Indiana
|
35-1544218
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
200 East Jackson
Muncie, Indiana
|
47305-2814
|
(Address of principal executive offices)
|
(Zip Code)
|
Title of Each Class
|
Name of each exchange on which registered
|
Common Stock, $0.125 stated value per share
|
The NASDAQ Stock Market
|
Large accelerated filer [X]
|
Accelerated filer [ ]
|
Non-accelerated filer [ ]
(Do not check if smaller reporting company)
|
Smaller reporting company [ ]
|
Emerging growth company [ ]
|
|
Documents
|
Part of Form 10-K into which incorporated
|
Portions of the Registrant’s Definitive
|
Part III (Items 10 through 14)
|
Proxy Statement for Annual Meeting of
|
|
Shareholders to be held May 10, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Item 1.
|
||
|
Item 1A.
|
||
|
Item 1B.
|
||
|
Item 2.
|
||
|
Item 3.
|
||
|
Item 4.
|
||
|
|
||
|
|
|
|
|
|
|
|
|
Item 5.
|
||
|
Item 6.
|
||
|
Item 7.
|
||
|
Item 7A.
|
||
|
Item 8.
|
||
|
Item 9.
|
||
|
Item 9A.
|
||
|
Item 9B.
|
||
|
|
|
|
|
|
|
|
|
Item 10.
|
||
|
Item 11.
|
||
|
Item 12.
|
||
|
Item 13.
|
||
|
Item 14.
|
||
|
|
|
|
|
|
|
|
|
Item 15.
|
||
|
Item 16.
|
||
|
|
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
|
AOCI
|
Accumulated Other Comprehensive Income
|
Bank
|
First Merchants Bank, a wholly-owned subsidiary of the Corporation
|
BHC Act
|
Bank Holding Company Act of 1956
|
CET1
|
Common Equity Tier 1
|
C Financial
|
C Financial Corporation, which was acquired by the Corporation on April 17, 2015.
|
CFPB
|
Consumer Financial Protection Bureau
|
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
|
Dodd-Frank Act
|
Dodd-Frank Wall Street Reform and Consumer Protection Act
|
ERISA
|
Employee Retirement Income Security Act of 1974
|
ESPP
|
Employee Stock Purchase Plan
|
FDIC
|
Federal Deposit Insurance Corporation
|
FDICIA
|
Federal Deposit Insurance Corporation Improvement Act of 1991
|
Federal Reserve
|
Federal Reserve Banking System
|
FHLB
|
Federal Home Loan Bank
|
FMIG
|
First Merchants Insurance Services, Inc., an Indiana corporation
|
FTE
|
Fully taxable equivalent
|
GAAP
|
Accounting Principles Generally Accepted in the United States of America
|
IAB
|
Independent Alliance Banks, Inc., which was acquired by the Corporation on July 14, 2017
|
Indiana DFI
|
Indiana Department of Financial Institutions
|
OCC
|
Office of the Comptroller of the Currency
|
OTTI
|
Other-than-temporary impairment
|
RSA
|
Restricted Stock Awards
|
Sarbanes-Oxley Act
|
Sarbanes-Oxley Act of 2002
|
Savings Plan
|
The First Merchants Corporation Retirement and Income Savings Plan
|
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.
|
SEC
|
Securities and Exchange Commission
|
TCJA
|
Tax Cuts and Jobs Act, which was enacted by the U.S. Government on December 22, 2017
|
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.
|
Treasury
|
U.S. Department of Treasury
|
USI
|
USI Insurance Services, LLC
|
•
|
statements of the Corporation’s goals, intentions and expectations;
|
•
|
statements regarding the Corporation’s business plan and growth strategies;
|
•
|
statements regarding the asset quality of the Corporation’s loan and investment portfolios; and
|
•
|
estimates of the Corporation’s risks and future costs and benefits.
|
•
|
acquiring direct or indirect control or ownership of any voting shares of any bank or bank holding company if, after such acquisition, the bank holding company will directly or indirectly own or control more than 5 percent of the voting shares of the bank or bank holding company;
|
•
|
merging or consolidating with another bank holding company; or
|
•
|
acquiring substantially all of the assets of any bank.
|
•
|
a minimum ratio of CET1 to risk-weighted assets of a least 4.5 percent, plus, when fully phased-in on January 1, 2019, a 2.5 percent "capital conservation buffer" (which is added to the 4.5 percent CET1 as that buffer is phased in, effectively resulting in a minimum ratio of CET1 to risk-weighted assets of at least 7.0 percent upon full implementation);
|
•
|
a minimum ratio of Tier 1 capital to risk-weighted assets of at least 6.0 percent, plus, when fully phased-in on January 1, 2019, the 2.5 percent capital conservation buffer (which is added to the 6.0 percent Tier 1 capital ratio as that buffer is phased-in, effectively resulting in a minimum Tier 1 capital ratio of 8.5 percent upon full implementation);
|
•
|
a minimum ratio of total capital (Tier 1 plus Tier 2 capital) to risk-weighted assets of at least 8.0 percent, plus, when fully phased-in on January 1, 2019, the 2.5 percent capital conservation buffer (which is added to the 8.0 percent total capital ratio as that buffer is phased-in, effectively resulting in a minimum total capital ratio of 10.5 percent upon full implementation); and
|
•
|
a minimum leverage ratio of 4.0 percent, calculated as the ratio of Tier 1 capital to adjusted average consolidated assets.
|
|
Corporation
|
|
Regulatory Minimum Requirement*
|
||
Total risk-based capital to risk-weighted assets
|
13.69
|
%
|
|
8.00
|
%
|
Tier 1 capital to risk-weighted assets
|
11.86
|
%
|
|
6.00
|
%
|
Common equity tier 1 capital to risk-weighted assets
|
11.00
|
%
|
|
4.50
|
%
|
Tier 1 capital to average assets
|
10.43
|
%
|
|
4.00
|
%
|
•
|
be required to perform annual stress tests as described below in “ - Stress Testing;”
|
•
|
calculate our FDIC deposit assessment base using the performance score and a loss-severity score system described below in “ - Deposit Insurance;” and
|
•
|
be examined for compliance with federal consumer protection laws primarily by the Consumer Financial Protection Bureau as described below in “ - Consumer Financial Protection.”
|
•
|
introducing CET1 ratio requirement at each level (other than critically undercapitalized), with the required CET1 ratio being 6.5 percent for well-capitalized status;
|
•
|
increasing the minimum Tier 1 capital ratio requirement for each category, with the minimum Tier 1 risk-based capital ratio for well-capitalized status being 8.0 percent; and
|
•
|
eliminating a provision that provides that a bank with a composite supervisory rating of 1 may have a 3.0 percent leverage ratio and still be well-capitalized.
|
•
|
increases to the cost of the Corporation’s operations due to greater regulatory oversight, supervision and examination of banks and bank holding companies, including higher deposit insurance premiums;
|
•
|
limitations on the Corporation’s ability to raise additional capital through the use of trust preferred securities, as new issuances of these securities may no longer be included as Tier 1 capital;
|
•
|
reduced flexibility for the Corporation to generate or originate certain revenue-producing assets based on increased regulatory capital standards; and
|
•
|
limitations on the Corporation’s ability to expand consumer product and service offerings due to stricter consumer protection laws and regulations.
|
•
|
the Equal Credit Opportunity Act (prohibiting discrimination on the basis of race, religion or other prohibited factors in the extension of credit);
|
•
|
the Fair Credit Reporting Act (governing the provision of consumer information to credit reporting agencies and the use of consumer information);
|
•
|
the Truth-In-Lending Act (governing disclosures of credit terms to consumer borrowers);
|
•
|
the Truth-in-Savings Act (which requires disclosure of deposit terms to consumers);
|
•
|
the Electronic Funds Transfer Act (governing automatic deposits to and withdrawals from deposit accounts and customers’ rights and liabilities arising from the use of automated teller machines and other electronic banking services);
|
•
|
the Fair Debt Collection Act (governing the manner in which consumer debts may be collected by collection agencies);
|
•
|
the Right to Financial Privacy Act (which imposes a duty to maintain the confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial records); and
|
•
|
the respective state-law counterparts to the above laws, as applicable, as well as state usury laws and laws regarding unfair and deceptive acts and practices.
|
•
|
a prohibition on personal loans made or arranged by the issuer to its directors and executive officers (except for loans made by a bank subject to Regulation O);
|
•
|
independence requirements for audit committee members;
|
•
|
independence requirements for company auditors;
|
•
|
certification of financial statements on Forms 10-K and 10-Q reports by the chief executive officer and the chief financial officer;
|
•
|
the forfeiture by the chief executive officer and chief financial officer of bonuses or other incentive-based compensation and profits from the sale of an issuer’s securities by such officers in the twelve-month period following initial publication of any financial statements that later require restatement due to corporate misconduct;
|
•
|
disclosure of off-balance sheet transactions;
|
•
|
two-business day filing requirements for insiders filing Form 4s;
|
•
|
disclosure of a code of ethics for financial officers and filing a Form 8-K for a change in or waiver of such code;
|
•
|
the reporting of securities violations “up the ladder” by both in-house and outside attorneys;
|
•
|
restrictions on the use of non-GAAP financial measures in press releases and SEC filings;
|
•
|
the formation of a public accounting oversight board; and
|
•
|
various increased criminal penalties for violations of securities laws.
|
|
Average Balance
|
|
Interest
Income / Expense |
|
Average
Rate |
|
Average Balance
|
|
Interest
Income / Expense |
|
Average
Rate |
|
Average Balance
|
|
Interest
Income / Expense |
|
Average
Rate |
|||||||||||||||
(Dollars in Thousands)
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing deposits
|
$
|
75,417
|
|
|
$
|
736
|
|
|
0.98
|
%
|
|
$
|
69,753
|
|
|
$
|
350
|
|
|
0.50
|
%
|
|
$
|
61,373
|
|
|
$
|
160
|
|
|
0.26
|
%
|
Federal Reserve and Federal Home Loan Bank stock
|
20,921
|
|
|
894
|
|
|
4.27
|
|
|
24,268
|
|
|
1,098
|
|
|
4.52
|
|
|
37,495
|
|
|
1,967
|
|
|
5.25
|
|
||||||
Investment Securities:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Taxable
|
726,004
|
|
|
17,489
|
|
|
2.41
|
|
|
721,689
|
|
|
16,415
|
|
|
2.27
|
|
|
703,019
|
|
|
17,885
|
|
|
2.54
|
|
||||||
Tax-exempt
(2)
|
632,076
|
|
|
32,891
|
|
|
5.20
|
|
|
550,335
|
|
|
28,649
|
|
|
5.21
|
|
|
483,103
|
|
|
26,034
|
|
|
5.39
|
|
||||||
Total investment securities
|
1,358,080
|
|
|
50,380
|
|
|
3.71
|
|
|
1,272,024
|
|
|
45,064
|
|
|
3.54
|
|
|
1,186,122
|
|
|
43,919
|
|
|
3.70
|
|
||||||
Loans held for sale
|
7,707
|
|
|
462
|
|
|
5.99
|
|
|
4,050
|
|
|
372
|
|
|
9.19
|
|
|
3,725
|
|
|
475
|
|
|
12.75
|
|
||||||
Loans:
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial
|
4,267,651
|
|
|
204,771
|
|
|
4.80
|
|
|
3,541,098
|
|
|
162,848
|
|
|
4.60
|
|
|
3,187,239
|
|
|
142,696
|
|
|
4.48
|
|
||||||
Real estate mortgage
|
679,284
|
|
|
30,267
|
|
|
4.46
|
|
|
566,050
|
|
|
25,156
|
|
|
4.44
|
|
|
457,013
|
|
|
19,457
|
|
|
4.26
|
|
||||||
Installment
|
573,100
|
|
|
28,204
|
|
|
4.92
|
|
|
485,111
|
|
|
21,926
|
|
|
4.52
|
|
|
406,163
|
|
|
18,177
|
|
|
4.48
|
|
||||||
Tax-exempt
(2)
|
353,542
|
|
|
16,452
|
|
|
4.65
|
|
|
217,696
|
|
|
10,039
|
|
|
4.61
|
|
|
125,699
|
|
|
5,322
|
|
|
4.23
|
|
||||||
Total loans
|
5,881,284
|
|
|
280,156
|
|
|
4.76
|
|
|
4,814,005
|
|
|
220,341
|
|
|
4.58
|
|
|
4,179,839
|
|
|
186,127
|
|
|
4.45
|
|
||||||
Total earning assets
|
7,335,702
|
|
|
332,166
|
|
|
4.53
|
%
|
|
6,180,050
|
|
|
266,853
|
|
|
4.32
|
%
|
|
5,464,829
|
|
|
232,173
|
|
|
4.25
|
%
|
||||||
Net unrealized gain on securities available for sale
|
4,360
|
|
|
|
|
|
|
9,969
|
|
|
|
|
|
|
11,800
|
|
|
|
|
|
||||||||||||
Allowance for loan losses
|
(70,380
|
)
|
|
|
|
|
|
(62,976
|
)
|
|
|
|
|
|
(62,975
|
)
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
142,503
|
|
|
|
|
|
|
105,443
|
|
|
|
|
|
|
98,051
|
|
|
|
|
|
||||||||||||
Premises and equipment
|
97,446
|
|
|
|
|
|
|
96,023
|
|
|
|
|
|
|
82,710
|
|
|
|
|
|
||||||||||||
Other assets
|
686,598
|
|
|
|
|
|
|
570,756
|
|
|
|
|
|
|
491,272
|
|
|
|
|
|
||||||||||||
Total Assets
|
$
|
8,196,229
|
|
|
|
|
|
|
$
|
6,899,265
|
|
|
|
|
|
|
$
|
6,085,687
|
|
|
|
|
|
|||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing accounts
|
$
|
1,730,272
|
|
|
$
|
5,817
|
|
|
0.34
|
%
|
|
$
|
1,427,535
|
|
|
$
|
2,579
|
|
|
0.18
|
%
|
|
$
|
1,109,829
|
|
|
$
|
1,374
|
|
|
0.12
|
%
|
Money market deposit accounts
|
938,959
|
|
|
2,788
|
|
|
0.30
|
|
|
825,681
|
|
|
1,705
|
|
|
0.21
|
|
|
840,084
|
|
|
1,768
|
|
|
0.21
|
|
||||||
Savings deposits
|
844,825
|
|
|
734
|
|
|
0.09
|
|
|
731,902
|
|
|
618
|
|
|
0.08
|
|
|
614,675
|
|
|
672
|
|
|
0.11
|
|
||||||
Certificates and other time deposits
|
1,339,866
|
|
|
14,467
|
|
|
1.08
|
|
|
1,151,700
|
|
|
11,012
|
|
|
0.96
|
|
|
1,121,651
|
|
|
11,041
|
|
|
0.98
|
|
||||||
Total interest-bearing deposits
|
4,853,922
|
|
|
23,806
|
|
|
0.49
|
|
|
4,136,818
|
|
|
15,914
|
|
|
0.38
|
|
|
3,686,239
|
|
|
14,855
|
|
|
0.40
|
|
||||||
Borrowings
|
664,045
|
|
|
13,806
|
|
|
2.08
|
|
|
512,356
|
|
|
10,925
|
|
|
2.13
|
|
|
480,794
|
|
|
9,939
|
|
|
2.07
|
|
||||||
Total interest-bearing liabilities
|
5,517,967
|
|
|
37,612
|
|
|
0.68
|
|
|
4,649,174
|
|
|
26,839
|
|
|
0.58
|
|
|
4,167,033
|
|
|
24,794
|
|
|
0.60
|
|
||||||
Noninterest-bearing deposits
|
1,514,829
|
|
|
|
|
|
|
1,301,399
|
|
|
|
|
|
|
1,120,264
|
|
|
|
|
|
||||||||||||
Other liabilities
|
52,909
|
|
|
|
|
|
|
64,028
|
|
|
|
|
|
|
44,666
|
|
|
|
|
|
||||||||||||
Total Liabilities
|
7,085,705
|
|
|
|
|
|
|
6,014,601
|
|
|
|
|
|
|
5,331,963
|
|
|
|
|
|
||||||||||||
Stockholders' Equity
|
1,110,524
|
|
|
|
|
|
|
884,664
|
|
|
|
|
|
|
753,724
|
|
|
|
|
|
||||||||||||
Total Liabilities and Stockholders' Equity
|
$
|
8,196,229
|
|
|
37,612
|
|
|
|
|
$
|
6,899,265
|
|
|
26,839
|
|
|
|
|
$
|
6,085,687
|
|
|
24,794
|
|
|
|
||||||
Net Interest Income (FTE)
|
|
|
$
|
294,554
|
|
|
|
|
|
|
$
|
240,014
|
|
|
|
|
|
|
$
|
207,379
|
|
|
|
|||||||||
Net Interest Spread (FTE)
|
|
|
|
|
3.85
|
%
|
|
|
|
|
|
3.74
|
%
|
|
|
|
|
|
3.65
|
%
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Interest Margin (FTE):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest Income (FTE) / Average Earning Assets
|
|
|
|
|
4.53
|
%
|
|
|
|
|
|
4.32
|
%
|
|
|
|
|
|
4.25
|
%
|
||||||||||||
Interest Expense / Average Earning Assets
|
|
|
|
|
0.51
|
%
|
|
|
|
|
|
0.43
|
%
|
|
|
|
|
|
0.45
|
%
|
||||||||||||
Net Interest Margin (FTE)
|
|
|
|
|
4.02
|
%
|
|
|
|
|
|
3.89
|
%
|
|
|
|
|
|
3.80
|
%
|
|
2017 Compared to 2016
Increase (Decrease) Due To |
|
2016 Compared to 2015
Increase (Decrease) Due To |
|
2015 Compared to 2014
Increase (Decrease) Due To |
||||||||||||||||||||||||||||||
(Dollars in Thousands, Fully Taxable Equivalent Basis)
|
Volume
|
|
Rate
|
|
Total
|
|
Volume
|
|
Rate
|
|
Total
|
|
Volume
|
|
Rate
|
|
Total
|
||||||||||||||||||
Interest Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Interest-bearing deposits
|
$
|
31
|
|
|
$
|
355
|
|
|
$
|
386
|
|
|
$
|
24
|
|
|
$
|
166
|
|
|
$
|
190
|
|
|
$
|
20
|
|
|
$
|
16
|
|
|
$
|
36
|
|
Federal Reserve and Federal Home Loan Bank stock
|
(145
|
)
|
|
(59
|
)
|
|
(204
|
)
|
|
(625
|
)
|
|
(244
|
)
|
|
(869
|
)
|
|
(241
|
)
|
|
84
|
|
|
(157
|
)
|
|||||||||
Investment securities
|
3,133
|
|
|
2,183
|
|
|
5,316
|
|
|
3,095
|
|
|
(1,950
|
)
|
|
1,145
|
|
|
961
|
|
|
949
|
|
|
1,910
|
|
|||||||||
Loans held for sale
|
252
|
|
|
(162
|
)
|
|
90
|
|
|
39
|
|
|
(142
|
)
|
|
(103
|
)
|
|
(274
|
)
|
|
264
|
|
|
(10
|
)
|
|||||||||
Loans
|
50,333
|
|
|
9,392
|
|
|
59,725
|
|
|
28,858
|
|
|
5,459
|
|
|
34,317
|
|
|
20,315
|
|
|
(6,721
|
)
|
|
13,594
|
|
|||||||||
Totals
|
53,604
|
|
|
11,709
|
|
|
65,313
|
|
|
31,391
|
|
|
3,289
|
|
|
34,680
|
|
|
20,781
|
|
|
(5,408
|
)
|
|
15,373
|
|
|||||||||
Interest Expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Interest-bearing NOW accounts
|
640
|
|
|
2,598
|
|
|
3,238
|
|
|
463
|
|
|
742
|
|
|
1,205
|
|
|
47
|
|
|
217
|
|
|
264
|
|
|||||||||
Money market deposit accounts
|
258
|
|
|
825
|
|
|
1,083
|
|
|
(30
|
)
|
|
(33
|
)
|
|
(63
|
)
|
|
132
|
|
|
64
|
|
|
196
|
|
|||||||||
Savings deposits
|
98
|
|
|
18
|
|
|
116
|
|
|
115
|
|
|
(169
|
)
|
|
(54
|
)
|
|
91
|
|
|
(38
|
)
|
|
53
|
|
|||||||||
Certificates and other time deposits
|
1,929
|
|
|
1,526
|
|
|
3,455
|
|
|
292
|
|
|
(321
|
)
|
|
(29
|
)
|
|
672
|
|
|
1,992
|
|
|
2,664
|
|
|||||||||
Borrowings
|
3,160
|
|
|
(279
|
)
|
|
2,881
|
|
|
666
|
|
|
320
|
|
|
986
|
|
|
(234
|
)
|
|
9
|
|
|
(225
|
)
|
|||||||||
Totals
|
6,085
|
|
|
4,688
|
|
|
10,773
|
|
|
1,506
|
|
|
539
|
|
|
2,045
|
|
|
708
|
|
|
2,244
|
|
|
2,952
|
|
|||||||||
Change in net interest income (fully taxable equivalent basis)
|
$
|
47,519
|
|
|
$
|
7,021
|
|
|
54,540
|
|
|
$
|
29,885
|
|
|
$
|
2,750
|
|
|
32,635
|
|
|
$
|
20,073
|
|
|
$
|
(7,652
|
)
|
|
12,421
|
|
|||
Tax equivalent adjustment using marginal rate of 35% for 2017, 2016, and 2015
|
|
|
|
|
(3,729
|
)
|
|
|
|
|
|
(2,566
|
)
|
|
|
|
|
|
(3,054
|
)
|
|||||||||||||||
Change in net interest income
|
|
|
|
|
$
|
50,811
|
|
|
|
|
|
|
$
|
30,069
|
|
|
|
|
|
|
$
|
9,367
|
|
|
Amortized Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Fair Value
|
||||||||
Available for sale at December 31, 2017
|
|
|
|
|
|
|
|
||||||||
State and municipal
|
$
|
510,852
|
|
|
$
|
16,932
|
|
|
$
|
1,091
|
|
|
$
|
526,693
|
|
U.S. Government-sponsored mortgage-backed securities
|
473,325
|
|
|
964
|
|
|
3,423
|
|
|
470,866
|
|
||||
Corporate obligations
|
31
|
|
|
|
|
|
|
|
31
|
|
|||||
Equity securities
|
2,357
|
|
|
|
|
|
|
2,357
|
|
||||||
Total available for sale
|
986,565
|
|
|
17,896
|
|
|
4,514
|
|
|
999,947
|
|
||||
Held to maturity at December 31, 2017
|
|
|
|
|
|
|
|
||||||||
U.S. Government-sponsored agency securities
|
22,618
|
|
|
|
|
|
435
|
|
|
22,183
|
|
||||
State and municipal
|
235,594
|
|
|
6,295
|
|
|
244
|
|
|
241,645
|
|
||||
U.S. Government-sponsored mortgage-backed securities
|
301,443
|
|
|
3,341
|
|
|
1,404
|
|
|
303,380
|
|
||||
Foreign Investment
|
1,000
|
|
|
|
|
|
|
