
|
|
$
|
43,823
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(Dollars in Thousands)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net Charge-Offs (Recoveries):
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial loans
|
$
|
144
|
|
|
$
|
545
|
|
|
$
|
350
|
|
|
$
|
1,189
|
|
Agricultural production financing and other loans to farmers
|
|
|
|
|
|
|
(58
|
)
|
|
53
|
|
||||
Real estate loans:
|
|
|
|
|
|
|
|
||||||||
Construction
|
(1
|
)
|
|
(21
|
)
|
|
(28
|
)
|
|
(3
|
)
|
||||
Commercial and farmland
|
(1,136
|
)
|
|
(58
|
)
|
|
(1,035
|
)
|
|
203
|
|
||||
Residential
|
60
|
|
|
80
|
|
|
154
|
|
|
502
|
|
||||
Home equity
|
10
|
|
|
71
|
|
|
434
|
|
|
199
|
|
||||
Individuals' loans for household and other personal expenditures
|
123
|
|
|
13
|
|
|
209
|
|
|
95
|
|
||||
Other commercial loans
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
||||
Total Net Charge-Offs
|
$
|
(800
|
)
|
|
$
|
630
|
|
|
$
|
26
|
|
|
$
|
2,237
|
|
(Dollars in Thousands)
|
September 30, 2017
|
||
Amounts of commitments:
|
|
||
Loan commitments to extend credit
|
$
|
2,699,227
|
|
Standby and commercial letters of credit
|
42,140
|
|
|
|
$
|
2,741,367
|
|
(Dollars in Thousands)
|
Remaining
2017 |
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023 and
after |
|
ASC 805 fair value adjustments at acquisition
|
|
Total
|
||||||||||||||||||
Operating leases
|
$
|
872
|
|
|
$
|
2,832
|
|
|
$
|
3,124
|
|
|
$
|
2,989
|
|
|
$
|
2,630
|
|
|
$
|
2,575
|
|
|
$
|
9,598
|
|
|
|
|
$
|
24,620
|
|
||
Federal funds purchased
|
100,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
100,000
|
|
||||||||||||||||
Securities sold under repurchase agreements
|
142,107
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
142,107
|
|
||||||||||||||||
Federal Home Loan Bank advances
|
77,443
|
|
|
96,391
|
|
|
121,713
|
|
|
31,273
|
|
|
25,000
|
|
|
20,000
|
|
|
35,000
|
|
|
|
|
406,820
|
|
||||||||||
Subordinated debentures and term loans
|
1,500
|
|
|
|
|
|
|
|
|
|
|
|
|
142,322
|
|
|
(4,136
|
)
|
|
139,686
|
|
||||||||||||||
Total
|
$
|
321,922
|
|
|
$
|
99,223
|
|
|
$
|
124,837
|
|
|
$
|
34,262
|
|
|
$
|
27,630
|
|
|
$
|
22,575
|
|
|
$
|
186,920
|
|
|
$
|
(4,136
|
)
|
|
$
|
813,233
|
|
|
|
September 30, 2017
|
|||
|
|
RISING
|
|
FALLING
|
|
Driver Rates
|
|
(200 Basis Points)
|
|
(100 Basis Points)
|
|
Prime
|
|
200
|
|
(100
|
)
|
Federal funds
|
|
200
|
|
(100
|
)
|
One-year CMT
|
|
200
|
|
(100
|
)
|
Three-year CMT
|
|
200
|
|
(100
|
)
|
Five-year CMT
|
|
200
|
|
(100
|
)
|
CD's
|
|
200
|
|
(24
|
)
|
FHLB advances
|
|
200
|
|
(99
|
)
|
|
|
September 30, 2017
|
||||||||||
|
|
|
|
RISING
|
|
FALLING
|
||||||
(Dollars in Thousands)
|
|
Base
|
|
(200 Basis Points)
|
|
(100 Basis Points)
|
||||||
Net interest income
|
|
$
|
289,060
|
|
|
$
|
314,691
|
|
|
$
|
264,928
|
|
Variance from base
|
|
|
|
$
|
25,631
|
|
|
$
|
(24,132
|
)
|
||
Percent of change from base
|
|
|
|
8.87
|
%
|
|
(8.35
|
)%
|
|
|
December 31, 2016
|
|||
|
|
RISING
|
|
FALLING
|
|
Driver Rates