1,000
|
|
||||||
Total held to maturity
|
560,655
|
|
|
9,636
|
|
|
2,083
|
|
|
568,208
|
|
||||
Total Investment Securities
|
$
|
1,547,220
|
|
|
$
|
27,532
|
|
|
$
|
6,597
|
|
|
$
|
1,568,155
|
|
|
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
|
|
|
Amortized Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Fair Value
|
||||||||
Available for sale at December 31, 2015
|
|
|
|
|
|
|
|
||||||||
U.S. Government-sponsored agency securities
|
$
|
100
|
|
|
$
|
4
|
|
|
|
|
$
|
104
|
|
||
State and municipal
|
291,730
|
|
|
14,241
|
|
|
$
|
60
|
|
|
305,911
|
|
|||
U.S. Government-sponsored mortgage-backed securities
|
342,550
|
|
|
4,234
|
|
|
518
|
|
|
346,266
|
|
||||
Corporate obligations
|
31
|
|
|
|
|
|
|
|
|
31
|
|
||||
Equity securities
|
3,912
|
|
|
|
|
|
|
3,912
|
|
||||||
Certificates of deposit
|
2,176
|
|
|
|
|
|
|
2,176
|
|
||||||
Total available for sale
|
640,499
|
|
|
18,479
|
|
|
578
|
|
|
658,400
|
|
||||
Held to maturity at December 31, 2015
|
|
|
|
|
|
|
|
||||||||
State and municipal
|
219,767
|
|
|
6,982
|
|
|
15
|
|
|
226,734
|
|
||||
U.S. Government-sponsored mortgage-backed securities
|
398,832
|
|
|
7,601
|
|
|
787
|
|
|
405,646
|
|
||||
Total held to maturity
|
618,599
|
|
|
14,583
|
|
|
802
|
|
|
632,380
|
|
||||
Total Investment Securities
|
$
|
1,259,098
|
|
|
$
|
33,062
|
|
|
$
|
1,380
|
|
|
$
|
1,290,780
|
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||
(Dollars in Thousands)
|
Cost
|
|
Yield
|
|
Cost
|
|
Yield
|
|
Cost
|
|
Yield
|
|||||||||
Federal Reserve and Federal Home Loan Bank stock at December 31:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Federal Reserve Bank stock
|
|
|
|
|
|
|
|
|
$
|
19,456
|
|
|
6.0
|
%
|
||||||
Federal Home Loan Bank stock
|
$
|
23,825
|
|
|
3.8
|
%
|
|
$
|
17,964
|
|
|
4.3
|
%
|
|
18,177
|
|
|
5.3
|
%
|
|
Total
|
$
|
23,825
|
|
|
3.8
|
%
|
|
$
|
17,964
|
|
|
4.3
|
%
|
|
$
|
37,633
|
|
|
5.7
|
%
|
|
Within 1 Year
|
|
1-5 Years
|
|
5-10 Years
|
|||||||||||||||
(Dollars in Thousands)
|
Amount
|
|
Yield
(1)
|
|
Amount
|
|
Yield
(1)
|
|
Amount
|
|
Yield
(1)
|
|||||||||
Securities available for sale December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
State and municipal
|
$
|
425
|
|
|
6.3
|
%
|
|
$
|
5,204
|
|
|
6.2
|
%
|
|
$
|
78,806
|
|
|
5.3
|
%
|
|
$
|
425
|
|
|
6.3
|
%
|
|
$
|
5,204
|
|
|
6.2
|
%
|
|
$
|
78,806
|
|
|
5.3
|
%
|
|
Due After Ten Years
|
|
Equity and U.S. Government-
Sponsored Mortgage - Backed Securities |
|
Total
|
|||||||||||||||
|
Amount
|
|
Yield
(1)
|
|
Amount
|
|
Yield
(1)
|
|
Amount
|
|
Yield
(1)
|
|||||||||
State and municipal
|
$
|
442,258
|
|
|
5.0
|
%
|
|
|
|
|
|
$
|
526,693
|
|
|
5.0
|
%
|
|||
Equity securities
|
|
|
|
|
$
|
2,357
|
|
|
2.7
|
%
|
|
2,357
|
|
|
2.7
|
%
|
||||
Corporate obligations
|
31
|
|
|
—
|
%
|
|
|
|
|
|
31
|
|
|
—
|
%
|
|||||
U.S. Government-sponsored mortgage-backed securities
|
|
|
|
|
470,866
|
|
|
2.7
|
%
|
|
470,866
|
|
|
2.7
|
%
|
|||||
|
$
|
442,289
|
|
|
5.0
|
%
|
|
$
|
473,223
|
|
|
2.7
|
%
|
|
$
|
999,947
|
|
|
3.9
|
%
|
|
Within 1 Year
|
|
1-5 Years
|
|
5-10 Years
|
|||||||||||||||
|
Amount
|
|
Yield
(1)
|
|
Amount
|
|
Yield
(1)
|
|
Amount
|
|
Yield
(1)
|
|||||||||
Securities held to maturity at December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
U.S. Government-sponsored agency securities
|
|
|
|
|
$
|
22,618
|
|
|
1.8
|
%
|
|
|
|
|
|
|
||||
State and municipal
|
$
|
12,015
|
|
|
6.0
|
%
|
|
52,528
|
|
|
6.3
|
%
|
|
$
|
54,441
|
|
|
5.4
|
%
|
|
Foreign Investment
|
|
|
|
|
1,000
|
|
|
2.2
|
%
|
|
|
|
|
|||||||
|
$
|
12,015
|
|
|
6.0
|
%
|
|
$
|
76,146
|
|
|
4.9
|
%
|
|
$
|
54,441
|
|
|
5.4
|
%
|
|
Due After Ten Years
|
|
Equity and U.S. Government-
Sponsored Mortgage - Backed Securities |
|
Total
|
|||||||||||||||
|
Amount
|
|
Yield
(1)
|
|
Amount
|
|
Yield
(1)
|
|
Amount
|
|
Yield
(1)
|
|||||||||
U.S. Government-sponsored agency securities
|
|
|
|
|
|
|
|
|
$
|
22,618
|
|
|
1.8
|
%
|
||||||
State and municipal
|
$
|
116,610
|
|
|
5.1
|
%
|
|
|
|
|
|
235,594
|
|
|
5.5
|
%
|
||||
Foreign Investment
|
|
|
|
|
|
|
|
|
|
|
1,000
|
|
|
2.2
|
%
|
|||||
U.S. Government-sponsored mortgage-backed securities
|
|
|
|
|
$
|
301,443
|
|
|
2.8
|
%
|
|
301,443
|
|
|
2.8
|
%
|
||||
|
$
|
116,610
|
|
|
5.1
|
%
|
|
$
|
301,443
|
|
|
2.8
|
%
|
|
$
|
560,655
|
|
|
3.9
|
%
|
|
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, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
State and municipal
|
$
|
13,296
|
|
|
$
|
198
|
|
|
$
|
35,324
|
|
|
$
|
893
|
|
|
$
|
48,620
|
|
|
$
|
1,091
|
|
U.S. Government-sponsored mortgage-backed securities
|
182,755
|
|
|
1,520
|
|
|
68,667
|
|
|
1,903
|
|
|
251,422
|
|
|
3,423
|
|
||||||
Total Temporarily Impaired Available for Sale Securities
|
196,051
|
|
|
1,718
|
|
|
103,991
|
|
|
2,796
|
|
|
300,042
|
|
|
4,514
|
|
||||||
Temporarily Impaired Held to Maturity Securities at December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Government-sponsored agency securities
|
9,988
|
|
|
131
|
|
|
12,196
|
|
|
304
|
|
|
22,184
|
|
|
435
|
|
||||||
State and municipal
|
2,430
|
|
|
36
|
|
|
15,805
|
|
|
208
|
|
|
18,235
|
|
|
244
|
|
||||||
U.S. Government-sponsored mortgage-backed securities
|
62,508
|
|
|
485
|
|
|
43,078
|
|
|
919
|
|
|
105,586
|
|
|
1,404
|
|
||||||
Total Temporarily Impaired Held to Maturity Securities
|
74,926
|
|
|
652
|
|
|
71,079
|
|
|
1,431
|
|
|
146,005
|
|
|
2,083
|
|
||||||
Total Temporarily Impaired Investment Securities
|
$
|
270,977
|
|
|
$
|
2,370
|
|
|
$
|
175,070
|
|
|
$
|
4,227
|
|
|
$
|
446,047
|
|
|
$
|
6,597
|
|
|
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
|
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|||||||||||||||||||||||||
(Dollars in Thousands)
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|||||||||||||||
Loans at December 31:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial and industrial loans
|
$
|
1,493,493
|
|
|
22.1
|
%
|
|
$
|
1,194,646
|
|
|
23.2
|
%
|
|
$
|
1,057,075
|
|
|
22.5
|
%
|
|
$
|
896,688
|
|
|
22.8
|
%
|
|
$
|
761,705
|
|
|
21.0
|
%
|
Agricultural production financing
and other loans to farmers |
121,757
|
|
|
1.8
|
|
|
79,689
|
|
|
1.6
|
|
|
97,711
|
|
|
2.1
|
|
|
104,927
|
|
|
2.7
|
|
|
114,348
|
|
|
3.1
|
|
|||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Construction
|
612,219
|
|
|
9.1
|
|
|
418,703
|
|
|
8.1
|
|
|
366,704
|
|
|
7.8
|
|
|
207,221
|
|
|
5.3
|
|
|
177,082
|
|
|
4.9
|
|
|||||
Commercial and farmland
|
2,562,691
|
|
|
38.0
|
|
|
1,953,062
|
|
|
38.1
|
|
|
1,802,921
|
|
|
38.5
|
|
|
1,672,661
|
|
|
42.6
|
|
|
1,611,809
|
|
|
44.4
|
|
|||||
Residential
|
962,765
|
|
|
14.3
|
|
|
739,169
|
|
|
14.4
|
|
|
786,105
|
|
|
16.7
|
|
|
647,315
|
|
|
16.5
|
|
|
616,385
|
|
|
17.0
|
|
|||||
Home equity
|
514,021
|
|
|
7.6
|
|
|
418,525
|
|
|
8.1
|
|
|
348,613
|
|
|
7.4
|
|
|
286,529
|
|
|
7.3
|
|
|
255,223
|
|
|
7.0
|
|
|||||
Individuals' loans for household and
other personal expenditures |
86,935
|
|
|
1.3
|
|
|
77,479
|
|
|
1.5
|
|
|
74,717
|
|
|
1.6
|
|
|
73,400
|
|
|
1.9
|
|
|
69,783
|
|
|
1.9
|
|
|||||
Lease financing receivables, net of unearned income
|
2,527
|
|
|
|
|
|
311
|
|
|
|
|
|
588
|
|
|
|
|
|
1,106
|
|
|
|
|
|
1,545
|
|
|
|
|
|||||
Other commercial loans
|
394,791
|
|
|
5.8
|
|
|
258,061
|
|
|
5.0
|
|
|
159,388
|
|
|
3.4
|
|
|
35,018
|
|
|
0.9
|
|
|
24,529
|
|
|
0.7
|
|
|||||
Loans
|
6,751,199
|
|
|
100.0
|
%
|
|
5,139,645
|
|
|
100.0
|
%
|
|
4,693,822
|
|
|
100.0
|
%
|
|
3,924,865
|
|
|
100.0
|
%
|
|
3,632,409
|
|
|
100.0
|
%
|
|||||
Allowance for loan losses
|
(75,032
|
)
|
|
|
|
(66,037
|
)
|
|
|
|
(62,453
|
)
|
|
|
|
(63,964
|
)
|
|
|
|
(67,870
|
)
|
|
|
||||||||||
Net Loans
|
$
|
6,676,167
|
|
|
|
|
$
|
5,073,608
|
|
|
|
|
$
|
4,631,369
|
|
|
|
|
$
|
3,860,901
|
|
|
|
|
$
|
3,564,539
|
|
|
|
(Dollars in Thousands)
|
Maturing
Within 1 Year |
|
Maturing
1-5 Years |
|
Maturing Over
5 Years |
|
Total
|
||||||||
Commercial and industrial loans
|
$
|
1,156,547
|
|
|
$
|
205,667
|
|
|
$
|
131,279
|
|
|
$
|
1,493,493
|
|
Agriculture production financing and other loans to farmers
|
103,608
|
|
|
16,593
|
|
|
1,556
|
|
|
121,757
|
|
||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Construction
|
554,811
|
|
|
24,609
|
|
|
32,799
|
|
|
612,219
|
|
||||
Commercial and farmland
|
1,282,712
|
|
|
981,013
|
|
|
298,966
|
|
|
2,562,691
|
|
||||
Other commercial loans
|
18,308
|
|
|
60,821
|
|
|
315,662
|
|
|
394,791
|
|
||||
Total
|
$
|
3,115,986
|
|
|
$
|
1,288,703
|
|
|
$
|
780,262
|
|
|
$
|
5,184,951
|
|
(Dollars in Thousands)
|
Maturing
1-5 Years |
|
Maturing Over
5 Years |
||||
Loans maturing after one year with:
|
|
|
|
||||
Fixed rate
|
$
|
828,136
|
|
|
$
|
711,327
|
|
Variable rate
|
460,567
|
|
|
68,935
|
|
||
Total
|
$
|
1,288,703
|
|
|
$
|
780,262
|
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||||||||
(Dollars in Thousands)
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Non-performing assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-accrual loans
|
$
|
28,724
|
|
|
$
|
29,998
|
|
|
$
|
31,389
|
|
|
$
|
48,789
|
|
|
$
|
56,402
|
|
Renegotiated loans
|
1,013
|
|
|
4,747
|
|
|
1,923
|
|
|
1,992
|
|
|
3,048
|
|
|||||
Non-performing loans (NPL)
|
29,737
|
|
|
34,745
|
|
|
33,312
|
|
|
50,781
|
|
|
59,450
|
|
|||||
Other real estate owned
|
10,373
|
|
|
8,966
|
|
|
17,257
|
|
|
19,293
|
|
|
22,246
|
|
|||||
Non-performing assets (NPA)
|
40,110
|
|
|
43,711
|
|
|
50,569
|
|
|
70,074
|
|
|
81,696
|
|
|||||
90+ days delinquent and still accruing
|
924
|
|
|
112
|
|
|
907
|
|
|
4,663
|
|
|
1,350
|
|
|||||
NPAs & 90+ days delinquent
|
$
|
41,034
|
|
|
$
|
43,823
|
|
|
$
|
51,476
|
|
|
$
|
74,737
|
|
|
$
|
83,046
|
|
Impaired loans
|
$
|
52,687
|
|
|
$
|
72,050
|
|
|
$
|
97,527
|
|
|
$
|
116,223
|
|
|
$
|
119,755
|
|
(Dollars in Thousands)
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Allowance for loans losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balances, January 1
|
$
|
66,037
|
|
|
$
|
62,453
|
|
|
$
|
63,964
|
|
|
$
|
67,870
|
|
|
$
|
69,366
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
(1)
|
1,383
|
|
|
2,464
|
|
|
2,356
|
|
|
7,246
|
|
|
6,117
|
|
|||||
Commercial real estate
(2)
|
1,737
|
|
|
2,408
|
|
|
1,437
|
|
|
6,608
|
|
|
7,493
|
|
|||||
Consumer
|
593
|
|
|
567
|
|
|
620
|
|
|
657
|
|
|
623
|
|
|||||
Residential
|
1,315
|
|
|
1,990
|
|
|
3,859
|
|
|
2,869
|
|
|
3,886
|
|
|||||
Finance leases
|
|
|
|
|
|
|
|
|
2
|
|
|
15
|
|
||||||
Total Charge-offs
|
5,028
|
|
|
7,429
|
|
|
8,272
|
|
|
17,382
|
|
|
18,134
|
|
|||||
Recoveries:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
(3)
|
1,590
|
|
|
1,806
|
|
|
1,911
|
|
|
5,435
|
|
|
4,586
|
|
|||||
Commercial real estate
(4)
|
2,260
|
|
|
2,090
|
|
|
2,545
|
|
|
3,297
|
|
|
3,552
|
|
|||||
Consumer
|
324
|
|
|
369
|
|
|
352
|
|
|
377
|
|
|
556
|
|
|||||
Residential
|
706
|
|
|
1,091
|
|
|
1,536
|
|
|
1,783
|
|
|
1,292
|
|
|||||
Finance leases
|
|
|
|
|
|
|
|
|
24
|
|
|
4
|
|
||||||
Total Recoveries
|
4,880
|
|
|
5,356
|
|
|
6,344
|
|
|
10,916
|
|
|
9,990
|
|
|||||
Net Charge-offs
|
148
|
|
|
2,073
|
|
|
1,928
|
|
|
6,466
|
|
|
8,144
|
|
|||||
Provisions for loan losses
|
9,143
|
|
|
5,657
|
|
|
417
|
|
|
2,560
|
|
|
6,648
|
|
|||||
Balance at December 31
|
$
|
75,032
|
|
|
$
|
66,037
|
|
|
$
|
62,453
|
|
|
$
|
63,964
|
|
|
$
|
67,870
|
|
Ratio of net charge-offs during the period to average loans outstanding during the period
|
0.00
|
%
|
|
0.04
|
%
|
|
0.05
|
%
|
|
0.17
|
%
|
|
0.27
|
%
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|||||||||||||||||||||||||
(Dollars in Thousands)
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|||||||||||||||
Balance at December 31:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial
|
$
|
30,418
|
|
|
29.8
|
%
|
|
$
|
27,696
|
|
|
29.8
|
%
|
|
$
|
26,478
|
|
|
28.0
|
%
|
|
$
|
28,824
|
|
|
26.4
|
%
|
|
$
|
27,176
|
|
|
24.8
|
%
|
Commercial real estate
|
27,343
|
|
|
47.0
|
|
|
23,661
|
|
|
46.2
|
|
|
22,145
|
|
|
46.2
|
|
|
19,327
|
|
|
47.9
|
|
|
23,102
|
|
|
49.3
|
|
|||||
Consumer
|
3,732
|
|
|
1.3
|
|
|
2,923
|
|
|
1.5
|
|
|
2,689
|
|
|
1.6
|
|
|
2,658
|
|
|
1.9
|
|
|
2,515
|
|
|
1.9
|
|
|||||
Residential
|
13,537
|
|
|
21.9
|
|
|
11,755
|
|
|
22.5
|
|
|
11,139
|
|
|
24.2
|
|
|
13,152
|
|
|
23.8
|
|
|
15,077
|
|
|
24.0
|
|
|||||
Finance leases
|
2
|
|
|
|
|
|
2
|
|
|
|
|
|
2
|
|
|
|
|
|
3
|
|
|
|
|
|
|
|
|
|
||||||
Totals
|
$
|
75,032
|
|
|
100.0
|
%
|
|
$
|
66,037
|
|
|
100.0
|
%
|
|
$
|
62,453
|
|
|
100.0
|
%
|
|
$
|
63,964
|
|
|
100.0
|
%
|
|
$
|
67,870
|
|
|
100.0
|
%
|
(Dollars in Thousands) |
Maturing 3
Months or Less |
|
Maturing 3-6
Months |
|
Maturing 6-12
Months |
|
Maturing Over
12 Months |
|
Total
|
||||||||||
Certificates of deposit and other time deposits
|
$
|
72,334
|
|
|
$
|
47,826
|
|
|
$
|
221,651
|
|
|
$
|
127,084
|
|
|
$
|
468,895
|
|
Percent
|
16
|
%
|
|
10
|
%
|
|
47
|
%
|
|
27
|
%
|
|
100
|
%
|
(Dollars in Thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Balance at December 31:
|
|
|
|
|
|
||||||
Federal funds purchased
|
$
|
144,038
|
|
|
$
|
120,349
|
|
|
$
|
49,721
|
|
Securities sold under repurchase agreements (short-term portion)
|
136,623
|
|
|
146,480
|
|
|
155,325
|
|
|||
Federal Home Loan Bank advances (short-term portion)
|
171,391
|
|
|
167,068
|
|
|
91,441
|
|
|||
Total short-term borrowings
|
$
|
452,052
|
|
|
$
|
433,897
|
|
|
$
|
296,487
|
|
(Dollars in Thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Weighted Average Interest Rate on Outstanding Balance at December 31:
|
|
|
|
|
|
||||||
Federal funds purchased
|
0.9
|
%
|
|
0.7
|
%
|
|
0.5
|
%
|
|||
Securities sold under repurchase agreements (short-term portion)
|
0.4
|
%
|
|
0.3
|
%
|
|
0.3
|
%
|
|||
Federal Home Loan Bank advances (short-term portion)
|
1.5
|
%
|
|
0.9
|
%
|
|
1.1
|
%
|
|||
Total short-term borrowings
|
0.9
|
%
|
|
0.6
|
%
|
|
0.6
|
%
|
|||
Weighted Average Interest Rate During the Year:
|
|
|
|
|
|
||||||
Federal funds purchased
|
1.2
|
%
|
|
0.7
|
%
|
|
0.4
|
%
|
|||
Securities sold under repurchase agreements (short-term portion)
|
0.4
|
%
|
|
0.3
|
%
|
|
0.3
|
%
|
|||
Federal Home Loan Bank advances (short-term portion)
|
1.3
|
%
|
|
1.5
|
%
|
|
1.1
|
%
|
|||
Total short-term borrowings
|
0.9
|
%
|
|
0.6
|
%
|
|
0.5
|
%
|
|||
Highest Amount Outstanding at Any Month End During the Year:
|
|
|
|
|
|
||||||
Federal funds purchased
|
$
|
144,038
|
|
|
$
|
120,349
|
|
|
$
|
101,249
|
|
Securities sold under repurchase agreements (short-term portion)
|
145,883
|
|
|
158,185
|
|
|
163,128
|
|
|||
Federal Home Loan Bank advances (short-term portion)
|
207,061
|
|
|
167,068
|
|
|
128,557
|
|
|||
Total short-term borrowings
|
$
|
496,982
|
|
|
$
|
445,602
|
|
|
$
|
392,934
|
|
Average Amount Outstanding During the year:
|
|
|
|
|
|
||||||
Federal funds purchased
|
$
|
47,078
|
|
|
$
|
15,387
|
|
|
$
|
20,767
|
|
Securities sold under repurchase agreements (short-term portion)
|
134,401
|
|
|
145,379
|
|
|
143,491
|
|
|||
Federal Home Loan Bank advances (short-term portion)
|
152,452
|
|
|
65,789
|
|
|
62,471
|
|
|||
Total short-term borrowings
|
$
|
333,931
|
|
|
$
|
226,555
|
|
|
$
|
226,729
|
|
•
|
The Corporation’s business and financial results are significantly affected by general business and economic conditions.
|
•
|
Changes in the domestic interest rate environment could reduce the Corporation’s net interest income as well as the valuation of assets and liabilities.
|
•
|
Changes in the laws, regulations and policies governing banks and financial services companies could alter the Corporation’s business environment and adversely affect operations.
|
•
|
The Corporation may be subject to heightened regulatory requirements when the Corporation exceeds $10 billion in assets.
|
•
|
Our FDIC insurance premiums may increase, and special assessments could be made, which might negatively impact our results of operations.
|
•
|
The banking and financial services industry is highly competitive, and competitive pressures could intensify and adversely affect the Corporation’s financial results.
|
•
|
The Corporation’s allowance for loan losses may not be adequate to cover actual losses.
|
•
|
The Corporation may suffer losses in its loan portfolio despite its underwriting practices.
|
•
|
The Corporation's wholesale funding sources may prove insufficient to replace deposits or support future growth.
|
•
|
The Corporation relies on dividends from its subsidiaries for its liquidity needs.
|
•
|
Acquisitions may not produce revenue enhancements or cost savings at levels or within timeframes originally anticipated and may result in unforeseen integration difficulties.
|
•
|
The Corporation faces operational risks because the nature of the financial services business involves a high volume of transactions.
|
•
|
A disaster, natural or otherwise, acts of terrorism and political or military actions taken by the United States or other governments could adversely affect the Corporation’s business, directly or indirectly.
|
•
|
Cyber incidents and other security breaches at the Corporation, its service providers or counterparties, or in the business community or markets may negatively impact the Corporation’s business or performance.
|
•
|
The Corporation continually encounters technological change.
|
•
|
The Corporation’s reported financial results depend on management’s selection of accounting methods and certain assumptions and estimates.
|
•
|
A write-down of all or part of the Corporation’s goodwill could materially reduce its net income and net worth.
|
•
|
Changes in accounting standards could materially impact the Corporation’s financial statements.
|
•
|
Changes in tax legislation could materially impact the Corporation’s business and financial results.
|
•
|
Significant legal actions could subject the Corporation to substantial uninsured liabilities.
|
•
|
Negative publicity could damage the Corporation’s reputation and adversely impact its business and financial results.
|
•
|
The Corporation may not be able to pay dividends in the future in accordance with past practice.
|
•
|
The Corporation’s stock price can be volatile.
|
|
|
|
|
Period Ending
|
|
|
||||||||||||||||||
Index
|
|
12/31/2012
|
|
|
12/31/2013
|
|
|
12/31/2014
|
|
|
12/31/2015
|
|
|
12/31/2016
|
|
|
12/31/2017
|
|
||||||
First Merchants Corporation
|
|
$
|
100.00
|
|
|
$
|
154.69
|
|
|
$
|
157.05
|
|
|
$
|
178.39
|
|
|
$
|
269.47
|
|
|
$
|
306.16
|
|
Russell 2000
|
|
100.00
|
|
|
138.82
|
|
|
145.62
|
|
|
139.19
|
|
|
168.85
|
|
|
193.58
|
|
||||||
SNL Bank $1B-$5B
|
|
100.00
|
|
|
145.41
|
|
|
152.04
|
|
|
170.20
|
|
|
244.85
|
|
|
261.04
|
|
||||||
SNL Bank $5B-$10B
|
|
100.00
|
|
|
154.28
|
|
|
158.92
|
|
|
181.04
|
|
|
259.37
|
|
|
258.40
|
|
|
|
Price Per Share
|
|
|
|
|
||||||||||||||||||
|
|
HIGH
|
|
LOW
|
|
Dividends Declared
(1)
|
||||||||||||||||||
Quarter
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||
First quarter
|
|
$
|
42.17
|
|
|
$
|
25.27
|
|
|
$
|
35.26
|
|
|
$
|
21.10
|
|
|
$
|
0.15
|
|
|
$
|
0.11
|
|
Second quarter
|
|
43.48
|
|
|
26.55
|
|
|
37.03
|
|
|
22.63
|
|
|
0.18
|
|
|
0.14
|
|
||||||
Third quarter
|
|
43.33
|
|
|
27.42
|
|
|
37.09
|
|
|
23.89
|
|
|
0.18
|
|
|
0.14
|
|
||||||
Fourth quarter
|
|
45.42
|
|
|
38.02
|
|
|
37.60
|
|
|
25.84
|
|
|
0.18
|
|
|
0.15
|
|
Period
|
|
Total Number
of Shares Purchased |
|
Average
Price Paid per Share |
|
Total Number of Shares
Purchased as part of Publicly announced Plans or Programs |
|
Maximum Number of Shares
that may yet be Purchased Under the Plans or Programs |
||
October, 2017
|
|
358
|
|
|
$43.19
|
|
|
|
|
|
November, 2017
|
|
222
|
|
0.03253
|
|
$43.89
|
|
|
|
|
December, 2017
|
|
|
|
|
|
|
|
|
Plan Category
|
|
Number of securities to be
issued upon exercise of outstanding options, warrants and rights |
|
Weighted-average
exercised price of outstanding options, warrants and rights |
|
Number of securities remaining
available for future issuance under equity compensations plans (excluding securities reflected in first column) |
||||
Equity compensation plans approved by stockholders
|
|
152,652
|
|
|
$
|
16.70
|
|
|
419,173
|
|
Total
|
|
152,652
|
|
|
$
|
16.70
|
|
|
419,173
|
|
(Dollars in Thousands, Except Share Data)
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Operations
(1) (2) (3) (4) (5) (6)
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income fully taxable equivalent (FTE) basis
|
$
|
294,554
|
|
|
$
|
240,014
|
|
|
$
|
207,379
|
|
|
$
|
194,958
|
|
|
$
|
160,308
|
|
Less tax equivalent adjustment
|
17,270
|
|
|
13,541
|
|
|
10,975
|
|
|
7,921
|
|
|
6,043
|
|
|||||
Net interest income
|
277,284
|
|
|
226,473
|
|
|
196,404
|
|
|
187,037
|
|
|
154,265
|
|
|||||
Provision for loan losses
|
9,143
|
|
|
5,657
|
|
|
417
|
|
|
2,560
|
|
|
6,648
|
|
|||||
Net interest income after provision for loan losses
|
268,141
|
|
|
220,816
|
|
|
195,987
|
|
|
184,477
|
|
|
147,617
|
|
|||||
Total other income
|
71,009
|
|
|
65,203
|
|
|
69,868
|
|
|
61,816
|
|
|
51,831
|
|
|||||
Total other expenses
|
205,556
|
|
|
177,359
|
|
|
174,806
|
|
|
164,008
|
|
|
139,034
|
|
|||||
Income before income tax expense
|
133,594
|
|
|
108,660
|
|
|
91,049
|
|
|
82,285
|
|
|
60,414
|
|
|||||
Income tax expense
|
37,524
|
|
|
27,609
|
|
|
25,665
|
|
|
22,123
|
|
|
15,884
|
|
|||||
Net income
|
96,070
|
|
|
81,051
|
|
|
65,384
|
|
|
60,162
|
|
|
44,530
|
|
|||||
Preferred stock dividends and discount accretion
|
|
|
|
|
|
|
|
|
|
|
(2,380
|
)
|
|||||||
Net income available to common stockholders
|
$
|
96,070
|
|
|
$
|
81,051
|
|
|
$
|
65,384
|
|
|
$
|
60,162
|
|
|
$
|
42,150
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Per Share Data
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic net income available to common stockholders
|
$
|
2.13
|
|
|
$
|
1.99
|
|
|
$
|
1.73
|
|
|
$
|
1.66
|
|
|
$
|
1.42
|
|
Diluted net income available to common stockholders
|
2.12
|
|
|
1.98
|
|
|
1.72
|
|
|
1.65
|
|
|
1.41
|
|
|||||
Cash dividends paid - common
|
0.69
|
|
|
0.54
|
|
|
0.41
|
|
|
0.29
|
|
|
0.18
|
|
|||||
December 31 book value - common
|
26.51
|
|
|
22.04
|
|
|
20.91
|
|
|
19.29
|
|
|
17.67
|
|
|||||
December 31 tangible book value - common
(7)
|
16.96
|
|
|
15.85
|
|
|
14.68
|
|
|
13.65
|
|
|
12.17
|
|
|||||
December 31 market value (bid price) - common
|
42.06
|
|
|
37.65
|
|
|
25.42
|
|
|
22.75
|
|
|
22.72
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Average Balances
(1) (2) (3) (4) (5) (6)
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
8,196,229
|
|
|
$
|
6,899,265
|
|
|
$
|
6,085,687
|
|
|
$
|
5,571,354
|
|
|
$
|
4,455,411
|
|
Total loans
(8)
|
5,881,284
|
|
|
4,814,005
|
|
|
4,179,839
|
|
|
3,730,080
|
|
|
3,008,555
|
|
|||||
Earning assets
|
7,335,702
|
|
|
6,180,050
|
|
|
5,464,829
|
|
|
4,985,338
|
|
|
4,017,247
|
|
|||||
Total deposits
|
6,368,751
|
|
|
5,438,217
|
|
|
4,806,503
|
|
|
4,363,955
|
|
|
3,465,640
|
|
|||||
Total stockholders' equity
|
1,110,524
|
|
|
884,664
|
|
|
753,724
|
|
|
675,295
|
|
|
540,255
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Year-End Balances
(1) (2) (3) (4) (5) (6)
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
9,367,478
|
|
|
$
|
7,211,611
|
|
|
$
|
6,761,003
|
|
|
$
|
5,824,127
|
|
|
$
|
5,437,262
|
|
Total loans
(8)
|
6,758,415
|
|
|
5,142,574
|
|
|
4,703,716
|
|
|
3,932,100
|
|
|
3,637,740
|
|
|||||
Allowance for loan losses
|
75,032
|
|
|
66,037
|
|
|
62,453
|
|
|
63,964
|
|
|
67,870
|
|
|||||
Total deposits
|
7,172,530
|
|
|
5,556,498
|
|
|
5,289,647
|
|
|
4,640,694
|
|
|
4,231,468
|
|
|||||
Total stockholders' equity
|
1,303,463
|
|
|
901,657
|
|
|
850,509
|
|
|
726,827
|
|
|
634,923
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Ratios
(1) (2) (3) (4) (5) (6)
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets
|
1.17
|
%
|
|
1.17
|
%
|
|
1.07
|
%
|
|
1.08
|
%
|
|
0.95
|
%
|
|||||
Return on average stockholders' equity
|
8.65
|
|
|
9.16
|
|
|
8.67
|
|
|
8.91
|
|
|
7.80
|
|
|||||
Average earning assets to average assets
|
89.50
|
|
|
89.58
|
|
|
89.80
|
|
|
89.48
|
|
|
90.17
|
|
|||||
Allowance for loan losses as % of total loans
|
1.11
|
|
|
1.28
|
|
|
1.33
|
|
|
1.63
|
|
|
1.87
|
|
|||||
Dividend payout ratio
|
32.55
|
|
|
27.27
|
|
|
23.84
|
|
|
17.58
|
|
|
12.77
|
|
|||||
Average stockholders' equity to average assets
|
13.55
|
|
|
12.82
|
|
|
12.39
|
|
|
12.12
|
|
|
12.13
|
|
|||||
Tax equivalent yield on earning assets
|
4.53
|
|
|
4.32
|
|
|
4.25
|
|
|
4.35
|
|
|
4.40
|
|
|||||
Cost of supporting liabilities
|
0.51
|
|
|
0.43
|
|
|
0.45
|
|
|
0.44
|
|
|
0.41
|
|
|||||
Net interest margin on earning assets
|
4.02
|
|
|
3.89
|
|
|
3.80
|
|
|
3.91
|
|
|
3.99
|
|
|
Average Balance
|
|
Interest
Income / Expense |
|
Average
Rate |
|
Average Balance
|
|
Interest
Income / Expense |
|
Average
Rate |
|
Average Balance
|
|
Interest
Income / Expense |
|
Average
Rate |
|||||||||||||||
(Dollars in Thousands)
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing deposits
|
$
|
75,417
|
|
|
$
|
736
|
|
|
0.98
|
%
|
|
$
|
69,753
|
|
|
$
|
350
|
|
|
0.50
|
%
|
|
$
|
61,373
|
|
|
$
|
160
|
|
|
0.26
|
%
|
Federal Reserve and Federal Home Loan Bank stock
|
20,921
|
|
|
894
|
|
|
4.27
|
|
|
24,268
|
|
|
1,098
|
|
|
4.52
|
|
|
37,495
|
|
|
1,967
|
|
|
5.25
|
|
||||||
Investment Securities:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Taxable
|
726,004
|
|
|
17,489
|
|
|
2.41
|
|
|
721,689
|
|
|
16,415
|
|
|
2.27
|
|
|
703,019
|
|
|
17,885
|
|
|
2.54
|
|
||||||
Tax-exempt
(2)
|
632,076
|
|
|
32,891
|
|
|
5.20
|
|
|
550,335
|
|
|
28,649
|
|
|
5.21
|
|
|
483,103
|
|
|
26,034
|
|
|
5.39
|
|
||||||
Total investment securities
|
1,358,080
|
|
|
50,380
|
|
|
3.71
|
|
|
1,272,024
|
|
|
45,064
|
|
|
3.54
|
|
|
1,186,122
|
|
|
43,919
|
|
|
3.70
|
|
||||||
Loans held for sale
|
7,707
|
|
|
462
|
|
|
5.99
|
|
|
4,050
|
|
|
372
|
|
|
9.19
|
|
|
3,725
|
|
|
475
|
|
|
12.75
|
|
||||||
Loans:
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial
|
4,267,651
|
|
|
204,771
|
|
|
4.80
|
|
|
3,541,098
|
|
|
162,848
|
|
|
4.60
|
|
|
3,187,239
|
|
|
142,696
|
|
|
4.48
|
|
||||||
Real estate mortgage
|
679,284
|
|
|
30,267
|
|
|
4.46
|
|
|
566,050
|
|
|
25,156
|
|
|
4.44
|
|
|
457,013
|
|
|
19,457
|
|
|
4.26
|
|
||||||
Installment
|
573,100
|
|
|
28,204
|
|
|
4.92
|
|
|
485,111
|
|
|
21,926
|
|
|
4.52
|
|
|
406,163
|
|
|
18,177
|
|
|
4.48
|
|
||||||
Tax-exempt
(2)
|
353,542
|
|
|
16,452
|
|
|
4.65
|
|
|
217,696
|
|
|
10,039
|
|
|
4.61
|
|
|
125,699
|
|
|
5,322
|
|
|
4.23
|
|
||||||
Total loans
|
5,881,284
|
|
|
280,156
|
|
|
4.76
|
|
|
4,814,005
|
|
|
220,341
|
|
|
4.58
|
|
|
4,179,839
|
|
|
186,127
|
|
|
4.45
|
|
||||||
Total earning assets
|
7,335,702
|
|
|
332,166
|
|
|
4.53
|
%
|
|
6,180,050
|
|
|
266,853
|
|
|
4.32
|
%
|
|
5,464,829
|
|
|
232,173
|
|
|
4.25
|
%
|
||||||
Net unrealized gain on securities available for sale
|
4,360
|
|
|
|
|
|
|
9,969
|
|
|
|
|
|
|
11,800
|
|
|
|
|
|
||||||||||||
Allowance for loan losses
|
(70,380
|
)
|
|
|
|
|
|
(62,976
|
)
|
|
|
|
|
|
(62,975
|
)
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
142,503
|
|
|
|
|
|
|
105,443
|
|
|
|
|
|
|
98,051
|
|
|
|
|
|
||||||||||||
Premises and equipment
|
97,446
|
|
|
|
|
|
|
96,023
|
|
|
|
|
|
|
82,710
|
|
|
|
|
|
||||||||||||
Other assets
|
686,598
|
|
|
|
|
|
|
570,756
|
|
|
|
|
|
|
491,272
|
|
|
|
|
|
||||||||||||
Total Assets
|
$
|
8,196,229
|
|
|
|
|
|
|
$
|
6,899,265
|
|
|
|
|
|
|
$
|
6,085,687
|
|
|
|
|
|
|||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing accounts
|
$
|
1,730,272
|
|
|
$
|
5,817
|
|
|
0.34
|
%
|
|
$
|
1,427,535
|
|
|
$
|
2,579
|
|
|
0.18
|
%
|
|
$
|
1,109,829
|
|
|
$
|
1,374
|
|
|
0.12
|
%
|
Money market deposit accounts
|
938,959
|
|
|
2,788
|
|
|
0.30
|
|
|
825,681
|
|
|
1,705
|
|
|
0.21
|
|
|
840,084
|
|
|
1,768
|
|
|
0.21
|
|
||||||
Savings deposits
|
844,825
|
|
|
734
|
|
|
0.09
|
|
|
731,902
|
|
|
618
|
|
|
0.08
|
|
|
614,675
|
|
|
672
|
|
|
0.11
|
|
||||||
Certificates and other time deposits
|
1,339,866
|
|
|
14,467
|
|
|
1.08
|
|
|
1,151,700
|
|
|
11,012
|
|
|
0.96
|
|
|
1,121,651
|
|
|
11,041
|
|
|
0.98
|
|
||||||
Total interest-bearing deposits
|
4,853,922
|
|
|
23,806
|
|
|
0.49
|
|
|
4,136,818
|
|
|
15,914
|
|
|
0.38
|
|
|
3,686,239
|
|
|
14,855
|
|
|
0.40
|
|
||||||
Borrowings
|
664,045
|
|
|
13,806
|
|
|
2.08
|
|
|
512,356
|
|
|
10,925
|
|
|
2.13
|
|
|
480,794
|
|
|
9,939
|
|
|
2.07
|
|
||||||
Total interest-bearing liabilities
|
5,517,967
|
|
|
37,612
|
|
|
0.68
|
|
|
4,649,174
|
|
|
26,839
|
|
|
0.58
|
|
|
4,167,033
|
|
|
24,794
|
|
|
0.60
|
|
||||||
Noninterest-bearing deposits
|
1,514,829
|
|
|
|
|
|
|
1,301,399
|
|
|
|
|
|
|
1,120,264
|
|
|
|
|
|
||||||||||||
Other liabilities
|
52,909
|
|
|
|
|
|
|
64,028
|
|
|
|
|
|
|
44,666
|
|
|
|
|
|
||||||||||||
Total Liabilities
|
7,085,705
|
|
|
|
|
|
|
6,014,601
|
|
|
|
|
|
|
5,331,963
|
|
|
|
|
|
||||||||||||
Stockholders' Equity
|
1,110,524
|
|
|
|
|
|
|
884,664
|
|
|
|
|
|
|
753,724
|
|
|
|
|
|
||||||||||||
Total Liabilities and Stockholders' Equity
|
$
|
8,196,229
|
|
|
37,612
|
|
|
|
|
$
|
6,899,265
|
|
|
26,839
|
|
|
|
|
$
|
6,085,687
|
|
|
24,794
|
|
|
|
||||||
Net Interest Income (FTE)
|
|
|
$
|
294,554
|
|
|
|
|
|
|
$
|
240,014
|
|
|
|
|
|
|
$
|
207,379
|
|
|
|
|||||||||
Net Interest Spread (FTE)
|
|
|
|
|
3.85
|
%
|
|
|
|
|
|
3.74
|
%
|
|
|
|
|
|
3.65
|
%
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Interest Margin (FTE):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest Income (FTE) / Average Earning Assets
|
|
|
|
|
4.53
|
%
|
|
|
|
|
|
4.32
|
%
|
|
|
|
|
|
4.25
|
%
|
||||||||||||
Interest Expense / Average Earning Assets
|
|
|
|
|
0.51
|
%
|
|
|
|
|
|
0.43
|
%
|
|
|
|
|
|
0.45
|
%
|
||||||||||||
Net Interest Margin (FTE)
|
|
|
|
|
4.02
|
%
|
|
|
|
|
|
3.89
|
%
|
|
|
|
|
|
3.80
|
%
|
•
|
The sale of FMIG resulted in the elimination of $2.5 million of salaries and employee benefit expenses in 2016.
|
•
|
The C Financial and Ameriana acquisitions resulted in one-time severance expenses of $2.0 million in 2015.
|
•
|
The Corporation elected to terminate a post retirement benefit plan in 2016 which resulted in a $2.2 million curtailment gain recorded as a reduction of salaries and employee benefits expense in 2016.
|
•
|
The additional personnel from the C Financial and Ameriana acquisitions, along with annual and merit increases, resulted in additional salaries and employee benefit expenses in 2016 of $7.3 million when compared to the same period in 2015.
|
|
|
|
|
|
Prompt Corrective Action Thresholds
|
|||||||||||||||
|
Actual
|
|
Adequately Capitalized
|
|
Well Capitalized
|
|||||||||||||||
December 31, 2017
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
Total risk-based capital to risk-weighted assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
First Merchants Corporation
|
$
|
1,048,757
|
|
|
13.69
|
%
|
|
$
|
612,848
|
|
|
8.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
First Merchants Bank
|
1,016,355
|
|
|
13.17
|
|
|
614,477
|
|
|
8.00
|
|
|
$
|
771,847
|
|
|
10.00
|
%
|
||
Tier 1 capital to risk-weighted assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
First Merchants Corporation
|
$
|
908,725
|
|
|
11.86
|
%
|
|
$
|
459,636
|
|
|
6.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
First Merchants Bank
|
941,323
|
|
|
12.20
|
|
|
463,108
|
|
|
6.00
|
|
|
$
|
617,477
|
|
|
8.00
|
%
|
||
Common equity tier 1 capital to risk-weighted assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
First Merchants Corporation
|
$
|
842,806
|
|
|
11.00
|
%
|
|
$
|
344,727
|
|
|
4.50
|
%
|
|
N/A
|
|
|
N/A
|
|
|
First Merchants Bank
|
941,323
|
|
|
12.20
|
|
|
347,331
|
|
|
4.50
|
|
|
$
|
501,700
|
|
|
6.50
|
%
|
||
Tier 1 capital to average assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
First Merchants Corporation
|
$
|
908,725
|
|
|
10.43
|
%
|
|
$
|
348,407
|
|
|
4.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
First Merchants Bank
|
941,323
|
|
|
10.83
|
|
|
347,794
|
|
|
4.00
|
|
|
$
|
434,742
|
|
|
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
|
%
|
||
Common equity tier 1 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
|
%
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||
|
First Merchants Corporation
|
|
First Merchants Bank
|
|
First Merchants Corporation
|
|
First Merchants Bank
|
||||||||
Total Risk-Based Capital
|
|
|
|
|
|
|
|
||||||||
Total Stockholders' Equity (GAAP)
|
$
|
1,303,463
|
|
|
$
|
1,404,303
|
|
|
$
|
901,657
|
|
|
$
|
973,641
|
|
Adjust for Accumulated Other Comprehensive (Income) Loss
(1)
|
3,534
|
|
|
763
|
|
|
13,581
|
|
|
9,701
|
|
||||
Less: Preferred Stock
|
(125
|
)
|
|
(125
|
)
|
|
(125
|
)
|
|
(125
|
)
|
||||
Add: Qualifying Capital Securities
|
65,919
|
|
|
|
|
55,415
|
|
|
|
||||||
Less: Tier 1 Capital Deductions
|
|
|
|
|
(376
|
)
|
|
|
|||||||
Less: Disallowed Goodwill and Intangible Assets
|
(464,066
|
)
|
|
(463,618
|
)
|
|
(249,104
|
)
|
|
(248,656
|
)
|
||||
Less: Disallowed Servicing Assets
|
|
|
|
|
|
|
|
||||||||
Less: Disallowed Deferred Tax Assets
|
|
|
|
|
(564
|
)
|
|
|
|||||||
Total Tier 1 Capital (Regulatory)
|
908,725
|
|
|
941,323
|
|
|
720,484
|
|
|
734,561
|
|
||||
Qualifying Subordinated Debentures
|
65,000
|
|
|
|
|
65,000
|
|
|
|
||||||
Allowance for Loan Losses Includible in Tier 2 Capital
|
75,032
|
|
|
75,032
|
|
|
66,037
|
|
|
66,037
|
|
||||
Total Risk-Based Capital (Regulatory)
|
$
|
1,048,757
|
|
|
$
|
1,016,355
|
|
|
$
|
851,521
|
|
|
$
|
800,598
|
|
|
|
|
|
|
|
|
|
||||||||
Net Risk-Weighted Assets (Regulatory)
|
$
|
7,660,604
|
|
|
$
|
7,718,467
|
|
|
$
|
5,993,381
|
|
|
$
|
6,018,623
|
|
Average Assets
|
$
|
8,710,171
|
|
|
$
|
8,694,838
|
|
|
$
|
6,836,412
|
|
|
$
|
6,811,519
|
|
|
|
|
|
|
|
|
|
||||||||
Total Risk-Based Capital Ratio (Regulatory)
|
13.69
|
%
|
|
13.17
|
%
|
|
14.21
|
%
|
|
13.30
|
%
|
||||
Tier 1 Capital to Risk-Weighted Assets
|
11.86
|
%
|
|
12.20
|
%
|
|
12.02
|
%
|
|
12.20
|
%
|
||||
Tier 1 Capital to Average Assets
|
10.43
|
%
|
|
10.83
|
%
|
|
10.54
|
%
|
|
10.78
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
Common Equity Tier 1 Capital Ratio
|
|
|
|
|
|
|
|
||||||||
Total Tier 1 Capital (Regulatory)
|
$
|
908,725
|
|
|
$
|
941,323
|
|
|
$
|
720,484
|
|
|
$
|
734,561
|
|
Less: Qualified Capital Securities
|
(65,919
|
)
|
|
|
|
(55,415
|
)
|
|
|
||||||
Add: Additional Tier 1 Capital Deductions
|
|
|
|
|
376
|
|
|
|
|||||||
Less: Preferred Stock
|
|
|
|
|
|
|
|
||||||||
Common Equity Tier 1 Capital (Regulatory)
|
$
|
842,806
|
|
|
$
|
941,323
|
|
|
$
|
665,445
|
|
|
$
|
734,561
|
|
|
|
|
|
|
|
|
|
||||||||
Net Risk-Weighted Assets (Regulatory)
|
$
|
7,660,604
|
|
|
$
|
7,718,467
|
|
|
$
|
5,993,381
|
|
|
$
|
6,018,623
|
|
Common Equity Tier 1 Capital Ratio (Regulatory)
|
11.00
|
%
|
|
12.20
|
%
|
|
11.10
|
%
|
|
12.20
|
%
|
|
Tangible Common Equity to Tangible Assets (non-GAAP)
|
||||||
(Shares and Dollars in Thousands, Except Per Share Amounts)
|
December 31, 2017
|
|
December 31, 2016
|
||||
Total Stockholders' Equity (GAAP)
|
$
|
1,303,463
|
|
|
$
|
901,657
|
|
Less: Cumulative preferred stock (GAAP)
|
(125
|
)
|
|
(125
|
)
|
||
Less: Intangible assets (GAAP)
|
(476,503
|
)
|
|
(258,866
|
)
|
||
Tangible common equity (non-GAAP)
|
$
|
826,835
|
|
|
$
|
642,666
|
|
Total assets (GAAP)
|
$
|
9,367,478
|
|
|
$
|
7,211,611
|
|
Less: Intangible assets (GAAP)
|
(476,503
|
)
|
|
(258,866
|
)
|
||
Tangible assets (non-GAAP)
|
$
|
8,890,975
|
|
|
$
|
6,952,745
|
|
Tangible common equity to tangible assets (non-GAAP)
|
9.30
|
%
|
|
9.24
|
%
|
||
|
|
|
|
||||
Tangible common equity (non-GAAP)
|
$
|
826,835
|
|
|
$
|
642,666
|
|
Plus: Tax Benefit of intangibles (non-GAAP)
|
6,789
|
|
|
5,930
|
|
||
Tangible common equity, net of tax (non-GAAP)
|
$
|
833,624
|
|
|
$
|
648,596
|
|
Common Stock outstanding at December 31, 2017
|
49,158
|
|
|
$
|
40,913
|
|
|
December 31 - tangible book value - common (non-GAAP)
|
$
|
16.96
|
|
|
$
|
15.85
|
|
(Dollars in Thousands, Except Per Share Amounts)
|
December 31, 2017
|
|
December 31, 2016
|
||||
Average goodwill (GAAP)
|
$
|
345,491
|
|
|
$
|
244,000
|
|
Average core deposit intangible (GAAP)
|
23,564
|
|
|
16,800
|
|
||
Average deferred tax on CDI (GAAP)
|
(9,050
|
)
|
|
(6,468
|
)
|
||
Intangible adjustment (non-GAAP)
|
$
|
360,005
|
|
|
$
|
254,332
|
|
Average stockholders' equity (GAAP)
|
$
|
1,110,524
|
|
|
$
|
884,664
|
|
Average cumulative preferred stock (GAAP)
|
(125
|
)
|
|
(125
|
)
|
||
Intangible adjustment (non-GAAP)
|
(360,005
|
)
|
|
(254,332
|
)
|
||
Average tangible capital (non-GAAP)
|
$
|
750,394
|
|
|
$
|
630,207
|
|
Average assets (GAAP)
|
$
|
8,196,229
|
|
|
$
|
6,899,265
|
|
Intangible adjustment (non-GAAP)
|
(360,005
|
)
|
|
(254,332
|
)
|
||
Average tangible assets (non-GAAP)
|
$
|
7,836,224
|
|
|
$
|
6,644,933
|
|
Net income available to common stockholders (GAAP)
|
$
|
96,070
|
|
|
$
|
81,051
|
|
CDI amortization, net of tax (GAAP)