|
|
(200 Basis Points)
|
|
(100 Basis Points)
|
|
Prime
|
|
200
|
|
(50
|
)
|
Federal funds
|
|
200
|
|
(50
|
)
|
One-year CMT
|
|
200
|
|
(77
|
)
|
Three-year CMT
|
|
200
|
|
(100
|
)
|
Five-year CMT
|
|
200
|
|
(100
|
)
|
CD's
|
|
200
|
|
(16
|
)
|
FHLB advances
|
|
200
|
|
(92
|
)
|
|
|
December 31, 2016
|
||||||||||
|
|
|
|
RISING
|
|
FALLING
|
||||||
(Dollars in Thousands)
|
|
Base
|
|
(200 Basis Points)
|
|
(100 Basis Points)
|
||||||
Net interest income
|
|
$
|
231,074
|
|
|
$
|
247,920
|
|
|
$
|
214,302
|
|
Variance from base
|
|
|
|
$
|
16,846
|
|
|
$
|
(16,772
|
)
|
||
Percent of change from base
|
|
|
|
7.29
|
%
|
|
(7.26
|
)%
|
(Dollars in Thousands)
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Interest-bearing time deposits
|
|
$
|
72,950
|
|
|
$
|
24,459
|
|
Investment securities available for sale
|
|
890,721
|
|
|
696,862
|
|
||
Investment securities held to maturity
|
|
578,166
|
|
|
607,643
|
|
||
Loans held for sale
|
|
4,514
|
|
|
2,929
|
|
||
Loans
|
|
6,483,448
|
|
|
5,139,645
|
|
||
Federal Home Loan Bank stock
|
|
23,825
|
|
|
17,964
|
|
||
Total
|
|
$
|
8,053,624
|
|
|
$
|
6,489,502
|
|
Exhibit No:
|
Description of Exhibits:
|
|
|
3.1
|
|
3.2
|
|
4.1
|
|
4.2
|
|
4.3
|
|
4.4
|
|
4.5
|
|
4.6
|
|
4.7
|
|
31.1
|
|
31.2
|
|
32
|
|
101.INS
|
XBRL Instance Document (2)
|
101.SCH
|
XBRL Taxonomy Extension Schema Document (2)
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document (2)
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document (2)
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document (2)
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkebase Document (2)
|
|
|
|
|
|
(1) Filed herewith.
|
|
(2) Furnished herewith.
|
|
First Merchants Corporation
|
|
(Registrant)
|
|
|
|
|
Date: November 9, 2017
|
by
/s/ Michael C. Rechin
|
|
Michael C. Rechin
|
|
President and Chief Executive Officer
|
|
(Principal Executive Officer)
|
|
|
Date: November 9, 2017
|
by
/s/ Mark K. Hardwick
|
|
Mark K. Hardwick
|
|
Executive Vice President,
|
|
Chief Financial Officer and Chief Operating Officer
|
|
(Principal Financial and Accounting Officer)
|
Exhibit No:
|
Description of Exhibits:
|
|
|
3.1
|
|
3.2
|
|
4.1
|
|
4.2
|
|
4.3
|
|
4.4
|
|
4.5
|
|
4.6
|
|
4.7
|
|
31.1
|
|
31.2
|
|
32
|
|
101.INS
|
XBRL Instance Document (2)
|
101.SCH
|
XBRL Taxonomy Extension Schema Document (2)
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document (2)
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document (2)
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document (2)
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkebase Document (2)
|
|
|
|
|
|
(1) Filed herewith.
|
|
(2) Furnished herewith.
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of First Merchants Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in the Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of First Merchants Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in the Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|