|
3,670
|
|
|
2,542
|
|
||
Tangible net income available to common stockholders (non-GAAP)
|
$
|
99,740
|
|
|
$
|
83,593
|
|
Per Share Data:
|
|
|
|
||||
Diluted net income available to common stockholders (GAAP)
|
$
|
2.12
|
|
|
$
|
1.98
|
|
Diluted tangible net income available to common stockholders (non-GAAP)
|
$
|
2.20
|
|
|
$
|
2.04
|
|
Ratios:
|
|
|
|
||||
Return on average GAAP capital (ROE)
|
8.65
|
%
|
|
9.16
|
%
|
||
Return on average tangible capital
|
13.30
|
%
|
|
13.26
|
%
|
||
Return on average assets (ROA)
|
1.17
|
%
|
|
1.17
|
%
|
||
Return on average tangible assets
|
1.27
|
%
|
|
1.26
|
%
|
|
December 31,
|
|
December 31,
|
||||
(Dollars in Thousands)
|
2017
|
|
2016
|
||||
Non-performing assets:
|
|
|
|
||||
Non-accrual loans
|
$
|
28,724
|
|
|
$
|
29,998
|
|
Renegotiated loans
|
1,013
|
|
|
4,747
|
|
||
Non-performing loans (NPL)
|
29,737
|
|
|
34,745
|
|
||
Other real estate owned
|
10,373
|
|
|
8,966
|
|
||
Non-performing assets (NPA)
|
40,110
|
|
|
43,711
|
|
||
90+ days delinquent and still accruing
|
924
|
|
|
112
|
|
||
NPAs & 90+ days delinquent
|
$
|
41,034
|
|
|
$
|
43,823
|
|
Impaired loans (includes substandard, doubtful and loss)
|
$
|
52,687
|
|
|
$
|
72,050
|
|
|
December 31,
|
|
December 31,
|
||||
(Dollars in Thousands)
|
2017
|
|
2016
|
||||
Non-performing assets and 90+ days delinquent:
|
|
|
|
||||
Commercial and industrial loans
|
$
|
3,278
|
|
|
$
|
2,138
|
|
Agricultural production financing and other loans to farmers
|
1,027
|
|
|
1,341
|
|
||
Real estate loans
|
|
|
|
||||
Construction
|
2,980
|
|
|
5,312
|
|
||
Commercial and farmland
|
20,382
|
|
|
22,362
|
|
||
Residential
|
11,051
|
|
|
10,943
|
|
||
Home equity
|
2,239
|
|
|
1,688
|
|
||
Individual's loans for household and other personal expenditures
|
77
|
|
|
39
|
|
||
Non-performing assets plus 90+ days delinquent
|
$
|
41,034
|
|
|
$
|
43,823
|
|
(Dollars in Thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Allowance for loan losses:
|
|
|
|
|
|
||||||
Balance at December 31, 2016
|
$
|
66,037
|
|
|
$
|
62,453
|
|
|
$
|
63,964
|
|
|
|
|
|
|
|
|
|
|
|||
Charge-offs
|
5,028
|
|
|
7,429
|
|
|
8,272
|
|
|||
Recoveries
|
4,880
|
|
|
5,356
|
|
|
6,344
|
|
|||
Net charge-offs
|
148
|
|
|
2,073
|
|
|
1,928
|
|
|||
Provision for loan losses
|
9,143
|
|
|
5,657
|
|
|
417
|
|
|||
Balance at December 31
|
$
|
75,032
|
|
|
$
|
66,037
|
|
|
$
|
62,453
|
|
Ratio of net charge-offs during the period to average loans outstanding during the period
|
0.00
|
%
|
|
0.04
|
%
|
|
0.05
|
%
|
|||
Ratio of allowance to non-accrual loans
|
261.20
|
%
|
|
220.10
|
%
|
|
199.00
|
%
|
(Dollars in Thousands)
|
December 31, 2017
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||
Net charge-offs:
|
|
|
|
|
|
||||||
Commercial and industrial loans
|
$
|
(141
|
)
|
|
$
|
600
|
|
|
$
|
(302
|
)
|
Agricultural production financing and other farm loans
|
(66
|
)
|
|
59
|
|
|
757
|
|
|||
Real estate loans
|
|
|
|
|
|
||||||
Construction
|
(31
|
)
|
|
(11
|
)
|
|
101
|
|
|||
Commercial and farmland
|
(492
|
)
|
|
329
|
|
|
(1,209
|
)
|
|||
Residential
|
162
|
|
|
511
|
|
|
1,298
|
|
|||
Home equity
|
447
|
|
|
388
|
|
|
1,025
|
|
|||
Individuals loans for household and other personal expenditures
|
269
|
|
|
198
|
|
|
268
|
|
|||
Lease financing receivables, net of unearned income
|
|
|
|
|
|
|
|
|
|||
Other commercial loans
|
|
|
|
(1
|
)
|
|
(10
|
)
|
|||
Total net charge-offs
|
$
|
148
|
|
|
$
|
2,073
|
|
|
$
|
1,928
|
|
|
December 31, 2017
|
||||||||||||||||||||||
(Dollars in Thousands)
|
Commercial
|
|
Commercial
Real Estate |
|
Consumer
|
|
Residential
|
|
Finance
Leases |
|
Total
|
||||||||||||
Allowance balances:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
$
|
666
|
|
|
$
|
567
|
|
|
|
|
$
|
404
|
|
|
|
|
$
|
1,637
|
|
||||
Collectively evaluated for impairment
|
29,752
|
|
|
26,776
|
|
|
$
|
3,732
|
|
|
13,133
|
|
|
$
|
2
|
|
|
73,395
|
|
||||
Total allowance for loan losses
|
$
|
30,418
|
|
|
$
|
27,343
|
|
|
$
|
3,732
|
|
|
$
|
13,537
|
|
|
$
|
2
|
|
|
$
|
75,032
|
|
|
December 31, 2016
|
||||||||||||||||||||||
(Dollars in Thousands)
|
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
|
|
||||
Total allowance for loan losses
|
$
|
27,696
|
|
|
$
|
23,661
|
|
|
$
|
2,923
|
|
|
$
|
11,755
|
|
|
$
|
2
|
|
|
$
|
66,037
|
|
|
December 31,
|
||
(Dollars in Thousands)
|
2017
|
||
Amounts of Commitments:
|
|
||
Loan commitments to extend credit
|
$
|
2,482,641
|
|
Standby letters of credit
|
43,526
|
|
|
|
$
|
2,526,167
|
|
(Dollars in Thousands)
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023 and
after |
|
ASC 805 fair value adjustments at acquisition
|
|
Total
|
||||||||||||||||
Operating leases
|
$
|
3,161
|
|
|
$
|
3,611
|
|
|
$
|
3,484
|
|
|
$
|
3,137
|
|
|
$
|
3,090
|
|
|
$
|
15,180
|
|
|
|
|
|
$
|
31,663
|
|
|
Federal funds purchased
|
144,038
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
144,038
|
|
|||||||||||||
Securities sold under repurchase agreements
|
136,623
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
136,623
|
|
||||||||||||
Federal Home Loan Bank advances
|
171,391
|
|
|
121,713
|
|
|
41,273
|
|
|
25,000
|
|
|
20,000
|
|
|
35,000
|
|
|
|
|
|
414,377
|
|
||||||||
Subordinated debentures and term loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
143,430
|
|
|
$
|
(4,081
|
)
|
|
139,349
|
|
||||||||
Total
|
$
|
455,213
|
|
|
$
|
125,324
|
|
|
$
|
44,757
|
|
|
$
|
28,137
|
|
|
$
|
23,090
|
|
|
$
|
193,610
|
|
|
$
|
(4,081
|
)
|
|
$
|
866,050
|
|
|
December 31, 2017
|
||||||||||||||||||
(Dollars in Thousands)
|
1-180 Days
|
|
181-365 Days
|
|
1-5 Years
|
|
Beyond 5 Years
|
|
Total
|
||||||||||
Rate-Sensitive Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits
|
$
|
35,027
|
|
|
|
|
|
|
|
|
$
|
35,027
|
|
||||||
Investment securities
|
71,310
|
|
|
$
|
62,434
|
|
|
$
|
369,851
|
|
|
$
|
1,057,007
|
|
|
1,560,602
|
|
||
Loans
|
3,757,877
|
|
|
359,647
|
|
|
1,475,182
|
|
|
1,090,677
|
|
|
6,683,383
|
|
|||||
Federal Home Loan Bank stock
|
|
|
|
|
23,825
|
|
|
|
|
23,825
|
|
||||||||
Total rate-sensitive assets
|
$
|
3,864,214
|
|
|
$
|
422,081
|
|
|
$
|
1,868,858
|
|
|
$
|
2,147,684
|
|
|
$
|
8,302,837
|
|
Rate-Sensitive Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits
|
$
|
4,316,231
|
|
|
$
|
538,598
|
|
|
$
|
513,150
|
|
|
$
|
42,998
|
|
|
$
|
5,410,977
|
|
Federal funds purchased
|
144,038
|
|
|
|
|
|
|
|
|
|
144,038
|
|
|||||||
Securities sold under repurchase agreements
|
136,623
|
|
|
|
|
|
|
|
|
|
136,623
|
|
|||||||
Federal Home Loan Bank advances
|
202,087
|
|
|
14,442
|
|
|
178,100
|
|
|
19,748
|
|
|
414,377
|
|
|||||
Subordinated debentures and term loans
|
72,322
|
|
|
|
|
|
|
|
67,027
|
|
|
139,349
|
|
||||||
Total rate-sensitive liabilities
|
$
|
4,871,301
|
|
|
$
|
553,040
|
|
|
$
|
691,250
|
|
|
$
|
129,773
|
|
|
$
|
6,245,364
|
|
Interest rate sensitivity gap by period
|
$
|
(1,007,087
|
)
|
|
$
|
(130,959
|
)
|
|
$
|
1,177,608
|
|
|
$
|
2,017,911
|
|
|
|
|
|
Cumulative rate sensitivity gap
|
$
|
(1,007,087
|
)
|
|
$
|
(1,138,046
|
)
|
|
$
|
39,562
|
|
|
$
|
2,057,473
|
|
|
|
||
Cumulative rate sensitivity gap ratio
|
|
|
|
|
|
|
|
|
|
||||||||||
at December 31, 2017
|
79.3
|
%
|
|
79.0
|
%
|
|
100.6
|
%
|
|
132.9
|
%
|
|
|
||||||
at December 31, 2016
|
76.1
|
%
|
|
79.4
|
%
|
|
101.5
|
%
|
|
131.0
|
%
|
|
|
|
|
At December 31, 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
|
|
200
|
|
(100)
|
|
At December 31, 2017
|
||||||||||
|
|
|
RISING
|
|
FALLING
|
||||||
(Dollars in Thousands)
|
Base
|
|
(200 Basis Points)
|
|
(100 Basis Points)
|
||||||
Net Interest Income
|
$
|
311,466
|
|
|
$
|
336,970
|
|
|
$
|
286,477
|
|
Variance from Base
|
|
|
$
|
25,504
|
|
|
$
|
(24,989
|
)
|
||
Percent of Change from Base
|
|
|
|
8.19
|
%
|
|
(8.02
|
)%
|
|
|
At 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
|
|
200
|
|
(92)
|
|
At 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
|
)%
|
|
December 31,
|
|
December 31,
|
||||
(Dollars in Thousands)
|
2017
|
|
2016
|
||||
Interest-bearing time deposits
|
$
|
35,027
|
|
|
$
|
24,459
|
|
Investment securities available for sale
|
999,947
|
|
|
696,862
|
|
||
Investment securities held to maturity
|
560,655
|
|
|
607,643
|
|
||
Loans held for sale
|
7,216
|
|
|
2,929
|
|
||
Loans
|
6,751,199
|
|
|
5,139,645
|
|
||
Federal Home Loan Bank stock
|
23,825
|
|
|
17,964
|
|
||
|
$
|
8,377,869
|
|
|
$
|
6,489,502
|
|
|
December 31,
|
|
December 31,
|
||||
(Dollars in Thousands)
|
2017
|
|
2016
|
||||
Deposits
|
$
|
7,172,530
|
|
|
$
|
5,556,498
|
|
Federal funds purchased
|
144,038
|
|
|
120,349
|
|
||
Securities sold under repurchase agreements
|
136,623
|
|
|
146,480
|
|
||
Federal Home Loan Bank advances
|
414,377
|
|
|
298,923
|
|
||
Subordinated debentures and term loans
|
139,349
|
|
|
128,445
|
|
||
|
$
|
8,006,917
|
|
|
$
|
6,250,695
|
|
|
December 31,
|
|
December 31,
|
||||
(Dollars in Thousands, Except Share Data)
|
2017
|
|
2016
|
||||
ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
154,905
|
|
|
$
|
127,927
|
|
Interest-bearing time deposits
|
35,027
|
|
|
24,459
|
|
||
Investment securities available for sale
|
999,947
|
|
|
696,862
|
|
||
Investment securities held to maturity (fair value of
$568,208
and
$611,933
)
|
560,655
|
|
|
607,643
|
|
||
Loans held for sale
|
7,216
|
|
|
2,929
|
|
||
Loans
|
6,751,199
|
|
|
5,139,645
|
|
||
Less: Allowance for loan losses
|
(75,032
|
)
|
|
(66,037
|
)
|
||
Net loans
|
6,676,167
|
|
|
5,073,608
|
|
||
Premises and equipment
|
95,852
|
|
|
94,432
|
|
||
Federal Home Loan Bank stock
|
23,825
|
|
|
17,964
|
|
||
Interest receivable
|
37,130
|
|
|
26,194
|
|
||
Other intangibles
|
31,148
|
|
|
14,866
|
|
||
Goodwill
|
445,355
|
|
|
244,000
|
|
||
Cash surrender value of life insurance
|
223,557
|
|
|
201,671
|
|
||
Other real estate owned
|
10,373
|
|
|
8,966
|
|
||
Tax asset, deferred and receivable
|
23,983
|
|
|
39,384
|
|
||
Other assets
|
42,338
|
|
|
30,706
|
|
||
TOTAL ASSETS
|
$
|
9,367,478
|
|
|
$
|
7,211,611
|
|
LIABILITIES
|
|
|
|
||||
Deposits:
|
|
|
|
||||
Noninterest-bearing
|
$
|
1,761,553
|
|
|
$
|
1,348,267
|
|
Interest-bearing
|
5,410,977
|
|
|
4,208,231
|
|
||
Total Deposits
|
7,172,530
|
|
|
5,556,498
|
|
||
Borrowings:
|
|
|
|
||||
Federal funds purchased
|
144,038
|
|
|
120,349
|
|
||
Securities sold under repurchase agreements
|
136,623
|
|
|
146,480
|
|
||
Federal Home Loan Bank advances
|
414,377
|
|
|
298,923
|
|
||
Subordinated debentures and term loans
|
139,349
|
|
|
128,445
|
|
||
Total Borrowings
|
834,387
|
|
|
694,197
|
|
||
Interest payable
|
4,390
|
|
|
3,110
|
|
||
Other liabilities
|
52,708
|
|
|
56,149
|
|
||
Total Liabilities
|
8,064,015
|
|
|
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
(1)
|
|
|
|
||||
Issued and outstanding -
49,158,238
and
40,912,697
shares
|
6,145
|
|
|
5,114
|
|
||
Additional paid-in capital
|
834,870
|
|
|
509,018
|
|
||
Retained earnings
|
465,231
|
|
|
400,981
|
|
||
Accumulated other comprehensive loss
|
(2,908
|
)
|
|
(13,581
|
)
|
||
Total Stockholders' Equity
|
1,303,463
|
|
|
901,657
|
|
||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
9,367,478
|
|
|
$
|
7,211,611
|
|
|
|
|
|
||||
(1)
On May 1, 2017, the shareholders of First Merchants Corporation approved an amendment to the Articles of Incorporation to increase the number of shares of common stock authorized to issue from 50,000,000 to 100,000,000 shares.
|
(Dollars in Thousands, Except Share Data)
|
|
December 31,
2017 |
|
December 31,
2016 |
|
December 31,
2015 |
||||||
INTEREST INCOME
|
|
|
|
|
|
|
||||||
Loans receivable:
|
|
|
|
|
|
|
||||||
Taxable
|
|
$
|
263,704
|
|
|
$
|
210,302
|
|
|
$
|
180,805
|
|
Tax exempt
|
|
10,694
|
|
|
6,525
|
|
|
3,459
|
|
|||
Investment securities:
|
|
|
|
|
|
|
||||||
Taxable
|
|
17,489
|
|
|
16,415
|
|
|
17,885
|
|
|||
Tax exempt
|
|
21,379
|
|
|
18,622
|
|
|
16,922
|
|
|||
Deposits with financial institutions
|
|
736
|
|
|
350
|
|
|
160
|
|
|||
Federal Reserve and Federal Home Loan Bank stock
|
|
894
|
|
|
1,098
|
|
|
1,967
|
|
|||
Total Interest Income
|
|
314,896
|
|
|
253,312
|
|
|
221,198
|
|
|||
INTEREST EXPENSE
|
|
|
|
|
|
|
||||||
Deposits
|
|
23,806
|
|
|
15,914
|
|
|
14,855
|
|
|||
Federal funds purchased
|
|
561
|
|
|
102
|
|
|
74
|
|
|||
Securities sold under repurchase agreements
|
|
477
|
|
|
374
|
|
|
368
|
|
|||
Federal Home Loan Bank advances
|
|
5,196
|
|
|
3,264
|
|
|
2,836
|
|
|||
Subordinated debentures and term loans
|
|
7,572
|
|
|
7,185
|
|
|
6,661
|
|
|||
Total Interest Expense
|
|
37,612
|
|
|
26,839
|
|
|
24,794
|
|
|||
NET INTEREST INCOME
|
|
277,284
|
|
|
226,473
|
|
|
196,404
|
|
|||
Provision for loan losses
|
|
9,143
|
|
|
5,657
|
|
|
417
|
|
|||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
|
|
268,141
|
|
|
220,816
|
|
|
195,987
|
|
|||
OTHER INCOME
|
|
|
|
|
|
|
||||||
Service charges on deposit accounts
|
|
18,722
|
|
|
17,762
|
|
|
16,201
|
|
|||
Fiduciary activities
|
|
11,589
|
|
|
9,818
|
|
|
9,196
|
|
|||
Other customer fees
|
|
20,956
|
|
|
19,315
|
|
|
16,959
|
|
|||
Commission income
|
|
|
|
|
|
4,147
|
|
|||||
Increase in cash surrender value of life insurance
|
|
3,906
|
|
|
3,630
|
|
|
2,919
|
|
|||
Gains on life insurance benefits
|
|
2,671
|
|
|
643
|
|
|
|
||||
Net gains and fees on sales of loans
|
|
7,564
|
|
|
7,052
|
|
|
6,483
|
|
|||
Net realized gains on sales of available for sale securities
|
|
2,631
|
|
|
3,389
|
|
|
2,670
|
|
|||
Gain on sale of insurance subsidiary
|
|
|
|
|
|
8,265
|
|
|||||
Gain on cancellation of subordinated debentures
|
|
|
|
|
|
1,250
|
|
|||||
Other income
|
|
2,970
|
|
|
3,594
|
|
|
1,778
|
|
|||
Total Other Income
|
|
71,009
|
|
|
65,203
|
|
|
69,868
|
|
|||
OTHER EXPENSES
|
|
|
|
|
|
|
||||||
Salaries and employee benefits
|
|
119,812
|
|
|
102,552
|
|
|
101,908
|
|
|||
Net occupancy
|
|
16,976
|
|
|
16,997
|
|
|
14,668
|
|
|||
Equipment
|
|
13,090
|
|
|
12,497
|
|
|
10,787
|
|
|||
Marketing
|
|
3,739
|
|
|
3,008
|
|
|
3,493
|
|
|||
Outside data processing fees
|
|
12,242
|
|
|
9,148
|
|
|
7,109
|
|
|||
Printing and office supplies
|
|
1,283
|
|
|
1,348
|
|
|
1,353
|
|
|||
Intangible asset amortization
|
|
5,647
|
|
|
3,910
|
|
|
2,835
|
|
|||
FDIC assessments
|
|
2,564
|
|
|
3,036
|
|
|
3,655
|
|
|||
Other real estate owned and foreclosure expenses
|
|
1,903
|
|
|
2,877
|
|
|
3,956
|
|
|||
Professional and other outside services
|
|
12,757
|
|
|
6,516
|
|
|
9,855
|
|
|||
Other expenses
|
|
15,543
|
|
|
15,470
|
|
|
15,187
|
|
|||
Total Other Expenses
|
|
205,556
|
|
|
177,359
|
|
|
174,806
|
|
|||
INCOME BEFORE INCOME TAX
|
|
133,594
|
|
|
108,660
|
|
|
91,049
|
|
|||
Income tax expense
|
|
37,524
|
|
|
27,609
|
|
|
25,665
|
|
|||
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS
|
|
$
|
96,070
|
|
|
$
|
81,051
|
|
|
65,384
|
|
|
|
|
|
|
|
|
|
||||||
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS PER SHARE DATA:
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
2.13
|
|
|
$
|
1.99
|
|
|
$
|
1.73
|
|
Diluted
|
|
$
|
2.12
|
|
|
$
|
1.98
|
|
|
$
|
1.72
|
|
(Dollars in Thousands)
|
December 31, 2017
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||
Net income
|
$
|
96,070
|
|
|
$
|
81,051
|
|
|
$
|
65,384
|
|
Other comprehensive income (loss) net of tax:
|
|
|
|
|
|
||||||
Unrealized holding gain (loss) on securities available for sale arising during the period,
net of tax of $5,193, $4,893, and $20 |
9,645
|
|
|
(9,087
|
)
|
|
(37
|
)
|
|||
Unrealized gain (loss) on cash flow hedges arising during the period, net of tax of $4, $128, and $588
|
9
|
|
|
(240
|
)
|
|
(1,093
|
)
|
|||
Reclassification adjustment for net gains included in net income net of tax of $576, $749, and $435
|
(1,070
|
)
|
|
(1,390
|
)
|
|
(808
|
)
|
|||
Defined benefit pension plans, net of tax of $1,125, $809, and $1,187
|
|
|
|
|
|
|
|
|
|||
Net gain (loss) arising during period
|
2,686
|
|
|
(470
|
)
|
|
2,404
|
|
|||
Amortization of prior service cost
|
(597
|
)
|
|
(1,032
|
)
|
|
(198
|
)
|
|||
|
10,673
|
|
|
(12,219
|
)
|
|
268
|
|
|||
Comprehensive income
|
$
|
106,743
|
|
|
$
|
68,832
|
|
|
$
|
65,652
|
|
|
Preferred
|
|
Common Stock
|
|
|
|
|
|
|
|
|
||||||||||||||||||
(Dollars in Thousands, Except Share Data)
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Additional Paid in Capital
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Total
|
||||||||||||||
Balances, December 31, 2014
|
125
|
|
|
$
|
125
|
|
|
37,669,948
|
|
|
$
|
4,709
|
|
|
$
|
431,220
|
|
|
$
|
292,403
|
|
|
$
|
(1,630
|
)
|
|
$
|
726,827
|
|
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net income
|
|
|
|
|
|
|
|
|
|
|
65,384
|
|
|
|
|
65,384
|
|
||||||||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
268
|
|
|
268
|
|
||||||||||||
Cash dividends on common stock ($.41 per share)
|
|
|
|
|
|
|
|
|
|
|
(15,654
|
)
|
|
|
|
(15,654
|
)
|
||||||||||||
Issuance of common stock related to acquisition
|
|
|
|
|
2,769,568
|
|
|
346
|
|
|
70,056
|
|
|
|
|
|
|
70,402
|
|
||||||||||
Share-based compensation
|
|
|
|
|
149,577
|
|
|
19
|
|
|
2,251
|
|
|
|
|
|
|
2,270
|
|
||||||||||
Stock issued under employee benefit plans
|
|
|
|
|
22,074
|
|
|
3
|
|
|
457
|
|
|
|
|
|
|
460
|
|
||||||||||
Stock issued under dividend reinvestment and stock purchase plan
|
|
|
|
|
26,375
|
|
|
3
|
|
|
658
|
|
|
|
|
|
|
661
|
|
||||||||||
Stock options exercised
|
|
|
|
|
96,066
|
|
|
12
|
|
|
1,519
|
|
|
|
|
|
|
1,531
|
|
||||||||||
Stock redeemed
|
|
|
|
|
(69,349
|
)
|
|
(9
|
)
|
|
(1,631
|
)
|
|
|
|
|
|
(1,640
|
)
|
||||||||||
Balances, December 31, 2015
|
125
|
|
|
125
|
|
|
40,664,259
|
|
|
5,083
|
|
|
504,530
|
|
|
342,133
|
|
|
(1,362
|
)
|
|
850,509
|
|
||||||
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net income
|
|
|
|
|
|
|
|
|
|
|
81,051
|
|
|
|
|
81,051
|
|
||||||||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
(12,219
|
)
|
|
(12,219
|
)
|
||||||||||||
Cash dividends on common stock ($.54 per share)
|
|
|
|
|
|
|
|
|
|
|
(22,203
|
)
|
|
|
|
(22,203
|
)
|
||||||||||||
Share-based compensation
|
|
|
|
|
141,126
|
|
|
17
|
|
|
2,583
|
|
|
|
|
|
|
2,600
|
|
||||||||||
Stock issued under employee benefit plans
|
|
|
|
|
20,545
|
|
|
3
|
|
|
459
|
|
|
|
|
|
|
462
|
|
||||||||||
Stock issued under dividend reinvestment and stock purchase plan
|
|
|
|
|
30,297
|
|
|
4
|
|
|
831
|
|
|
|
|
|
|
835
|
|
||||||||||
Stock options exercised
|
|
|
|
|
128,848
|
|
|
16
|
|
|
2,586
|
|
|
|
|
|
|
2,602
|
|
||||||||||
Stock redeemed
|
|
|
|
|
(72,378
|
)
|
|
(9
|
)
|
|
(1,971
|
)
|
|
|
|
|
|
(1,980
|
)
|
||||||||||
Balances, December 31, 2016
|
125
|
|
|
125
|
|
|
40,912,697
|
|
|
5,114
|
|
|
509,018
|
|
|
400,981
|
|
|
(13,581
|
)
|
|
901,657
|
|
||||||
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net income
|
|
|
|
|
|
|
|
|
|
|
96,070
|
|
|
|
|
96,070
|
|
||||||||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
10,673
|
|
|
10,673
|
|
||||||||||||
Cash dividends on common stock ($.69 per share)
|
|
|
|
|
|
|
|
|
|
|
(31,820
|
)
|
|
|
|
(31,820
|
)
|
||||||||||||
Issuance of common stock related to acquisition
|
|
|
|
|
8,044,446
|
|
|
1,006
|
|
|
320,425
|
|
|
|
|
|
|
321,431
|
|
||||||||||
Share-based compensation
|
|
|
|
|
89,362
|
|
|
11
|
|
|
2,816
|
|
|
|
|
|
|
2,827
|
|
||||||||||
Stock issued under employee benefit plans
|
|
|
|
|
14,948
|
|
|
2
|
|
|
517
|
|
|
|
|
|
|
519
|
|
||||||||||
Stock issued under dividend reinvestment and stock purchase plan
|
|
|
|
|
24,058
|
|
|
3
|
|
|
988
|
|
|
|
|
|
|
991
|
|
||||||||||
Stock options exercised
|
|
|
|
|
104,748
|
|
|
13
|
|
|
2,385
|
|
|
|
|
|
|
2,398
|
|
||||||||||
Stock redeemed
|
|
|
|
|
(32,021
|
)
|
|
(4
|
)
|
|
(1,279
|
)
|
|
|
|
|
|
(1,283
|
)
|
||||||||||
Balances, December 31, 2017
|
125
|
|
|
$
|
125
|
|
|
49,158,238
|
|
|
$
|
6,145
|
|
|
$
|
834,870
|
|
|
$
|
465,231
|
|
|
$
|
(2,908
|
)
|
|
$
|
1,303,463
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||||
(Dollars in Thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Cash Flow From Operating Activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
96,070
|
|
|
$
|
81,051
|
|
|
$
|
65,384
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Provision for loan losses
|
9,143
|
|
|
5,657
|
|
|
417
|
|
|||
Depreciation and amortization
|
7,967
|
|
|
7,161
|
|
|
6,262
|
|
|||
Change in deferred taxes
|
15,523
|
|
|
8,611
|
|
|
4,444
|
|
|||
Share-based compensation
|
2,827
|
|
|
2,600
|
|
|
2,270
|
|
|||
Loans originated for sale
|
(377,252
|
)
|
|
(354,265
|
)
|
|
(364,411
|
)
|
|||
Proceeds from sales of loans held for sale
|
387,095
|
|
|
367,148
|
|
|
367,377
|
|
|||
Gains on sales of loans held for sale
|
(5,910
|
)
|
|
(5,918
|
)
|
|
(5,625
|
)
|
|||
Gain on sale of insurance subsidiary
|
|
|
|
|
|
|
(8,265
|
)
|
|||
Gain on cancellation of subordinated debentures
|
|
|
|
|
|
|
(1,250
|
)
|
|||
Gains on sales of securities available for sale
|
(2,631
|
)
|
|
(3,389
|
)
|
|
(2,670
|
)
|
|||
Increase in cash surrender of life insurance
|
(3,906
|
)
|
|
(3,630
|
)
|
|
(2,927
|
)
|
|||
Gains on life insurance benefits
|
(2,671
|
)
|
|
(643
|
)
|
|
|
|
|||
Change in interest receivable
|
(6,838
|
)
|
|
(1,779
|
)
|
|
(2,833
|
)
|
|||
Change in interest payable
|
31
|
|
|
18
|
|
|
(162
|
)
|
|||
Other adjustments
|
7,054
|
|
|
1,097
|
|
|
(1,351
|
)
|
|||
Net cash provided by operating activities
|
126,502
|
|
|
103,719
|
|
|
56,660
|
|
|||
Cash Flows from Investing Activities:
|
|
|
|
|
|
||||||
Net change in interest-bearing deposits
|
237,936
|
|
|
7,856
|
|
|
24,917
|
|
|||
Purchases of:
|
|
|
|
|
|
||||||
Securities available for sale
|
(479,045
|
)
|
|
(281,470
|
)
|
|
(200,154
|
)
|
|||
Securities held to maturity
|
(30,220
|
)
|
|
(110,797
|
)
|
|
(87,282
|
)
|
|||
Proceeds from sales of securities available for sale
|
94,165
|
|
|
167,186
|
|
|
83,647
|
|
|||
Proceeds from maturities of:
|
|
|
|
|
|
||||||
Securities available for sale
|
70,846
|
|
|
73,956
|
|
|
63,124
|
|
|||
Securities held to maturity
|
72,220
|
|
|
119,052
|
|
|
98,581
|
|
|||
Redemption (Purchase) of Federal Reserve and Federal Home Loan Bank stock
|
40
|
|
|
19,669
|
|
|
7,268
|
|
|||
Net change in loans
|
(670,000
|
)
|
|
(452,781
|
)
|
|
(350,287
|
)
|
|||
Net cash and cash equivalents received (paid) in acquisition
|
54,536
|
|
|
|
|
|
(7,936
|
)
|
|||
Net cash received from sale of insurance subsidiary
|
|
|
|
|
|
|
15,155
|
|
|||
Proceeds from the sale of other real estate owned
|
6,584
|
|
|
9,974
|
|
|
12,567
|
|
|||
Proceeds from life insurance benefits
|
11,655
|
|
|
3,141
|
|
|
|
|
|||
Other investing activities
|
(4,047
|
)
|
|
(4,490
|
)
|
|
9
|
|
|||
Net cash used in investing activities
|
(635,330
|
)
|
|
(448,704
|
)
|
|
(340,391
|
)
|
|||
Cash Flows from Financing Activities:
|
|
|
|
|
|
||||||
Net change in :
|
|
|
|
|
|
||||||
Demand and savings deposits
|
425,742
|
|
|
332,600
|
|
|
240,736
|
|
|||
Certificates of deposit and other time deposits
|
75,236
|
|
|
(66,920
|
)
|
|
(79,656
|
)
|
|||
Borrowings
|
1,088,189
|
|
|
1,107,795
|
|
|
491,660
|
|
|||
Repayment of borrowings
|
(1,024,166
|
)
|
|
(982,449
|
)
|
|
(370,813
|
)
|
|||
Cash dividends on common stock
|
(31,820
|
)
|
|
(22,203
|
)
|
|
(15,654
|
)
|
|||
Stock issued under employee benefit plans
|
519
|
|
|
462
|
|
|
460
|
|
|||
Stock issued under dividend reinvestment and stock purchase plans
|
991
|
|
|
835
|
|
|
661
|
|
|||
Stock options exercised
|
2,398
|
|
|
2,602
|
|
|
1,531
|
|
|||
Stock redeemed
|
(1,283
|
)
|
|
(1,980
|
)
|
|
(1,640
|
)
|
|||
Net cash provided by financing activities
|
535,806
|
|
|
370,742
|
|
|
267,285
|
|
|||
Net Change in Cash and Cash Equivalents
|
26,978
|
|
|
25,757
|
|
|
(16,446
|
)
|
|||
Cash and Cash Equivalents, January 1
|
127,927
|
|
|
102,170
|
|
|
118,616
|
|
|||
Cash and Cash Equivalents, December 31
|
$
|
154,905
|
|
|
$
|
127,927
|
|
|
$
|
102,170
|
|
Additional cash flow information:
|
|
|
|
|
|
||||||
Interest paid
|
$
|
36,332
|
|
|
$
|
26,821
|
|
|
$
|
24,903
|
|
Income tax paid
|
22,421
|
|
|
11,999
|
|
|
21,200
|
|
|||
Loans transferred to other real estate owned
|
8,360
|
|
|
1,684
|
|
|
3,644
|
|
|||
Fixed assets transferred to other assets
|
6,753
|
|
|
360
|
|
|
1,600
|
|
|||
Non-cash investing activities using trade date accounting
|
9,401
|
|
|
14,179
|
|
|
1,559
|
|
|
December 31,
2017 |
|
December 31,
2016 |
|
December 31,
2015 |
||||||
Fair value of assets acquired
|
$
|
1,531,397
|
|
|
$
|
—
|
|
|
$
|
635,047
|
|
Cash received (paid) in acquisition
|
(12
|
)
|
|
|
|
(14,500
|
)
|
||||
Less: Common stock issued
|
321,431
|
|
|
|
|
70,402
|
|
||||
Liabilities assumed
|
$
|
1,209,954
|
|
|
$
|
—
|
|
|
$
|
550,145
|
|
|
|
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
|
|
|
2017
|
|
2016
|
||||
Total revenue (net interest income plus other income)
|
$
|
380,324
|
|
|
$
|
353,732
|
|
Net income
|
$
|
95,009
|
|
|
$
|
95,288
|
|
Net income available to common shareholders
|
|
|
|
||||
Earnings per share:
|
|
|
|
||||
Basic
|
$
|
1.94
|
|
|
$
|
1.95
|
|
Diluted
|
$
|
1.93
|
|
|
$
|
1.94
|
|
|
Amortized Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Fair Value
|
||||||||
Available for sale at December 31, 2017
|
|
|
|
|
|
|
|
||||||||
State and municipal
|
$
|
510,852
|
|
|
$
|
16,932
|
|
|
$
|
1,091
|
|
|
$
|
526,693
|
|
U.S. Government-sponsored mortgage-backed securities
|
473,325
|
|
|
964
|
|
|
3,423
|
|
|
470,866
|
|
||||
Corporate obligations
|
31
|
|
|
|
|
|
|
|
31
|
|
|||||
Equity securities
|
2,357
|
|
|
|
|
|
|
2,357
|
|
||||||
Total available for sale
|
986,565
|
|
|
17,896
|
|
|
4,514
|
|
|
999,947
|
|
||||
Held to maturity at December 31, 2017
|
|
|
|
|
|
|
|
||||||||
U.S. Government-sponsored agency securities
|
22,618
|
|
|
|
|
435
|
|
|
22,183
|
|
|||||
State and municipal
|
235,594
|
|
|
6,295
|
|
|
244
|
|
|
241,645
|
|
||||
U.S. Government-sponsored mortgage-backed securities
|
301,443
|
|
|
3,341
|
|
|
1,404
|
|
|
303,380
|
|
||||
Foreign Investment
|
1,000
|
|
|
|
|
|
|
1,000
|
|
||||||
Total held to maturity
|
560,655
|
|
|
9,636
|
|
|
2,083
|
|
|
568,208
|
|
||||
Total Investment Securities
|
$
|
1,547,220
|
|
|
$
|
27,532
|
|
|
$
|
6,597
|
|
|
$
|
1,568,155
|
|
|
|
|
|
|
|
|
|
||||||||
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
|
|
|
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, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
State and municipal
|
$
|
13,296
|
|
|
$
|
198
|
|
|
$
|
35,324
|
|
|
$
|
893
|
|
|
$
|
48,620
|
|
|
$
|
1,091
|
|
U.S. Government-sponsored mortgage-backed securities
|
182,755
|
|
|
1,520
|
|
|
68,667
|
|
|
1,903
|
|
|
251,422
|
|
|
3,423
|
|
||||||
Total Temporarily Impaired Available for Sale Securities
|
196,051
|
|
|
1,718
|
|
|
103,991
|
|
|
2,796
|
|
|
300,042
|
|
|
4,514
|
|
||||||
Temporarily Impaired Held to Maturity Securities at December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Government-sponsored agency securities
|
9,988
|
|
|
131
|
|
|
12,196
|
|
|
304
|
|
|
22,184
|
|
|
435
|
|
||||||
State and municipal
|
2,430
|
|
|
36
|
|
|
15,805
|
|
|
208
|
|
|
18,235
|
|
|
244
|
|
||||||
U.S. Government-sponsored mortgage-backed securities
|
62,508
|
|
|
485
|
|
|
43,078
|
|
|
919
|
|
|
105,586
|
|
|
1,404
|
|
||||||
Total Temporarily Impaired Held to Maturity Securities
|
74,926
|
|
|
652
|
|
|
71,079
|
|
|
1,431
|
|
|
146,005
|
|
|
2,083
|
|
||||||
Total Temporarily Impaired Investment Securities
|
$
|
270,977
|
|
|
$
|
2,370
|
|
|
$
|
175,070
|
|
|
$
|
4,227
|
|
|
$
|
446,047
|
|
|
$
|
6,597
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
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
|
|
|
Available for Sale
|
|
Held to Maturity
|
||||||||||||
|
Amortized Cost
|
|
Fair Value
|
|
Amortized Cost
|
|
Fair Value
|
||||||||
Maturity Distribution at December 31, 2017
|
|
|
|
|
|
|
|
||||||||
Due in one year or less
|
$
|
425
|
|
|
$
|
425
|
|
|
$
|
12,015
|
|
|
$
|
12,158
|
|
Due after one through five years
|
5,040
|
|
|
5,204
|
|
|
76,146
|
|
|
76,334
|
|
||||
Due after five through ten years
|
74,921
|
|
|
78,806
|
|
|
54,441
|
|
|
55,679
|
|
||||
Due after ten years
|
430,497
|
|
|
442,289
|
|
|
116,610
|
|
|
120,657
|
|
||||
|
510,883
|
|
|
526,724
|
|
|
259,212
|
|
|
264,828
|
|
||||
U.S. Government-sponsored mortgage-backed securities
|
473,325
|
|
|
470,866
|
|
|
301,443
|
|
|
303,380
|
|
||||
Equity securities
|
2,357
|
|
|
2,357
|
|
|
|
|
|
||||||
Total Investment Securities
|
$
|
986,565
|
|
|
$
|
999,947
|
|
|
$
|
560,655
|
|
|
$
|
568,208
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||
|
|
|
|
||||
Commercial and industrial loans
|
$
|
1,493,493
|
|
|
$
|
1,194,646
|
|
Agricultural production financing and other loans to farmers
|
121,757
|
|
|
79,689
|
|
||
Real estate loans:
|
|
|
|
||||
Construction
|
612,219
|
|
|
418,703
|
|
||
Commercial and farmland
|
2,562,691
|
|
|
1,953,062
|
|
||
Residential
|
962,765
|
|
|
739,169
|
|
||
Home equity
|
514,021
|
|
|
418,525
|
|
||
Individuals' loans for household and other personal expenditures
|
86,935
|
|
|
77,479
|
|
||
Lease financing receivables, net of unearned income
|
2,527
|
|
|
311
|
|
||
Other commercial loans
|
394,791
|
|
|
258,061
|
|
||
Loans
|
6,751,199
|
|
|
5,139,645
|
|
||
Allowance for loan losses
|
(75,032
|
)
|
|
(66,037
|
)
|
||
Net Loans
|
$
|
6,676,167
|
|
|
$
|
5,073,608
|
|
|
Twelve Months Ended December 31, 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
|
2,515
|
|
|
3,159
|
|
|
1,078
|
|
|
2,391
|
|
|
|
|
|
9,143
|
|
||||||
Recoveries on loans
|
1,590
|
|
|
2,260
|
|
|
324
|
|
|
706
|
|
|
|
|
|
4,880
|
|
||||||
Loans charged off
|
(1,383
|
)
|
|
(1,737
|
)
|
|
(593
|
)
|
|
(1,315
|
)
|
|
|
|
|
(5,028
|
)
|
||||||
Balances, December 31, 2017
|
$
|
30,418
|
|
|
$
|
27,343
|
|
|
$
|
3,732
|
|
|
$
|
13,537
|
|
|
$
|
2
|
|
|
$
|
75,032
|
|
|
Twelve Months Ended December 31, 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
|
1,876
|
|
|
1,834
|
|
|
432
|
|
|
1,515
|
|
|
|
|
|
5,657
|
|
||||||
Recoveries on loans
|
1,806
|
|
|
2,090
|
|
|
369
|
|
|
1,091
|
|
|
|
|
|
5,356
|
|
||||||
Loans charged off
|
(2,464
|
)
|
|
(2,408
|
)
|
|
(567
|
)
|
|
(1,990
|
)
|
|
|
|
|
(7,429
|
)
|
||||||
Balances, December 31, 2016
|
$
|
27,696
|
|
|
$
|
23,661
|
|
|
$
|
2,923
|
|
|
$
|
11,755
|
|
|
$
|
2
|
|
|
$
|
66,037
|
|
|
Twelve Months Ended December 31, 2015
|
||||||||||||||||||||||
|
Commercial
|
|
Commercial Real Estate
|
|
Consumer
|
|
Residential
|
|
Finance
Leases |
|
Total
|
||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balances, December 31, 2014
|
$
|
28,824
|
|
|
$
|
19,327
|
|
|
$
|
2,658
|
|
|
$
|
13,152
|
|
|
$
|
3
|
|
|
$
|
63,964
|
|
Provision for losses
|
(1,901
|
)
|
|
1,710
|
|
|
299
|
|
|
310
|
|
|
$
|
(1
|
)
|
|
417
|
|
|||||
Recoveries on loans
|
1,911
|
|
|
2,545
|
|
|
352
|
|
|
1,536
|
|
|
|
|
|
6,344
|
|
||||||
Loans charged off
|
(2,356
|
)
|
|
(1,437
|
)
|
|
(620
|
)
|
|
(3,859
|
)
|
|
|
|
|
(8,272
|
)
|
||||||
Balances, December 31, 2015
|
$
|
26,478
|
|
|
$
|
22,145
|
|
|
$
|
2,689
|
|
|
$
|
11,139
|
|
|
$
|
2
|
|
|
$
|
62,453
|
|
|
December 31, 2017
|
||||||||||||||||||||||
|
Commercial
|
|
Commercial
Real Estate |
|
Consumer
|
|
Residential
|
|
Finance
Leases |
|
Total
|
||||||||||||
Allowance balances:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
$
|
666
|
|
|
$
|
567
|
|
|
|
|
|
$
|
404
|
|
|
|
|
$
|
1,637
|
|
|||
Collectively evaluated for impairment
|
29,752
|
|
|
26,776
|
|
|
$
|
3,732
|
|
|
13,133
|
|
|
$
|
2
|
|
|
73,395
|
|
||||
Total Allowance for Loan Losses
|
$
|
30,418
|
|
|
$
|
27,343
|
|
|
$
|
3,732
|
|
|
$
|
13,537
|
|
|
$
|
2
|
|
|
$
|
75,032
|
|
Loan balances:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
$
|
4,776
|
|
|
$
|
21,009
|
|
|
$
|
5
|
|
|
$
|
3,941
|
|
|
|
|
$
|
29,731
|
|
||
Collectively evaluated for impairment
|
2,003,844
|
|
|
3,131,589
|
|
|
86,930
|
|
|
1,471,309
|
|
|
$
|
2,527
|
|
|
6,696,199
|
|
|||||
Loans acquired with deteriorated credit quality
|
1,421
|
|
|
22,312
|
|
|
|
|
|
1,536
|
|
|
|
|
|
25,269
|
|
||||||
Loans
|
$
|
2,010,041
|
|
|
$
|
3,174,910
|
|
|
$
|
86,935
|
|
|
$
|
1,476,786
|
|
|
$
|
2,527
|
|
|
$
|
6,751,199
|
|
|
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
|
|
||||
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
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||
Commercial and industrial loans
|
$
|
3,275
|
|
|
$
|
1,839
|
|
Agriculture production financing and other loans to farmers
|
1,027
|
|
|
1,329
|
|
||
Real estate loans:
|
|
|
|
|
|||
Construction
|
65
|
|
|
73
|
|
||
Commercial and farmland
|
12,951
|
|
|
15,754
|
|
||
Residential
|
9,444
|
|
|
9,523
|
|
||
Home equity
|
1,928
|
|
|
1,457
|
|
||
Individuals' loans for household and other personal expenditures
|
34
|
|
|
23
|
|
||
Total
|
$
|
28,724
|
|
|
$
|
29,998
|
|
|
December 31, 2017
|
||||||||||||||||||
|
Unpaid Principal
Balance |
|
Recorded
Investment |
|
Related
Allowance |
|
Average Recorded Investment
|
|
Interest Income Recognized
|
||||||||||
Impaired loans with no related allowance:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial loans
|
$
|
14,110
|
|
|
$
|
3,850
|
|
|
|
|
$
|
7,653
|
|
|
$
|
186
|
|
||
Agriculture production financing and other loans to farmers
|
1,595
|
|
|
1,238
|
|
|
|
|
1,304
|
|
|
20
|
|
||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction
|
2,530
|
|
|
1,396
|
|
|
|
|
1,420
|
|
|
64
|
|
||||||
Commercial and farmland
|
51,829
|
|
|
39,651
|
|
|
|
|
43,445
|
|
|
1,734
|
|
||||||
Residential
|
5,403
|
|
|
3,133
|
|
|
|
|
3,558
|
|
|
122
|
|
||||||
Home equity
|
80
|
|
|
40
|
|
|
|
|
48
|
|
|
|
|
||||||
Total
|
$
|
75,547
|
|
|
$
|
49,308
|
|
|
|
|
|
$
|
57,428
|
|
|
$
|
2,126
|
|
|
Impaired loans with related allowance:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial loans
|
$
|
812
|
|
|
$
|
782
|
|
|
$
|
552
|
|
|
$
|
1,517
|
|
|
|
|
|
Agriculture production financing and other loans to farmers
|
357
|
|
|
327
|
|
|
114
|
|
|
327
|
|
|
|
|
|||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and farmland
|
2,989
|
|
|
2,270
|
|
|
567
|
|
|
2,383
|
|
|
$
|
4
|
|
||||
Total
|
$
|
4,158
|
|
|
$
|
3,379
|
|
|
$
|
1,233
|
|
|
$
|
4,227
|
|
|
$
|
4
|
|
Total Impaired Loans
|
$
|
79,705
|
|
|
$
|
52,687
|
|
|
$
|
1,233
|
|
|
$
|
61,655
|
|
|
$
|
2,130
|
|
|
December 31, 2016
|
||||||||||||||||||
|
Unpaid Principal
Balance |
|
Recorded
Investment |
|
Related
Allowance |
|
Average Recorded Investment
|
|
Interest Income Recognized
|
||||||||||
Impaired loans with no related allowance:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial loans
|
$
|
17,645
|
|
|
$
|
10,074
|
|
|
|
|
|
$
|
13,393
|
|
|
$
|
499
|
|
|
Agriculture production financing and other loans to farmers
|
757
|
|
|
680
|
|
|
|
|
|
750
|
|
|
3
|
|
|||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction
|
5,946
|
|
|
3,178
|
|
|
|
|
3,255
|
|
|
258
|
|
||||||
Commercial and farmland
|
67,936
|
|
|
49,731
|
|
|
|
|
51,740
|
|
|
2,978
|
|
||||||
Residential
|
8,039
|
|
|
4,664
|
|
|
|
|
5,410
|
|
|
167
|
|
||||||
Home equity
|
82
|
|
|
44
|
|
|
|
|
44
|
|
|
|
|
||||||
Other commercial loans
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total
|
$
|
100,416
|
|
|
$
|
68,371
|
|
|
|
|
$
|
74,592
|
|
|
$
|
3,905
|
|
||
Impaired loans with related allowance:
|
|
|
|
|
|
|
|
|
|
||||||||||
Agriculture production financing and other loans to farmers
|
$
|
660
|
|
|
$
|
660
|
|
|
$
|
36
|
|
|
$
|
691
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and farmland
|
4,238
|
|
|
2,985
|
|
|
553
|
|
|
2,989
|
|
|
|
|
|||||
Residential
|
65
|
|
|
34
|
|
|
23
|
|
|
38
|
|
|
|
|
|||||
Total
|
$
|
4,963
|
|
|
$
|
3,679
|
|
|
$
|
612
|
|
|
$
|
3,718
|
|
|
|
|
|
Total Impaired Loans
|
$
|
105,379
|
|
|
$
|
72,050
|
|
|
$
|
612
|
|
|
$
|
78,310
|
|
|
$
|
3,905
|
|
|
December 31, 2015
|
||||||||||||||||||
|
Unpaid Principal
Balance |
|
Recorded
Investment |
|
Related
Allowance |
|
Average Recorded Investment
|
|
Interest Income Recognized
|
||||||||||
Impaired loans with no related allowance:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial loans
|
$
|
22,151
|
|
|
$
|
11,669
|
|
|
|
|
$
|
12,578
|
|
|
$
|
488
|
|
||
Agriculture production financing and other loans to farmers
|
370
|
|
|
361
|
|
|
|
|
439
|
|
|
|
|||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction
|
4,551
|
|
|
2,336
|
|
|
|
|
3,662
|
|
|
157
|
|
||||||
Commercial and farmland
|
95,930
|
|
|
69,024
|
|
|
|
|
71,569
|
|
|
3,328
|
|
||||||
Residential
|
11,262
|
|
|
7,338
|
|
|
|
|
7,926
|
|
|
244
|
|
||||||
Home equity
|
297
|
|
|
247
|
|
|
|
|
249
|
|
|
|
|
||||||
Other commercial loans
|
20
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total
|
$
|
134,581
|
|
|
$
|
90,975
|
|
|
|
|
$
|
96,423
|
|
|
$
|
4,217
|
|
||
Impaired loans with related allowance:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial loans
|
$
|
3,043
|
|
|
$
|
2,690
|
|
|
$
|
1,247
|
|
|
$
|
2,752
|
|
|
$
|
38
|
|
Agriculture production financing and other loans to farmers
|
466
|
|
466
|
|
30
|
|
538
|
|
|
||||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and farmland
|
2,144
|
|
|
1,933
|
|
|
392
|
|
|
1,868
|
|
|
|
|
|||||
Residential
|
2,300
|
|
|
1,463
|
|
|
173
|
|
|
1,787
|
|
|
|
|
|||||
Total
|
$
|
7,953
|
|
|
$
|
6,552
|
|
|
$
|
1,842
|
|
|
$
|
6,945
|
|
|
$
|
38
|
|
Total Impaired Loans
|
$
|
142,534
|
|
|
$
|
97,527
|
|
|
$
|
1,842
|
|
|
$
|
103,368
|
|
|
$
|
4,255
|
|
•
|
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 or desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be possible at some time in the future.
|
|
December 31, 2017
|
||||||||||||||||||||||||||||||
|
Commercial Pass
|
|
Commercial Special Mention
|
|
Commercial Substandard
|
|
Commercial Doubtful
|
|
Commercial Loss
|
|
Consumer Performing
|
|
Consumer
Non Performing |
|
Total
|
||||||||||||||||
Commercial and industrial loans
|
$
|
1,418,401
|
|
|
$
|
51,336
|
|
|
$
|
23,386
|
|
|
$
|
370
|
|
|
|
|
|
|
|
|
$
|
1,493,493
|
|
||||||
Agriculture production financing and other loans to farmers
|
73,800
|
|
|
27,502
|
|
|
20,018
|
|
|
387
|
|
|
$
|
50
|
|
|
|
|
|
|
121,757
|
|
|||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Construction
|
587,906
|
|
|
828
|
|
|
981
|
|
|
|
|
|
|
$
|
22,374
|
|
|
$
|
130
|
|
|
612,219
|
|
||||||||
Commercial and farmland
|
2,408,329
|
|
|
70,074
|
|
|
79,769
|
|
|
1,536
|
|
|
|
|
2,980
|
|
|
3
|
|
|
2,562,691
|
|
|||||||||
Residential
|
185,725
|
|
|
4,376
|
|
|
4,209
|
|
|
114
|
|
|
|
|
759,900
|
|
|
8,441
|
|
|
962,765
|
|
|||||||||
Home equity
|
28,554
|
|
|
457
|
|
|
286
|
|
|
|
|
|
|
482,661
|
|
|
2,063
|
|
|
514,021
|
|
||||||||||
Individuals' loans for household and other personal expenditures
|
|
|
|
|
|
|
|
|
|
|
86,875
|
|
|
60
|
|
|
86,935
|
|
|||||||||||||
Lease financing receivables, net of unearned income
|
2,527
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,527
|
|
|||||||||||||
Other commercial loans
|
394,222
|
|
|
|
|
|
569
|
|
|
|
|
|
|
|
|
|
|
|
394,791
|
|
|||||||||||
Loans
|
$
|
5,099,464
|
|
|
$
|
154,573
|
|
|
$
|
129,218
|
|
|
$
|
2,407
|
|
|
$
|
50
|
|
|
$
|
1,354,790
|
|
|
$
|
10,697
|
|
|
$
|
6,751,199
|
|
|
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
|
|
|
December 31, 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
|
$
|
1,487,221
|
|
|
$
|
2,967
|
|
|
$
|
30
|
|
|
|
|
|
$
|
3,275
|
|
|
$
|
6,272
|
|
|
$
|
1,493,493
|
|
|
Agriculture production financing and other loans to farmers
|
120,720
|
|
|
10
|
|
|
|
|
|
|
|
|
1,027
|
|
|
1,037
|
|
|
121,757
|
|
|||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction
|
610,896
|
|
|
1,193
|
|
|
|
|
$
|
65
|
|
|
65
|
|
|
1,323
|
|
|
612,219
|
|
|||||||
Commercial and farmland
|
2,542,048
|
|
|
6,923
|
|
|
166
|
|
|
603
|
|
|
12,951
|
|
|
20,643
|
|
|
2,562,691
|
|
|||||||
Residential
|
948,947
|
|
|
4,010
|
|
|
308
|
|
|
56
|
|
|
9,444
|
|
|
13,818
|
|
|
962,765
|
|
|||||||
Home equity
|
510,362
|
|
|
1,372
|
|
|
184
|
|
|
175
|
|
|
1,928
|
|
|
3,659
|
|
|
514,021
|
|
|||||||
Individuals' loans for household and other personal expenditures
|
85,744
|
|
|
298
|
|
|
834
|
|
|
25
|
|
|
34
|
|
|
1,191
|
|
|
86,935
|
|
|||||||
Lease financing receivables, net of unearned income
|
2,527
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,527
|
|
||||||||||
Other commercial loans
|
394,791
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
394,791
|
|
||||||||||
Loans
|
$
|
6,703,256
|
|
|
$
|
16,773
|
|
|
$
|
1,522
|
|
|
$
|
924
|
|
|
$
|
28,724
|
|
|
$
|
47,943
|
|
|
$
|
6,751,199
|
|
|
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
|
|
|
December 31, 2017
|
|||||||||
|
Pre-Modification
Recorded Balance |
|
Post-Modification
Recorded Balance |
|
Number
of Loans |
|||||
Commercial and industrial loans
|
$
|
599
|
|
|
$
|
376
|
|
|
3
|
|
Agriculture production financing and other loans to farmers
|
387
|
|
|
387
|
|
|
3
|
|
||
Real estate loans:
|
|
|
|
|
|
|||||
Commercial and farmland
|
1,022
|
|
|
1,156
|
|
|
8
|
|
||
Residential
|
788
|
|
|
862
|
|
|
15
|
|
||
Home equity
|
195
|
|
|
107
|
|
|
4
|
|
||
Individuals' loans for household and other personal expenditures
|
13
|
|
|
14
|
|
|
1
|
|
||
Total
|
$
|
3,004
|
|
|
$
|
2,902
|
|
|
34
|
|
|
December 31, 2016
|
|||||||||
|
Pre-Modification
Recorded Balance |
|
Post-Modification
Recorded Balance |
|
Number
of Loans |
|||||
Commercial and industrial loans
|
$
|
410
|
|
|
$
|
410
|
|
|
4
|
|
Agriculture production financing and other loans to farmers
|
1,368
|
|
|
1,234
|
|
|
4
|
|
||
Real estate loans:
|
|
|
|
|
|
|||||
Commercial and farmland
|
3,978
|
|
|
3,954
|
|
|
7
|
|
||
Residential
|
1,126
|
|
|
1,183
|
|
|
17
|
|
||
Home equity
|
266
|
|
|
244
|
|
|
4
|
|
||
Individuals' loans for household and other personal expenditures
|
17
|
|
|
10
|
|
|
1
|
|
||
Total
|
$
|
7,165
|
|
|
$
|
7,035
|
|
|
37
|
|
|
December 31, 2017
|
||||||||||||||
|
Term
Modification |
|
Rate
Modification |
|
Combination
|
|
Total
Modification |
||||||||
Commercial and industrial loans
|
$
|
203
|
|
|
|
|
$
|
166
|
|
|
$
|
369
|
|
||
Agriculture production financing and other farm loans
|
387
|
|
|
|
|
|
|
|
387
|
|
|||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial and farmland
|
705
|
|
|
$
|
59
|
|
|
232
|
|
|
996
|
|
|||
Residential
|
|
|
|
761
|
|
|
85
|
|
|
846
|
|
||||
Home equity
|
|
|
105
|
|
|
|
|
105
|
|
||||||
Individuals' loans for household and other personal expenditures
|
|
|
14
|
|
|
|
|
14
|
|
||||||
Total
|
$
|
1,295
|
|
|
$
|
939
|
|
|
$
|
483
|
|
|
$
|
2,717
|
|
|
December 31, 2016
|
||||||||||||||
|
Term
Modification |
|
Rate
Modification |
|
Combination
|
|
Total
Modification |
||||||||
Commercial and industrial loans
|
|
|
|
|
|
$
|
397
|
|
|
$
|
397
|
|
|||
Agriculture production financing and other loans to farmers
|
$
|
660
|
|
|
$
|
12
|
|
|
|
|
672
|
|
|||
Real estate loans:
|
|
|
|
|
|
|
|
||||||||
Commercial and farmland
|
297
|
|
|
|
|
|
3,456
|
|
|
3,753
|
|
||||
Residential
|
238
|
|
|
928
|
|
|
|
|
|
1,166
|
|
||||
Home equity
|
|
|
|
266
|
|
|
|
|
|
266
|
|
||||
Individuals' loans for household and other personal expenditures
|
|
|
|
9
|
|
|
|
|
9
|
|
|||||
Total
|
$
|
1,195
|
|
|
$
|
1,215
|
|
|
$
|
3,853
|
|
|
$
|
6,263
|
|
|
Twelve Months Ended December 31, 2017
|
|||||
|
Number of Loans
|
|
Recorded Balance
|
|||
Real estate loans:
|
|
|
|
|||
Commercial and farmland
|
1
|
|
|
$
|
14
|
|
Residential
|
4
|
|
|
323
|
|
|
Total
|
5
|
|
|
$
|
337
|
|
|
Twelve Months Ended December 31, 2016
|
|||||
|
Number of Loans
|
|
Recorded Balance
|
|||
Commercial and industrial loans
|
3
|
|
|
$
|
197
|
|
Agriculture production financing and other loans to farmers
|
1
|
|
|
661
|
|
|
Real estate loans:
|
|
|
|
|||
Commercial and farmland
|
1
|
|
|
343
|
|
|
Residential
|
1
|
|
|
$
|
64
|
|
Total
|
6
|
|
|
$
|
1,265
|
|
|
December 31, 2017
|
||||||||||||||||||||||||||||||
|
IAB
|
|
Arlington Bank
|
|
Ameriana
|
|
C Financial
|
|
Community
|
|
CFS
|
|
SCB
|
|
Total
|
||||||||||||||||
Outstanding Balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial loans
|
$
|
83,630
|
|
|
$
|
3,152
|
|
|
$
|
4,150
|
|
|
$
|
64
|
|
|
$
|
235
|
|
|
$
|
10,539
|
|
|
$
|
1,760
|
|
|
$
|
103,530
|
|
Agricultural production financing and other loans to farmers
|
33,537
|
|
|
|
|
|
|
|
|
76
|
|
|
50
|
|
|
1,317
|
|
|
34,980
|
|
|||||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction
|
23,571
|
|
|
14,716
|
|
|
2,451
|
|
|
830
|
|
|
1,499
|
|
|
65
|
|
|
|
|
43,132
|
|
|||||||||
Commercial and farmland
|
346,155
|
|
|
76,375
|
|
|
79,739
|
|
|
15,791
|
|
|
27,910
|
|
|
65,578
|
|
|
6,733
|
|
|
618,281
|
|
||||||||
Residential
|
100,569
|
|
|
69,011
|
|
|
86,098
|
|
|
32,854
|
|
|
6,354
|
|
|
79,674
|
|
|
2,899
|
|
|
377,459
|
|
||||||||
Home equity
|
36,349
|
|
|
22,581
|
|
|
8,800
|
|
|
5,733
|
|
|
4,392
|
|
|
19,972
|
|
|
9,636
|
|
|
107,463
|
|
||||||||
Individuals' loans for household and other personal expenditures
|
3,552
|
|
|
174
|
|
|
356
|
|
|
|
|
|
82
|
|
|
22
|
|
|
21
|
|
|
4,207
|
|
||||||||
Other commercial loans
|
11,189
|
|
|
90
|
|
|
1,745
|
|
|
|
|
|
|
58
|
|
|
|
|
13,082
|
|
|||||||||||
Total
|
638,552
|
|
|
186,099
|
|
|
183,339
|
|
|
55,272
|
|
|
40,548
|
|
|
175,958
|
|
|
22,366
|
|
|
1,302,134
|
|
||||||||
Remaining fair value discount
|
(20,090
|
)
|
|
(5,242
|
)
|
|
(6,689
|
)
|
|
(1,266
|
)
|
|
(2,482
|
)
|
|
(5,859
|
)
|
|
(2,120
|
)
|
|
(43,748
|
)
|
||||||||
Carrying amount
|
618,462
|
|
|
180,857
|
|
|
176,650
|
|
|
54,006
|
|
|
38,066
|
|
|
170,099
|
|
|
20,246
|
|
|
1,258,386
|
|
||||||||
Allowance
|
290
|
|
|
|
|
411
|
|
|
|
|
52
|
|
|
16
|
|
|
|
|
769
|
|
|||||||||||
Carrying amount net of allowance
|
$
|
618,172
|
|
|
$
|
180,857
|
|
|
$
|
176,239
|
|
|
$
|
54,006
|
|
|
$
|
38,014
|
|
|
$
|
170,083
|
|
|
$
|
20,246
|
|
|
$
|
1,257,617
|
|
|
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
|
|
|
Twelve Months Ended December 31, 2017
|
||||||||||||||||||||||||||||||
|
IAB
|
|
Arlington Bank
|
|
Ameriana
|
|
C Financial
|
|
Community
|
|
CFS
|
|
SCB
|
|
Total
|
||||||||||||||||
Beginning balance
|
|
|
|
|
$
|
1,629
|
|
|
$
|
73
|
|
|
$
|
1,233
|
|
|
$
|
736
|
|
|
$
|
279
|
|
|
$
|
3,950
|
|
||||
Additions
|
$
|
941
|
|
|
$
|
667
|
|
|
|
|
|
|
|
|
|
|
|
|
1,608
|
|
|||||||||||
Accretion
|
(1,009
|
)
|
|
(314
|
)
|
|
(2,983
|
)
|
|
(260
|
)
|
|
(454
|
)
|
|
(1,172
|
)
|
|
(557
|
)
|
|
(6,749
|
)
|
||||||||
Reclassification from nonaccretable
|
834
|
|
|
164
|
|
|
1,805
|
|
|
187
|
|
|
212
|
|
|
1,075
|
|
|
471
|
|
|
4,748
|
|
||||||||
Disposals
|
|
|
|
|
|
|
|
|
|
(122
|
)
|
|
(545
|
)
|
|
|
|
(667
|
)
|
||||||||||||
Ending balance
|
$
|
766
|
|
|
$
|
517
|
|
|
$
|
451
|
|
|
|
|
|
$
|
869
|
|
|
$
|
94
|
|
|
$
|
193
|
|
|
$
|
2,890
|
|
|
Twelve Months Ended December 31, 2016
|
||||||||||||||||||||||
|
Ameriana
|
|
C Financial
|
|
Community
|
|
CFS
|
|
SCB
|
|
Total
|
||||||||||||
Beginning balance
|
$
|
2,160
|
|
|
$
|
114
|
|
|
$
|
1,508
|
|
|
$
|
1,188
|
|
|
$
|
642
|
|
|
$
|
5,612
|
|
Additions
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accretion
|
(311
|
)
|
|
(123
|
)
|
|
(1,119
|
)
|
|
(4,268
|
)
|
|
(756
|
)
|
|
(6,577
|
)
|
||||||
Reclassification from nonaccretable
|
12
|
|
|
82
|
|
|
858
|
|
|
3,827
|
|
|
393
|
|
|
5,172
|
|
||||||
Disposals
|
(232
|
)
|
|
|
|
(14
|
)
|
|
(11
|
)
|
|
|
|
(257
|
)
|
||||||||
Ending balance
|
$
|
1,629
|
|
|
$
|
73
|
|
|
$
|
1,233
|
|
|
$
|
736
|
|
|
$
|
279
|
|
|
$
|
3,950
|
|
|
Twelve Months Ended December 31, 2015
|
||||||||||||||||||||||
|
Ameriana
|
|
C Financial
|
|
Community
|
|
CFS
|
|
SCB
|
|
Total
|
||||||||||||
Beginning balance
|
|
|
|
|
$
|
2,122
|
|
|
$
|
2,400
|
|
|
$
|
868
|
|
|
$
|
5,390
|
|
||||
Additions
|
$
|
2,160
|
|
|
$
|
145
|
|
|
|
|
|
|
|
|
2,305
|
|
|||||||
Accretion
|
|
|
(31
|
)
|
|
(723
|
)
|
|
(4,050
|
)
|
|
(1,046
|
)
|
|
(5,850
|
)
|
|||||||
Reclassification from nonaccretable
|
|
|
|
|
249
|
|
|
2,854
|
|
|
822
|
|
|
3,925
|
|
||||||||
Disposals
|
|
|
|
|
(140
|
)
|
|
(16
|
)
|
|
(2
|
)
|
|
(158
|
)
|
||||||||
Ending balance
|
$
|
2,160
|
|
|
$
|
114
|
|
|
$
|
1,508
|
|
|
$
|
1,188
|
|
|
$
|
642
|
|
|
$
|
5,612
|
|
|
2017
|
||||||||||
|
IAB
|
|
Arlington Bank
|
|
Total
|
||||||
Contractually required payments receivable at acquisition date
|
$
|
14,131
|
|
|
$
|
6,183
|
|
|
$
|
20,314
|
|
Nonaccretable difference
|
8,352
|
|
|
2,891
|
|
|
11,243
|
|
|||
Expected cash flows at acquisition date
|
5,779
|
|
|
3,292
|
|
|
9,071
|
|
|||
Accretable difference
|
941
|
|
|
667
|
|
|
1,608
|
|
|||
Basis in loans at acquisition date
|
$
|
4,838
|
|
|
$
|
2,625
|
|
|
$
|
7,463
|
|
|
2017
|
|
2016
|
||||
Cost at December 31:
|
|
|
|
||||
Land
|
$
|
22,042
|
|
|
$
|
25,035
|
|
Buildings and Leasehold Improvements
|
124,441
|
|
|
114,444
|
|
||
Equipment
|
82,344
|
|
|
65,547
|
|
||
Total Cost
|
228,827
|
|
|
205,026
|
|
||
Accumulated Depreciation and Amortization
|
(132,975
|
)
|
|
(110,594
|
)
|
||
Net
|
$
|
95,852
|
|
|
$
|
94,432
|
|
|
Future Minimum Rental Commitments
|
||
2018
|
$
|
3,161
|
|
2019
|
3,611
|
|
|
2020
|
3,484
|
|
|
2021
|
3,137
|
|
|
2022
|
3,090
|
|
|
After 2022
|
15,180
|
|
|
Total Future Minimum Obligations
|
$
|
31,663
|
|
|
2017
|
|
2016
|
||||
Balance, January 1
|
$
|
244,000
|
|
|
$
|
243,129
|
|
Goodwill acquired
|
201,824
|
|
|
|
|||
Measurement period adjustment
|
(469
|
)
|
|
$
|
871
|
|
|
Balance, December 31
|
$
|
445,355
|
|
|
$
|
244,000
|
|
|
2017
|
|
2016
|
||||
Gross carrying amount
|
$
|
63,940
|
|
|
$
|
61,798
|
|
Core deposit intangible acquired
|
18,164
|
|
|
|
|
||
Other intangibles acquired
|
3,765
|
|
|
|
|||
Measurement period adjustment
|
|
|
|
2,142
|
|
||
Accumulated amortization
|
(54,721
|
)
|
|
(49,074
|
)
|
||
Core deposit intangible and other intangibles reduction
|
|
|
|
|
|
||
Core Deposit and Other Intangibles
|
$
|
31,148
|
|
|
$
|
14,866
|
|
|
Amortization Expense
|
||
2018
|
$
|
6,719
|
|
2019
|
5,169
|
|
|
2020
|
3,632
|
|
|
2021
|
3,427
|
|
|
2022
|
3,325
|
|
|
After 2022
|
8,876
|
|
|
|
$
|
31,148
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||
Demand deposits
|
$
|
3,746,654
|
|
|
$
|
2,866,853
|
|
Savings deposits
|
1,994,366
|
|
|
1,560,752
|
|
||
Certificates and other time deposits of $100,000 or more
|
468,895
|
|
|
276,274
|
|
||
Other certificates and time deposits
|
581,894
|
|
|
471,247
|
|
||
Brokered deposits
|
380,721
|
|
|
381,372
|
|
||
Total deposits
|
$
|
7,172,530
|
|
|
$
|
5,556,498
|
|
|
Certificates and Other Time Deposits
|
||
2018
|
$
|
876,126
|
|
2019
|
330,892
|
|
|
2020
|
119,066
|
|
|
2021
|
63,005
|
|
|
2022
|
27,518
|
|
|
After 2022
|
14,903
|
|
|
|
$
|
1,431,510
|
|
|
December 31, 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
|
$
|
126,187
|
|
|
1,340
|
|
|
1,500
|
|
|
$
|
7,596
|
|
|
$
|
136,623
|
|
|
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
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||
Federal funds purchased
|
$
|
144,038
|
|
|
$
|
120,349
|
|
Securities sold under repurchase agreements
|
136,623
|
|
|
146,480
|
|
||
Federal Home Loan Bank advances
|
414,377
|
|
|
298,923
|
|
||
Subordinated debentures and term loans
|
139,349
|
|
|
128,445
|
|
||
Total Borrowings
|
$
|
834,387
|
|
|
$
|
694,197
|
|
Maturities in Years Ending December 31:
|
Federal Funds Purchased
|
|
Securities Sold
Under Repurchase Agreements |
|
Federal Home
Loan Bank Advances |
|
Subordinated
Debentures and Term Loans |
||||||||
2018
|
$
|
144,038
|
|
|
$
|
136,623
|
|
|
$
|
171,391
|
|
|
|
|
|
2019
|
|
|
|
|
121,713
|
|
|
|
|||||||
2020
|
|
|
|
|
41,273
|
|
|
|
|||||||
2021
|
|
|
|
|
25,000
|
|
|
|
|||||||
2022
|
|
|
|
|
20,000
|
|
|
|
|||||||
After 2022
|
|
|
|
|
35,000
|
|
|
$
|
143,430
|
|
|||||
ASC 805 fair value adjustments at acquisition
|
|
|
|
|
|
|
(4,081
|
)
|
|||||||
|
$
|
144,038
|
|
|
$
|
136,623
|
|
|
$
|
414,377
|
|
|
$
|
139,349
|
|
•
|
First Merchants Capital Trust II.
The subordinated debenture was entered into on July 2, 2007 for
$56,702,000
. On August 10, 2015, the Corporation completed the cancellation of
$5 million
of subordinated debentures at a gain of
$1,250,000
. As of
December 31, 2017
,
$51,702,000
of subordinated debentures remain outstanding with a maturity date of September 15, 2037. The Corporation could not redeem the debenture prior to September 15, 2012, and redemption is subject to the prior approval of the Board of Governors of the Federal Reserve System, as required by law or regulation. Interest was fixed at
6.495 percent
for the period from the date of issuance through September 15, 2012; interest is now an annual floating rate equal to the three-month LIBOR plus
1.56 percent
, reset quarterly. Interest is payable in March, June, September and December of each year. The interest rate at
December 31, 2017
and
2016
was
3.15 percent
and
2.52 percent
, respectively. The Corporation holds all of the outstanding common securities of First Merchants Capital Trust II.
|
•
|
Ameriana Capital Trust I.
On December 31, 2015 the Corporation acquired Ameriana Capital Trust I in conjunction with its acquisition of Ameriana Bancorp, Inc. The subordinated debentures of Ameriana Capital Trust I were entered into in March 2007 for
$10,310,000
and have a maturity of March 2036. Ameriana could not redeem the debenture prior to March 2011, and redemption is subject to the prior approval of the Board of Governors of the Federal Reserve System, as required by law or regulation. The interest rate is equal to the three-month LIBOR plus
1.50 percent
, reset quarterly. Interest is payable in March, June, September and December of each year. The interest rate at
December 31, 2017
and
2016
was
3.09 percent
and
2.46 percent
, respectively. The Corporation holds all of the outstanding common securities of Ameriana Capital Trust I.
|
•
|
Grabill Capital Trust I.
On July 14, 2017 the Corporation acquired Grabill Capital Trust I in conjunction with its acquisition of Independent Alliance Banks, Inc. The subordinated debentures of Grabill Capital Trust I were entered into in June 2004 for
$10,310,000
and have a maturity of July 23, 2034. IAB could not redeem the debenture prior to July 2009, and redemption is subject to the prior approval of the Board of Governors of the Federal Reserve System, as required by law or regulation. The interest rate is equal to the three-month LIBOR plus
2.60 percent
, reset quarterly. Interest is payable in January, April, July and October of each year. The interest rate at
December 31, 2017
was
3.96 percent
. The Corporation holds all of the outstanding common securities of Grabill Capital Trust I.
|
•
|
On November 1, 2013, the Corporation completed the private issuance and sale to
four
institutional investors of an aggregate of
$70 million
of debt comprised of (a)
5.00 percent
Fixed-to-Floating Rate Senior Notes due 2028 in the aggregate principal amount of
$5 million
(the "Senior Debt") and (b)
6.75 percent
Fixed-to -Floating Rate Subordinated Notes due 2028 in the aggregate principal amount of
$65 million
(the "Subordinated Debt"). The interest rate on the Senior Debt and Subordinated Debt remains fixed for the first ten (
10
) years and will become floating thereafter. Once the rates convert to floating on October 30, 2023, the Senior Debt will have an annual floating rate equal to the three-month LIBOR plus
2.345 percent
and the Subordinated Debt will have an annual floating rate equal to the three-month LIBOR plus
4.095 percent
. The Corporation has an option to redeem the Subordinated Debt in whole or in part at a redemption price equal to
100
percent of the principal amount of the redeemed Subordinated Notes, plus accrued and unpaid interest to the date of the redemption. The option of redemption is subject to the approval of the Federal Reserve Board. The Corporation has an option to redeem the Senior Debt in whole or in part at a redemption price equal to
100
percent of the principal amount of the redeemed Senior Notes, plus accrued and unpaid interest to the date of the redemption; provided, however, that no Subordinated Notes (as defined in the Issuing and Paying Agency Agreement) may remain outstanding subsequent to any early redemption of Senior Notes. The Subordinated Debt and the Senior Debt options to redeem begin with the interest payment date on October 30, 2023, or on any scheduled interest payment date thereafter. The Senior Debt agreement contains certain customary representations and warranties and financial and negative covenants. As of
December 31, 2017
and
2016
the Corporation was in compliance with these covenants.
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||||||||||||||
|
December 31, 2017
|
|
December 31, 2016
|
|
December 31, 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
|
|
$
|
18
|
|
|
Other Assets
|
|
$
|
15
|
|
|
Other Liabilities
|
|
$
|
1,383
|
|
|
Other Liabilities
|
|
$
|
2,182
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
Other Assets
|
|
$
|
7,305
|
|
|
Other Assets
|
|
$
|
6,295
|
|
|
Other Liabilities
|
|
$
|
7,305
|
|
|
Other Liabilities
|
|
$
|
6,295
|
|
Derivatives in Cash Flow Hedging Relationships
|
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative
(Effective Portion) For the Year Ended |
||||||
2017
|
|
2016
|
|||||
Interest rate products
|
$
|
13
|
|
|
$
|
(368
|
)
|
Derivatives Not
Designated as Hedging Instruments under FASB ASC 815-10 |
Location of Gain
(Loss) Recognized in Income on Derivative |
Amount of Gain (Loss) Recognized in Income on Derivative
|
||||||||||
2017
|
|
2016
|
|
2015
|
||||||||
Interest rate contracts
|
Other income
|
$
|
—
|
|
|
$
|
211
|
|
|
$
|
(53
|
)
|
Derivatives Designated as Hedging
Instruments under FASB ASC 815-10 |
Location of Loss Reclassified from Accumulated Other Comprehensive Income (Effective Portion)
|
Amount of Loss Reclassified from Other Comprehensive Income into Income (Effective Portion)
|
||||||||||
2017
|
|
2016
|
|
2015
|
||||||||
Interest rate contracts
|
Interest expense
|
$
|
(985
|
)
|
|
$
|
(1,250
|
)
|
|
$
|
(1,427
|
)
|
|
|
|
|
Fair Value Measurements Using:
|
||||||||||
|
|
|
|
Quoted Prices in Active
Markets for Identical Assets |
|
Significant Other Observable Inputs
|
|
Significant
Unobservable Inputs |
||||||
December 31, 2017
|
|
Fair Value
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||||
Available for sale securities:
|
|
|
|
|
|
|
|
|
||||||
State and municipal
|
|
$
|
526,693
|
|
|
|
|
$
|
522,750
|
|
|
$
|
3,943
|
|
U.S. Government-sponsored mortgage-backed securities
|
|
470,866
|
|
|
|
|
470,866
|
|
|
|
||||
Corporate obligations
|
|
31
|
|
|
|
|
|
|
31
|
|
||||
Equity securities
|
|
2,357
|
|
|
|
|
2,353
|
|
|
4
|
|
|||
Interest rate swap asset
|
|
7,305
|
|
|
|
|
7,305
|
|
|
|
||||
Interest rate cap
|
|
18
|
|
|
|
|
18
|
|
|
|
||||
Interest rate swap liability
|
|
8,688
|
|
|
|
|
8,688
|
|
|
|
|
|
|
|
Fair Value Measurements Using:
|
||||||||||||
|
|
|
|
Quoted Prices in Active
Markets for Identical Assets |
|
Significant Other Observable Inputs
|
|
Significant
Unobservable Inputs |
||||||||
December 31, 2016
|
|
Fair Value
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||||||
Available for sale securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Government-sponsored agency securities
|
|
$
|
100
|
|
|
|
|
$
|
100
|
|
|
|
||||
State and municipal
|
|
363,658
|
|
|
|
|
358,524
|
|
|
$
|
5,134
|
|
||||
U.S. Government-sponsored mortgage-backed securities
|
|
312,292
|
|
|
|
|
312,292
|
|
|
|
||||||
Corporate obligations
|
|
31
|
|
|
|
|
|
|
31
|
|
||||||
Equity securities
|
|
20,781
|
|
|
$
|
18,765
|
|
|
2,012
|
|
|
4
|
|
|||
Interest rate swap asset
|
|
6,295
|
|
|
|
|
6,295
|
|
|
|
||||||
Interest rate cap
|
|
15
|
|
|
|
|
15
|
|
|
|
||||||
Interest rate swap liability
|
|
8,477
|
|
|
|
|
8,477
|
|
|
|
|
Available for Sale Securities
|
||||||
|
For The Year Ended
|
||||||
|
December 31, 2017
|
|
December 31, 2016
|
||||
Beginning Balance
|
$
|
5,169
|
|
|
$
|
5,932
|
|
Included in other comprehensive income
|
26
|
|
|
(223
|
)
|
||
Principal payments
|
(1,217
|
)
|
|
(540
|
)
|
||
Ending balance
|
$
|
3,978
|
|
|
$
|
5,169
|
|
|
|
|
|
Fair Value Measurements Using
|
||||||||
|
|
|
|
Quoted Prices in Active
Markets for Identical Assets |
|
Significant Other Observable Inputs
|
|
Significant
Unobservable Inputs |
||||
December 31, 2017
|
|
Fair Value
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||
Impaired Loans (collateral dependent)
|
|
$
|
9,576
|
|
|
|
|
|
|
$
|
9,576
|
|
Other real estate owned
|
|
$
|
859
|
|
|
|
|
|
|
$
|
859
|
|
|
|
|
|
Fair Value Measurements Using
|
||||||||
|
|
|
|
Quoted Prices in Active
Markets for Identical Assets |
|
Significant Other Observable Inputs
|
|
Significant
Unobservable Inputs |
||||
December 31, 2016
|
|
Fair Value
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||
Impaired Loans (collateral dependent)
|
|
$
|
15,318
|
|
|
|
|
|
|
$
|
15,318
|
|
Other real estate owned
|
|
$
|
1,612
|
|
|
|
|
|
|
$
|
1,612
|
|
December 31, 2017
|
Fair Value
|
|
Valuation Technique
|
|
Unobservable Inputs
|
|
Range (Weighted-Average)
|
||
State and municipal securities
|
$
|
3,943
|
|
|
Discounted cash flow
|
|
Maturity Call Date
US Muni BQ curve Discount rate |
|
1 month to 20 years
A- to BBB- .69% - 5% |
|
|
|
|
|
|
|
|
||
Corporate obligations and Equity securities
|
$
|
35
|
|
|
Discounted cash flow
|
|
Risk free rate
plus Premium for illiquidity |
|
3 month LIBOR
plus 200 bps |
|
|
|
|
|
|
|
|
||
Impaired loans (collateral dependent)
|
$
|
9,576
|
|
|
Collateral based measurements
|
|
Discount to reflect current market conditions and ultimate collectability
|
|
0% - 10% (1%)
|
|
|
|
|
|
|
|
|
||
Other real estate owned
|
$
|
859
|
|
|
Appraisals
|
|
Discount to reflect current market conditions
|
|
0% - 10% (2%)
|
December 31, 2016
|
Fair Value
|
|
Valuation Technique
|
|
Unobservable Inputs
|
|
Range (Weighted-Average)
|
||
State and municipal securities
|
$
|
5,134
|
|
|
Discounted cash flow
|
|
Maturity Call Date
US Muni BQ curve Discount rate |
|
1 month to 20 years
A- to BBB- .69% - 5% |
|
|
|
|
|
|
|
|
||
Corporate obligations and Equity securities
|
$
|
35
|
|
|
Discounted cash flow
|
|
Risk free rate
plus Premium for illiquidity |
|
3 month LIBOR
plus 200 bps |
|
|
|
|
|
|
|
|
||
Impaired loans (collateral dependent)
|
$
|
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%)
|
|
2017
|
||||||||||||||
|
Carrying
Amount |
|
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
|
Significant Other Observable Inputs
(Level 2) |
|
Significant Unobservable Inputs
(Level 3) |
||||||||
Assets at December 31:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
154,905
|
|
|
$
|
154,905
|
|
|
|
|
|
|
|
||
Interest-bearing time deposits
|
35,027
|
|
|
35,027
|
|
|
|
|
|
|
|
||||
Investment securities available for sale
|
999,947
|
|
|
|
|
|
$
|
995,969
|
|
|
$
|
3,978
|
|
||
Investment securities held to maturity
|
560,655
|
|
|
|
|
|
556,305
|
|
|
11,903
|
|
||||
Loans held for sale
|
7,216
|
|
|
|
|
|
7,216
|
|
|
|
|
||||
Loans
|
6,676,167
|
|
|
|
|
|
|
|
|
6,534,877
|
|
||||
Federal Home Loan Bank stock
|
23,825
|
|
|
|
|
|
23,825
|
|
|
|
|
||||
Interest rate swap asset
|
7,323
|
|
|
|
|
|
7,323
|
|
|
|
|
||||
Interest receivable
|
37,130
|
|
|
|
|
|
37,130
|
|
|
|
|
||||
Liabilities at December 31:
|
|
|
|
|
|
|
|
||||||||
Deposits
|
$
|
7,172,530
|
|
|
$
|
5,741,019
|
|
|
$
|
1,406,526
|
|
|
|
|
|
Borrowings:
|
|
|
|
|
|
|
|
||||||||
Federal funds purchased
|
144,038
|
|
|
|
|
|
144,038
|
|
|
|
|
||||
Securities sold under repurchase agreements
|
136,623
|
|
|
|
|
|
136,562
|
|
|
|
|
||||
Federal Home Loan Bank advances
|
414,377
|
|
|
|
|
|
361,085
|
|
|
|
|
||||
Subordinated debentures and term loans
|
139,349
|
|
|
|
|
|
120,085
|
|
|
|
|
||||
Interest rate swap liability
|
8,688
|
|
|
|
|
|
8,688
|
|
|
|
|
||||
Interest payable
|
4,390
|
|
|
|
|
|
4,390
|
|
|
|
|
|
2016
|
||||||||||||||
|
Carrying
Amount |
|
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
|
Significant Other Observable Inputs
(Level 2) |
|
Significant Unobservable Inputs
(Level 3) |
||||||||
Assets at December 31:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
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 asset
|
6,310
|
|
|
|
|
|
6,310
|
|
|
|
|
||||
Interest receivable
|
26,194
|
|
|
|
|
|
26,194
|
|
|
|
|
||||
Liabilities at December 31:
|
|
|
|
|
|
|
|
||||||||
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
|
|
|
|
|
2017
|
|
2016
|
||||
Amounts of commitments:
|
|
|
|
||||
Loan commitments to extend credit
|
$
|
2,482,641
|
|
|
$
|
2,057,878
|
|
Standby letters of credit
|
$
|
43,526
|
|
|
$
|
46,010
|
|
|
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
|
9,645
|
|
|
9
|
|
|
2,686
|
|
|
12,340
|
|
||||
Amounts reclassified from accumulated other comprehensive income
|
(1,710
|
)
|
|
640
|
|
|
(597
|
)
|
|
(1,667
|
)
|
||||
Period change
|
7,935
|
|
|
649
|
|
|
2,089
|
|
|
10,673
|
|
||||
Balance at December 31, 2017
|
$
|
8,970
|
|
|
$
|
(1,125
|
)
|
|
$
|
(10,753
|
)
|
|
$
|
(2,908
|
)
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Balance at December 31, 2015
|
$
|
12,325
|
|
|
$
|
(2,347
|
)
|
|
$
|
(11,340
|
)
|
|
$
|
(1,362
|
)
|
Other comprehensive income before reclassifications
|
(9,087
|
)
|
|
(240
|
)
|
|
(470
|
)
|
|
(9,797
|
)
|
||||
Amounts reclassified from accumulated other comprehensive income
|
(2,203
|
)
|
|
813
|
|
|
(1,032
|
)
|
|
(2,422
|
)
|
||||
Period change
|
(11,290
|
)
|
|
573
|
|
|
(1,502
|
)
|
|
(12,219
|
)
|
||||
Balance at December 31, 2016
|
$
|
1,035
|
|
|
$
|
(1,774
|
)
|
|
$
|
(12,842
|
)
|
|
$
|
(13,581
|
)
|
|
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Year Ended December 31,
|
|
|
||||||||||
Details about Accumulated Other Comprehensive Income (Loss) Components
|
2017
|
|
2016
|
|
2015
|
|
Affected Line Item in the Statements of Income
|
||||||
Unrealized gains (losses) on available for sale securities
(1)
|
|
|
|
|
|
|
|
||||||
Realized securities gains reclassified into income
|
$
|
2,631
|
|
|
$
|
3,389
|
|
|
$
|
2,670
|
|
|
Other income - net realized gains on sales of available for sale securities
|
Related income tax expense
|
(921
|
)
|
|
(1,186
|
)
|
|
(934
|
)
|
|
Income tax expense
|
|||
|
$
|
1,710
|
|
|
$
|
2,203
|
|
|
$
|
1,736
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized gains (losses) on cash flow hedges
(2)
|
|
|
|
|
|
|
|
||||||
Interest rate contracts
|
$
|
(985
|
)
|
|
$
|
(1,250
|
)
|
|
$
|
(1,427
|
)
|
|
Interest expense - subordinated debentures and term loans
|
Related income tax benefit
|
345
|
|
|
437
|
|
|
499
|
|
|
Income tax expense
|
|||
|
$
|
(640
|
)
|
|
$
|
(813
|
)
|
|
$
|
(928
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized gains (losses) on defined benefit plans
|
|
|
|
|
|
|
|
||||||
Amortization of net loss and prior service costs
|
$
|
806
|
|
|
$
|
1,588
|
|
|
$
|
305
|
|
|
Other expenses - salaries and employee benefits
|
Related income tax benefit (expense)
|
(209
|
)
|
|
(556
|
)
|
|
(107
|
)
|
|
Income tax expense
|
|||
|
$
|
597
|
|
|
$
|
1,032
|
|
|
$
|
198
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total reclassifications for the period, net of tax
|
$
|
1,667
|
|
|
$
|
2,422
|
|
|
1,006
|
|
|
|
|
|
|
|
|
Prompt Corrective Action Thresholds
|
|||||||||||||||
|
Actual
|
|
Adequately Capitalized
|
|
Well Capitalized
|
|||||||||||||||
December 31, 2017
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
Total risk-based capital to risk-weighted assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
First Merchants Corporation
|
$
|
1,048,757
|
|
|
13.69
|
%
|
|
$
|
612,848
|
|
|
8.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
First Merchants Bank
|
1,016,355
|
|
|
13.17
|
|
|
617,477
|
|
|
8.00
|
|
|
$
|
771,847
|
|
|
10.00
|
%
|
||
Tier 1 capital to risk-weighted assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
First Merchants Corporation
|
$
|
908,725
|
|
|
11.86
|
%
|
|
$
|
459,636
|
|
|
6.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
First Merchants Bank
|
941,323
|
|
|
12.20
|
|
|
463,108
|
|
|
6.00
|
|
|
$
|
617,477
|
|
|
8.00
|
%
|
||
Common equity tier 1 capital to risk-weighted assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
First Merchants Corporation
|
$
|
842,806
|
|
|
11.00
|
%
|
|
$
|
344,727
|
|
|
4.50
|
%
|
|
N/A
|
|
|
N/A
|
|
|
First Merchants Bank
|
941,323
|
|
|
12.20
|
|
|
347,331
|
|
|
4.50
|
|
|
$
|
501,700
|
|
|
6.50
|
%
|
||
Tier 1 capital to average assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
First Merchants Corporation
|
$
|
908,725
|
|
|
10.43
|
%
|
|
$
|
348,407
|
|
|
4.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
First Merchants Bank
|
941,323
|
|
|
10.83
|
|
|
347,794
|
|
|
4.00
|
|
|
$
|
434,742
|
|
|
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
|
%
|
||
Common equity tier 1 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
|
%
|
|
Years Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Stock and ESPP Options
|
|
|
|
|
|
||||||
Pre-tax compensation expense
|
$
|
121
|
|
|
$
|
76
|
|
|
$
|
101
|
|
Income tax expense (benefit)
|
(322
|
)
|
|
18
|
|
|
4
|
|
|||
Stock and ESPP option expense, net of income taxes
|
$
|
(201
|
)
|
|
$
|
94
|
|
|
$
|
105
|
|
Restricted Stock Awards
|
|
|
|
|
|
||||||
Pre-tax compensation expense
|
$
|
2,706
|
|
|
$
|
2,524
|
|
|
$
|
2,169
|
|
Income tax benefit
|
(1,561
|
)
|
|
(883
|
)
|
|
(749
|
)
|
|||
Restricted stock awards expense, net of income taxes
|
$
|
1,145
|
|
|
$
|
1,641
|
|
|
$
|
1,420
|
|
Total Share-Based Compensation:
|
|
|
|
|
|
||||||
Pre-tax compensation expense
|
$
|
2,827
|
|
|
$
|
2,600
|
|
|
$
|
2,270
|
|
Income tax benefit
|
(1,883
|
)
|
|
(865
|
)
|
|
(745
|
)
|
|||
Total share-based compensation expense, net of income taxes
|
$
|
944
|
|
|
$
|
1,735
|
|
|
$
|
1,525
|
|
|
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
|
|
|
|
|
|
||
Exercised
|
(104,748
|
)
|
|
$
|
22.90
|
|
|
|
|
|
||
Canceled
|
(2,811
|
)
|
|
$
|
22.21
|
|
|
|
|
|
||
Outstanding December 31, 2017
|
152,652
|
|
|
$
|
16.71
|
|
|
2.36
|
|
$
|
3,870,499
|
|
Vested and Expected to Vest at December 31, 2017
|
152,652
|
|
|
$
|
16.71
|
|
|
2.36
|
|
$
|
3,870,499
|
|
Exercisable at December 31, 2017
|
152,652
|
|
|
$
|
16.71
|
|
|
2.36
|
|
$
|
3,870,499
|
|
|
Number of
Shares |
|
Weighted-Average
Grant Date Fair Value |
|||
Unvested RSAs at January 1, 2017
|
328,347
|
|
|
$
|
22.87
|
|
Granted
|
132,710
|
|
|
$
|
40.47
|
|
Forfeited
|
(4,702
|
)
|
|
$
|
23.63
|
|
Vested
|
(89,362
|
)
|
|
$
|
20.53
|
|
Unvested RSAs at December 31, 2017
|
366,993
|
|
|
$
|
29.79
|
|
|
2017
|
|
2016
|
||||
Change in Benefit Obligation:
|
|
|
|
||||
Benefit obligation at beginning of year
|
$
|
84,090
|
|
|
$
|
71,747
|
|
Service cost
|
10
|
|
|
9
|
|
||
Interest cost
|
3,353
|
|
|
3,273
|
|
||
Actuarial loss
|
3,686
|
|
|
2,679
|
|
||
Benefits paid
|
(5,179
|
)
|
|
(5,263
|
)
|
||
Plan settlements
|
(3,803
|
)
|
|
|
|||
Net transfers in from Ameriana acquisition
|
|
|
|
11,645
|
|
||
Benefit obligation at end of year
|
$
|
82,157
|
|
|
$
|
84,090
|
|
|
|
|
|
||||
Change in Plan Assets:
|
|
|
|
||||
Fair value of plan assets at beginning of year
|
$
|
83,557
|
|
|
$
|
71,396
|
|
Actual return on plan assets
|
9,968
|
|
|
6,959
|
|
||
Employer contributions
|
670
|
|
|
739
|
|
||
Benefits paid
|
(5,179
|
)
|
|
(5,263
|
)
|
||
Plan settlements
|
(3,803
|
)
|
|
|
|||
Ameriana acquisition
|
|
|
|
9,726
|
|
||
End of year
|
85,213
|
|
|
83,557
|
|
||
Funded status at end of year
|
$
|
3,056
|
|
|
$
|
(533
|
)
|
|
|
|
|
||||
Assets and Liabilities Recognized in the Balance Sheets:
|
|
|
|
||||
Deferred tax asset
|
$
|
3,474
|
|
|
$
|
7,041
|
|
Assets
|
$
|
7,660
|
|
|
$
|
5,028
|
|
Liabilities
|
$
|
4,604
|
|
|
$
|
5,561
|
|
|
|
|
|
||||
Amounts Recognized in Accumulated Other Comprehensive Income Not Yet Recognized as Components of Net Periodic Cost, net of tax, consist of:
|
|
|
|
||||
Accumulated loss
|
$
|
(10,360
|
)
|
|
$
|
(12,624
|
)
|
Prior service cost
|
(393
|
)
|
|
(451
|
)
|
||
|
$
|
(10,753
|
)
|
|
$
|
(13,075
|
)
|
|
December 31, 2017
|
|
December 31, 2016
|
||||
Projected benefit obligation
|
$
|
4,604
|
|
|
$
|
5,561
|
|
Accumulated benefit obligation
|
$
|
4,604
|
|
|
$
|
5,561
|
|
Fair value of plan assets
|
$
|
—
|
|
|
$
|
—
|
|
|
December 31, 2017
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||
Service cost
|
$
|
10
|
|
|
$
|
9
|
|
|
$
|
55
|
|
Interest cost
|
3,353
|
|
|
3,273
|
|
|
3,087
|
|
|||
Expected return on plan assets
|
(4,778
|
)
|
|
(4,508
|
)
|
|
(4,471
|
)
|
|||
Amortization of prior service costs
|
90
|
|
|
79
|
|
|
64
|
|
|||
Amortization of net loss
|
1,218
|
|
|
1,656
|
|
|
1,722
|
|
|||
Settlement loss recognized
|
761
|
|
|
|
|
|
|||||
Net periodic pension cost
|
$
|
654
|
|
|
$
|
509
|
|
|
$
|
457
|
|
|
December 31, 2017
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||
Net periodic pension cost
|
$
|
654
|
|
|
$
|
509
|
|
|
$
|
457
|
|
Net gain (loss)
|
1,504
|
|
|
(228
|
)
|
|
1,299
|
|
|||
Amortization of loss
|
1,979
|
|
|
1,656
|
|
|
1,722
|
|
|||
Amortization of prior service cost
|
90
|
|
|
79
|
|
|
64
|
|
|||
Total recognized in other comprehensive income
|
3,573
|
|
|
1,507
|
|
|
3,085
|
|
|||
Total recognized in net periodic pension cost and other comprehensive income
|
$
|
2,919
|
|
|
$
|
998
|
|
|
$
|
2,628
|
|
|
December 31, 2017
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||
Amortization of net loss
|
$
|
(830
|
)
|
|
$
|
(1,208
|
)
|
|
$
|
(1,505
|
)
|
Amortization of prior service cost
|
(87
|
)
|
|
(90
|
)
|
|
(61
|
)
|
|||
Total
|
$
|
(917
|
)
|
|
$
|
(1,298
|
)
|
|
$
|
(1,566
|
)
|
|
December 31, 2017
|
|
December 31, 2016
|
|
December 31, 2015
|
|||
Weighted-average Assumptions Used to Determine Benefit Obligation:
|
|
|
|
|
|
|||
Discount rate
|
3.60
|
%
|
|
4.20
|
%
|
|
4.50
|
%
|
Rate of compensation increase for accruing active participants
|
n/a
|
|
|
3.00
|
%
|
|
3.00
|
%
|
Weighted-average Assumptions Used to Determine Cost:
|
|
|
|
|
|
|||
Discount rate
|
4.20
|
%
|
|
4.50
|
%
|
|
4.00
|
%
|
Expected return on plan assets
|
6.00
|
%
|
|
6.00
|
%
|
|
6.00
|
%
|
Rate of compensation increase for accruing active participants
|
n/a
|
|
|
3.00
|
%
|
|
3.00
|
%
|
2018
|
$
|
5,586
|
|
2019
|
5,641
|
|
|
2020
|
5,609
|
|
|
2021
|
5,476
|
|
|
2022
|
5,377
|
|
|
After 2022
|
25,652
|
|
|
|
$
|
53,341
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||
|
Actual
|
|
Target
|
|
Actual
|
|
Target
|
||||
Cash and cash equivalents
|
6.0
|
%
|
|
3.0
|
%
|
|
4.5
|
%
|
|
3.0
|
%
|
Equity securities
|
52.4
|
|
|
55.0
|
|
|
55.8
|
|
|
55.0
|
|
Debt securities
|
39.6
|
|
|
40.0
|
|
|
37.7
|
|
|
40.0
|
|
Alternative investments
|
2.0
|
|
|
2.0
|
|
|
2.0
|
|
|
2.0
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
Fair Value Measurements Using
|
||||||||||
|
|
|
Quoted Prices in
Active Markets for
Identical Assets
|
|
Significant Other Observable Inputs
|
|
Significant
Unobservable
Inputs
|
||||||
December 31, 2017
|
Fair Value
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||||
Cash & Cash Equivalents
|
$
|
5,123
|
|
|
$
|
5,123
|
|
|
|
|
|
||
Corporate Bonds and Notes
|
14,598
|
|
|
14,598
|
|
|
|
|
|
||||
Government Agency and Municipal Bonds and Notes
|
5,679
|
|
|
|
|
$
|
5,679
|
|
|
|
|||
Certificates of Deposit
|
1,254
|
|
|
|
|
1,254
|
|
|
|
||||
Party-in-Interest Investments
|
|
|
|
|
|
|
|
||||||
Common Stock
|
2,545
|
|
|
2,545
|
|
|
|
|
|
||||
Mutual Funds
|
|
|
|
|
|
|
|
||||||
Taxable Bond
|
12,198
|
|
|
12,198
|
|
|
|
|
|
|
|||
Large Cap Equity
|
22,137
|
|
|
22,137
|
|
|
|
|
|
||||
Mid Cap Equity
|
10,676
|
|
|
10,676
|
|
|
|
|
|
||||
Small Cap Equity
|
5,264
|
|
|
5,264
|
|
|
|
|
|
||||
International Equity
|
4,030
|
|
|
4,030
|
|
|
|
|
|
||||
Specialty Alternative Equity
|
1,709
|
|
|
1,709
|
|
|
|
|
|
||||
|
$
|
85,213
|
|
|
$
|
78,280
|
|
|
$
|
6,933
|
|
|
|
|
|
|
Fair Value Measurements Using
|
||||||||||
|
|
|
Quoted Prices in
Active Markets for Identical Assets |
|
Significant Other Observable Inputs
|
|
Significant
Unobservable Inputs |
||||||
December 31, 2016
|
Fair Value
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||||
Cash & Cash Equivalents
|
$
|
3,778
|
|
|
$
|
3,778
|
|
|
|
|
|
||
Corporate Bonds and Notes
|
10,646
|
|
|
10,646
|
|
|
|
|
|
||||
Government Agency and Municipal Bonds and Notes
|
6,855
|
|
|
|
|
$
|
6,855
|
|
|
|
|||
Certificates of Deposit
|
1,268
|
|
|
|
|
1,268
|
|
|
|
||||
Party-in-Interest Investments
|
|
|
|
|
|
|
|
||||||
Common Stock
|
2,278
|
|
|
2,278
|
|
|
|
|
|
||||
Common Bond Fund
|
4,744
|
|
|
|
|
4,744
|
|
|
|
||||
Common Equity Fund
|
6,626
|
|
|
|
|
6,626
|
|
|
|
||||
Mutual Funds
|
|
|
|
|
|
|
|
||||||
Taxable Bond
|
7,974
|
|
|
7,974
|
|
|
|
|
|
||||
Large Cap Equity
|
19,611
|
|
|
19,611
|
|
|
|
|
|
||||
Mid Cap Equity
|
10,304
|
|
|
10,304
|
|
|
|
|
|
||||
Small Cap Equity
|
4,680
|
|
|
4,680
|
|
|
|
|
|
||||
International Equity
|
3,093
|
|
|
3,093
|
|
|
|
|
|
||||
Specialty Alternative Equity
|
1,700
|
|
|
1,700
|
|
|
|
|
|
||||
|
$
|
83,557
|
|
|
$
|
64,064
|
|
|
$
|
19,493
|
|
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Reconciliation of Federal Statutory to Actual Tax Expense:
|
|
|
|
|
|
||||||
Federal Statutory Income Tax at 35%
|
$
|
46,758
|
|
|
$
|
38,031
|
|
|
$
|
31,867
|
|
Tax-exempt Interest Income
|
(11,127
|
)
|
|
(8,749
|
)
|
|
(7,083
|
)
|
|||
Basis Difference on Sale of Insurance Subsidiary
|
|
|
|
|
2,252
|
|
|||||
Stock Compensation
|
(893
|
)
|
|
(61
|
)
|
|
(31
|
)
|
|||
Earnings on Life Insurance
|
(2,302
|
)
|
|
(1,486
|
)
|
|
(1,012
|
)
|
|||
Tax Credits
|
(811
|
)
|
|
(564
|
)
|
|
(583
|
)
|
|||
Tax Cuts and Jobs Act - Rate Reform Impact
|
5,120
|
|
|
|
|
|
|||||
Other
|
779
|
|
|
438
|
|
|
255
|
|
|||
Income Tax Expense
|
$
|
37,524
|
|
|
$
|
27,609
|
|
|
$
|
25,665
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Income Tax Expense for the Year Ended December 31:
|
|
|
|
|
|
||||||
Currently Payable:
|
|
|
|
|
|
||||||
Federal
|
$
|
22,001
|
|
|
$
|
18,998
|
|
|
$
|
21,221
|
|
State
|
|
|
|
|
|
|
|||||
Deferred:
|
|
|
|
|
|
||||||
Federal
|
9,969
|
|
|
8,233
|
|
|
3,952
|
|
|||
Tax Cuts and Jobs Act - Rate Reform Impact
|
5,120
|
|
|
|
|
|
|||||
State
|
434
|
|
|
378
|
|
|
492
|
|
|||
Income Tax Expense
|
$
|
37,524
|
|
|
$
|
27,609
|
|
|
$
|
25,665
|
|
|
2017
|
|
2016
|
||||
Deferred Tax Asset at December 31:
|
|
|
|
||||
Assets:
|
|
|
|
||||
Differences in Accounting for Loan Losses
|
$
|
19,526
|
|
|
$
|
26,315
|
|
Differences in Accounting for Loan Fees
|
1,458
|
|
|
1,918
|
|
||
Differences in Accounting for Loans and Securities
|
3,681
|
|
|
5,689
|
|
||
Deferred Compensation
|
4,448
|
|
|
3,471
|
|
||
Difference in Accounting for Pensions and Other Employee Benefits
|
|
|
|
83
|
|
||
Federal & State Income Tax Loss Carryforward and Credits
|
10,829
|
|
|
16,643
|
|
||
Other
|
365
|
|
|
4,210
|
|
||
Total Assets
|
40,307
|
|
|
58,329
|
|
||
Liabilities:
|
|
|
|
||||
Differences in Depreciation Methods
|
5,245
|
|
|
8,216
|
|
||
Difference in Accounting for Pensions and Other Employee Benefits
|
823
|
|
|
|
|
||
State Income Tax
|
58
|
|
|
237
|
|
||
Net Unrealized Gain on Securities Available for Sale
|
2,898
|
|
|
557
|
|
||
Gain on FDIC Modified Whole Bank Transaction
|
602
|
|
|
1,126
|
|
||
Other
|
3,897
|
|
|
623
|
|
||
Total Liabilities
|
13,523
|
|
|
10,759
|
|
||
Net Deferred Tax Asset Before Valuation Allowance
|
26,784
|
|
|
47,570
|
|
||
Valuation allowance:
|
|
|
|
||||
Beginning Balance
|
(9,815
|
)
|
|
(15,736
|
)
|
||
Decrease/(Increase) During the Year
|
2,849
|
|
|
5,921
|
|
||
Ending Balance
|
(6,966
|
)
|
|
(9,815
|
)
|
||
Net Deferred Tax Asset
|
$
|
19,818
|
|
|
$
|
37,755
|
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||||||||||||||
|
|
|
Weighted-Average Shares
|
|
|
|
|
|
Weighted-Average Shares
|
|
|
|
|
|
Weighted-Average Shares
|
|
|
|||||||||||||||
Basic net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income available to common stockholders
|
$
|
96,070
|
|
|
45,181,221
|
|
|
$
|
2.13
|
|
|
$
|
81,051
|
|
|
40,767,343
|
|
|
$
|
1.99
|
|
|
$
|
65,384
|
|
|
37,816,399
|
|
|
$
|
1.73
|
|
Effect of dilutive stock options and restricted stock awards
|
|
|
221,757
|
|
|
|
|
|
|
245,790
|
|
|
|
|
|
|
271,834
|
|
|
|
||||||||||||
Diluted net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income available to common stockholders
|
$
|
96,070
|
|
|
45,402,978
|
|
|
$
|
2.12
|
|
|
$
|
81,051
|
|
|
41,013,133
|
|
|
$
|
1.98
|
|
|
$
|
65,384
|
|
|
38,088,233
|
|
|
$
|
1.72
|
|
|
2017
|
|
2016
|
||||||||||||||||||||||||||||
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
||||||||||||||||
Interest income
|
$
|
68,234
|
|
|
$
|
71,467
|
|
|
$
|
84,847
|
|
|
$
|
90,348
|
|
|
$
|
61,227
|
|
|
$
|
62,704
|
|
|
$
|
64,376
|
|
|
$
|
65,005
|
|
Interest expense
|
7,235
|
|
|
8,367
|
|
|
10,427
|
|
|
11,583
|
|
|
6,772
|
|
|
6,742
|
|
|
6,694
|
|
|
6,631
|
|
||||||||
Net interest income
|
60,999
|
|
|
63,100
|
|
|
74,420
|
|
|
78,765
|
|
|
54,455
|
|
|
55,962
|
|
|
57,682
|
|
|
58,374
|
|
||||||||
Provision for loan losses
|
2,385
|
|
|
2,875
|
|
|
2,083
|
|
|
1,800
|
|
|
550
|
|
|
790
|
|
|
1,900
|
|
|
2,417
|
|
||||||||
Net interest income after provision for loan losses
|
58,614
|
|
|
60,225
|
|
|
72,337
|
|
|
76,965
|
|
|
53,905
|
|
|
55,172
|
|
|
55,782
|
|
|
55,957
|
|
||||||||
Non-interest income
|
14,846
|
|
|
18,434
|
|
|
18,668
|
|
|
19,061
|
|
|
15,837
|
|
|
16,385
|
|
|
16,861
|
|
|
16,120
|
|
||||||||
Non-interest expense
|
43,099
|
|
|
47,316
|
|
|
58,708
|
|
|
56,433
|
|
|
46,475
|
|
|
44,835
|
|
|
44,115
|
|
|
41,934
|
|
||||||||
Income before income tax expense
|
30,361
|
|
|
31,343
|
|
|
32,297
|
|
|
39,593
|
|
|
23,267
|
|
|
26,722
|
|
|
28,528
|
|
|
30,143
|
|
||||||||
Income tax expense
|
7,168
|
|
|
7,207
|
|
|
7,939
|
|
|
15,210
|
|
|
5,574
|
|
|
6,716
|
|
|
7,469
|
|
|
7,850
|
|
||||||||
Net income available to common stockholders
|
$
|
23,193
|
|
|
$
|
24,136
|
|
|
$
|
24,358
|
|
|
$
|
24,383
|
|
|
$
|
17,693
|
|
|
$
|
20,006
|
|
|
$
|
21,059
|
|
|
$
|
22,293
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic EPS
|
$
|
0.57
|
|
|
$
|
0.57
|
|
|
$
|
0.50
|
|
|
$
|
0.49
|
|
|
$
|
0.43
|
|
|
$
|
0.50
|
|
|
$
|
0.51
|
|
|
$
|
0.55
|
|
Diluted EPS
|
$
|
0.56
|
|
|
$
|
0.57
|
|
|
$
|
0.50
|
|
|
$
|
0.49
|
|
|
$
|
0.43
|
|
|
$
|
0.49
|
|
|
$
|
0.51
|
|
|
$
|
0.55
|
|
Average Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic
|
40,984,481
|
|
|
42,038,824
|
|
|
48,431,880
|
|
|
49,144,310
|
|
|
40,690,573
|
|
|
40,751,720
|
|
|
40,779,423
|
|
|
40,846,650
|
|
||||||||
Diluted
|
41,220,586
|
|
|
42,243,539
|
|
|
48,643,774
|
|
|
49,379,303
|
|
|
40,916,972
|
|
|
40,969,111
|
|
|
41,025,784
|
|
|
41,124,179
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||
Assets
|
|
|
|
||||
Cash
|
$
|
31,527
|
|
|
$
|
31,944
|
|
Investment in subsidiaries
|
1,411,360
|
|
|
978,291
|
|
||
Investment securities
|
31
|
|
|
18,765
|
|
||
Premises and equipment
|
1,252
|
|
|
1,260
|
|
||
Interest receivable
|
5
|
|
|
47
|
|
||
Goodwill
|
448
|
|
|
448
|
|
||
Cash surrender value of life insurance
|
787
|
|
|
1,082
|
|
||
Tax asset, deferred and receivable
|
|
|
|
521
|
|
||
Other assets
|
3,480
|
|
|
5,274
|
|
||
Total assets
|
$
|
1,448,890
|
|
|
$
|
1,037,632
|
|
Liabilities
|
|
|
|
||||
Subordinated debentures and term loans
|
$
|
138,241
|
|
|
$
|
127,427
|
|
Interest payable
|
968
|
|
|
880
|
|
||
Other liabilities
|
6,218
|
|
|
7,668
|
|
||
Total liabilities
|
145,427
|
|
|
135,975
|
|
||
Stockholders' equity
|
1,303,463
|
|
|
901,657
|
|
||
Total liabilities and stockholders' equity
|
$
|
1,448,890
|
|
|
$
|
1,037,632
|
|
|
December 31, 2017
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||
Income
|
|
|
|
|
|
||||||
Dividends from subsidiaries
|
$
|
33,014
|
|
|
$
|
33,546
|
|
|
$
|
39,032
|
|
Gain on the sale of insurance subsidiary
|
|
|
|
|
|
|
8,265
|
|
|||
Gain on cancellation of subordinated debentures
|
|
|
|
|
|
|
1,250
|
|
|||
Loss on sale of available for sale securities
|
(50
|
)
|
|
|
|
|
|||||
Other income
|
350
|
|
|
143
|
|
|
197
|
|
|||
Total income
|
33,314
|
|
|
33,689
|
|
|
48,744
|
|
|||
Expenses
|
|
|
|
|
|
||||||
Interest expense
|
7,572
|
|
|
7,185
|
|
|
6,661
|
|
|||
Salaries and employee benefits
|
4,118
|
|
|
639
|
|
|
3,023
|
|
|||
Net occupancy and equipment expenses
|
797
|
|
|
832
|
|
|
464
|
|
|||
Other outside services
|
1,810
|
|
|
967
|
|
|
1,455
|
|
|||
Professional services
|
442
|
|
|
279
|
|
|
636
|
|
|||
Other expenses
|
(385
|
)
|
|
(470
|
)
|
|
1,234
|
|
|||
Total expenses
|
14,354
|
|
|
9,432
|
|
|
13,473
|
|
|||
Income before income tax benefit (expense) and equity in undistributed income of subsidiaries
|
18,960
|
|
|
24,257
|
|
|
35,271
|
|
|||
Income tax benefit (expense)
|
5,946
|
|
|
3,243
|
|
|
(974
|
)
|
|||
Income before equity in undistributed income of subsidiaries
|
24,906
|
|
|
27,500
|
|
|
34,297
|
|
|||
Equity in undistributed income of subsidiaries
|
71,164
|
|
|
53,551
|
|
|
31,087
|
|
|||
Net income available to common stockholders
|
$
|
96,070
|
|
|
$
|
81,051
|
|
|
$
|
65,384
|
|
|
|
|
|
|
|
||||||
Net income
|
$
|
96,070
|
|
|
$
|
81,051
|
|
|
$
|
65,384
|
|
Other comprehensive income (loss)
|
10,673
|
|
|
(12,219
|
)
|
|
268
|
|
|||
Comprehensive income
|
$
|
106,743
|
|
|
$
|
68,832
|
|
|
$
|
65,652
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Cash Flow From Operating Activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
96,070
|
|
|
$
|
81,051
|
|
|
$
|
65,384
|
|
Adjustments to Reconcile Net Income to Net Cash:
|
|
|
|
|
|
||||||
Share-based compensation
|
1,215
|
|
|
1,166
|
|
|
843
|
|
|||
Distributions in excess of (equity in undistributed) income of subsidiaries
|
(71,164
|
)
|
|
(53,551
|
)
|
|
(31,087
|
)
|
|||
Gain on sale of insurance subsidiary
|
|
|
|
|
(8,265
|
)
|
|||||
Gain on cancellation of subordinated debentures
|
|
|
|
|
(1,250
|
)
|
|||||
Loss on sale of available for sale securities
|
50
|
|
|
|
|
|
|||||
Net Change in:
|
|
|
|
|
|
||||||
Other assets
|
3,358
|
|
|
833
|
|
|
(441
|
)
|
|||
Other liabilities
|
(1,900
|
)
|
|
849
|
|
|
(1,486
|
)
|
|||
Investment in subsidiaries - operating activities
|
1,112
|
|
|
(1,938
|
)
|
|
197
|
|
|||
Net cash provided by operating activities
|
28,741
|
|
|
28,410
|
|
|
23,895
|
|
|||
Cash Flow From Investing Activities:
|
|
|
|
|
|
||||||
Purchase of securities available for sale
|
|
|
|
(19,804
|
)
|
|
|
||||
Net cash received (paid) in acquisition
|
37
|
|
|
|
|
|
(14,500
|
)
|
|||
Proceeds from business divestitures
|
|
|
|
|
|
16,000
|
|
||||
Other
|
|
|
|
|
|
|
575
|
|
|||
Net cash provided (used) in investing activities
|
37
|
|
|
(19,804
|
)
|
|
2,075
|
|
|||
Cash Flow From Financing Activities:
|
|
|
|
|
|
||||||
Cash dividends
|
(31,820
|
)
|
|
(22,203
|
)
|
|
(15,654
|
)
|
|||
Repayment of borrowings
|
|
|
|
|
|
|
(3,750
|
)
|
|||
Stock issued under employee benefit plans
|
519
|
|
|
462
|
|
|
460
|
|
|||
Stock issued under dividend reinvestment and stock purchase plan
|
991
|
|
|
835
|
|
|
661
|
|
|||
Stock options exercised
|
2,398
|
|
|
2,602
|
|
|
1,531
|
|
|||
Stock redeemed
|
(1,283
|
)
|
|
(1,980
|
)
|
|
(1,640
|
)
|
|||
Net cash used by financing activities
|
(29,195
|
)
|
|
(20,284
|
)
|
|
(18,392
|
)
|
|||
Cash, beginning of the year
|
31,944
|
|
|
43,622
|
|
|
36,044
|
|
|||
Cash, end of year
|
$
|
31,527
|
|
|
$
|
31,944
|
|
|
$
|
43,622
|
|
•
|
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.
|
Exhibit No
:
|
Description of Exhibits
:
|
2.1
|
|
2.2
|
|
3.1
|
|
3.2
|
|
3.3
|
|
4.1
|
|
4.2
|
|
4.3
|
|
4.4
|
|
4.5
|
|
4.6
|
|
4.7
|
|
10.1
|
|
10.2
|
|
10.3
|
|
10.4
|
|
10.5
|
|
10.6
|
|
10.7
|
|
10.8
|
10.9
|
|
10.10
|
|
10.11
|
|
10.12
|
|
10.13
|
|
10.14
|
|
10.15
|
|
21
|
|
23
|
|
24
|
|
31.1
|
|
31.2
|
|
32
|
|
99.1
|
|
101.INS
|
XBRL Instance Document (3)
|
101.SCH
|
XBRL Taxonomy Extension Schema Document (3)
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document (3)
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document (3)
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document (3)
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document (3)
|
|
|
|
|
|
|
|
(1) Management contract or compensatory plan
|
|
(2) Filed herewith.
|
|
(3) Furnished herewith.
|
|
FIRST MERCHANTS CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Michael C. Rechin
|
|
|
Michael C. Rechin,
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
|
|
/s/ Michael C. Rechin
|
/s/ Mark K. Hardwick
|
Michael C. Rechin, President and
|
Mark K. Hardwick, Executive Vice President,
|
Chief Executive Officer
|
Chief Financial Officer and Chief Operating Officer
|
(Principal Executive Officer)
|
(Principal Financial and Accounting Officer)
|
|
|
/s/ Michael R. Becher*
|
/s/ Michael C. Marhenke*
|
Michael R. Becher, Director
|
Michael C. Rechin, Director
|
|
|
/s/ Michael J. Fisher*
|
/s/ Charles E. Schalliol*
|
Michael J. Fisher, Director
|
Charles E. Schalliol, Director
|
|
|
/s/ F. Howard Halderman*
|
/s/ Patrick A. Sherman*
|
F. Howard Halderman, Director
|
Patrick A. Sherman, Director
|
|
|
/s/ William L. Hoy*
|
/s/ Terry L. Walker*
|
William L. Hoy, Director
|
Terry L. Walker, Director
|
|
|
/s/ Gary J. Lehman*
|
/s/ Jean L. Wojtowicz*
|
Gary J. Lehman, Director
|
Jean L. Wojtowicz, Director
|
|
|
/s/ Michael C. Rechin
|
|
Michael C. Rechin, Director
|
|
|
|
*
|
By Mark K. Hardwick as Attorney-in Fact pursuant to a Limited Power of Attorney executed by the directors listed above, which Power of Attorney is being filed with the Securities and Exchange Commission as an exhibit hereto.
|
|
/s/ Mark K. Hardwick
|
|
|
Mark K. Hardwick
|
|
|
As Attorney-in-Fact
March 1, 2018
|
|
I.
|
Purpose
|
II.
|
Administration
|
III.
|
Covered Individuals by Officer Level/Role
|
A.
|
President and Chief Executive Officer of FMC;
|
B.
|
Executive Vice Presidents;
|
C.
|
Executive Officers, Non-Bank Presidents and Regional Presidents;
|
D.
|
Selected Senior Leadership
|
E.
|
Department Heads, Division Heads and Other Management Leadership; and
|
IV.
|
Implementation Parameters
|
A.
|
The FMC CEO and EVP earnings component payouts will be determined by FMC EPS calculated on a diluted GAAP basis.
|
B.
|
Payouts to participants on their respective region or line of business will be based on their actual results as compared to plan.
|
C.
|
When utilized, balanced scorecards will be tailored to each unit incorporating a specific weighting on various operating initiatives as set by the CEO, EVPs and SVP of HR. Balanced scorecard metrics are shown in Section V.
|
V.
|
Plan Structure
|
Payout %
|
50%
|
60%
|
70%
|
80%
|
90%
|
100%
|
110%
|
120%
|
130%
|
140%
|
150%
|
200%
|
EPS
|
$2.76
|
$2.80
|
$2.84
|
$2.88
|
$2.92
|
$2.96
|
$3.00
|
$3.04
|
$3.08
|
$3.12
|
$3.16
|
$3.36
|
Consolidated Efficiency Ratio
|
n/a
|
.5437
|
.5337
|
.5237
|
0.51%
|
50.37%
|
49.87%
|
49.37%
|
48.87%
|
48.37%
|
47.87%
|
n/a
|
Region Commercial LOB Net Contribution
|
n/a
|
n/a
|
0.85
|
90%
|
95%
|
100%
|
105%
|
110%
|
115%
|
120%
|
125%
|
n/a
|
Region Commercial LOB Operating Revenue
|
n/a
|
n/a
|
0.85
|
90%
|
95%
|
100%
|
105%
|
110%
|
115%
|
120%
|
125%
|
n/a
|
Regional Operating Revenue
|
n/a
|
n/a
|
0.85
|
90%
|
95%
|
100%
|
105%
|
110%
|
115%
|
120%
|
125%
|
n/a
|
Private Wealth LOB Net Contribution
|
n/a
|
n/a
|
85%
|
90%
|
95%
|
100%
|
105%
|
110%
|
115%
|
120%
|
125%
|
n/a
|
Private Wealth LOB Operating Revenue
|
n/a
|
n/a
|
85%
|
90%
|
95%
|
100%
|
105%
|
110%
|
115%
|
120%
|
125%
|
n/a
|
Retail LOB Net Contribution
|
n/a
|
n/a
|
85%
|
90%
|
95%
|
100%
|
105%
|
110%
|
115%
|
120%
|
125%
|
n/a
|
Retail LOB Operating Revenue
|
n/a
|
n/a
|
85%
|
90%
|
95%
|
100%
|
105%
|
110%
|
115%
|
120%
|
125%
|
n/a
|
Mortgage Banking Net Contribution
|
n/a
|
n/a
|
85%
|
90%
|
95%
|
100%
|
105%
|
110%
|
115%
|
120%
|
125%
|
n/a
|
Mortgage LOB Operating Revenue
|
n/a
|
n/a
|
0.85
|
90%
|
95%
|
100%
|
105%
|
110%
|
115%
|
120%
|
125%
|
n/a
|
Specialty Lending LOB Net Contribution
|
n/a
|
n/a
|
0.85
|
90%
|
95%
|
100%
|
105%
|
110%
|
115%
|
120%
|
125%
|
n/a
|
Specialty Lending LOB Operating Revenue
|
n/a
|
n/a
|
0.85
|
90%
|
95%
|
100%
|
105%
|
110%
|
115%
|
120%
|
125%
|
n/a
|
Treasury Cash Mgt LOB Net Contribution
|
n/a
|
n/a
|
85%
|
90%
|
95%
|
100%
|
105%
|
110%
|
115%
|
120%
|
125%
|
n/a
|
Treasury Cash Mgt LOB Net Contribution
|
n/a
|
n/a
|
85%
|
90%
|
95%
|
100%
|
105%
|
110%
|
115%
|
120%
|
125%
|
n/a
|
Treasury Cash Mgt LOB Operating Revenue
|
n/a
|
n/a
|
85%
|
90%
|
95%
|
100%
|
105%
|
110%
|
115%
|
120%
|
125%
|
n/a
|
Name
|
Jurisdiction of Incorporation
|
First Merchants Bank
|
U.S.
|
FMB Portfolio Management, Inc.
|
Delaware
|
FMB Properties, Inc
|
Maryland
|
FMB Risk Management, Inc.
|
Nevada
|
IAB Risk Management, Inc.
|
Nevada
|
First Merchants Capital Trust II
|
Delaware
|
Ameriana Capital Trust
|
Delaware
|
Grabill Capital Trust
|
Delaware
|
FMB Tax Credit Holdings I, LLC
|
Indiana
|
FMB-GW87, LLC
|
Indiana
|
WHCC, LLC
|
Indiana
|
/s/ Michael C. Rechin
|
|
/s/ Mark K. Hardwick
|
Michael C. Rechin, President and
|
|
Mark K. Hardwick, Executive Vice President,
|
Chief Executive Officer
|
|
Chief Financial Officer and Chief Operating Officer
|
(Principal Executive Officer)
|
|
(Principal Financial and Accounting Officer)
|
|
|
|
/s/ Michael R. Becher*
|
|
/s/ Michael C. Marhenke*
|
Michael R. Becher, Director
|
|
Michael C. Rechin, Director
|
|
|
|
/s/ Michael J. Fisher*
|
|
/s/ Charles E. Schalliol*
|
Michael J. Fisher, Director
|
|
Charles E. Schalliol, Director
|
|
|
|
/s/ F. Howard Halderman*
|
|
/s/ Patrick A. Sherman*
|
F. Howard Halderman, Director
|
|
Patrick A. Sherman, Director
|
|
|
|
/s/ William L. Hoy*
|
|
/s/ Terry L. Walker*
|
William L. Hoy, Director
|
|
Terry L. Walker, Director
|
|
|
|
/s/ Gary J. Lehman*
|
|
/s/ Jean L. Wojtowicz*
|
Gary J. Lehman, Director
|
|
Jean L. Wojtowicz, Director
|
|
|
|
/s/ Michael C. Rechin
|
|
|
Michael C. Rechin, Director
|
|
|