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First Merchants Corporation announces net income of $36.7m.

Muncie: First Merchants Corporation announced net income of $36.7 million for the first quarter 2018, an increase of 58 percent, compared to $23.2 million during the same period in 2017.

Earnings per share for the period totaled $.74 per share, an increase of 32 percent, compared to the first quarter of 2017 result of $.56 per share. The increase in net income was driven by several factors including strong core banking performance, two acquisitions that were fully integrated during the second half of 2017 and the impact of tax reform.

The acquisition of Independent Alliance Banks, Inc. in Fort Wayne, Indiana and the acquisition of The Arlington Bank in Upper Arlington, Ohio accounted for $950 million, or 18 percent, of loan growth. Additionally, organic loan growth totaled $677 million, or 13 percent. Total deposits equaled $7.3 billion as of quarter-end, an increase of $1.7 billion, or 30 percent. Our acquisition activity accounted for deposit growth of $1.1 billion, or 20 percent, while organic deposit growth totaled $577 million, or 10 percent.

President and Chief Executive Officer Michael C. Rechin said, "Our first quarter of 2018 results reflect the strength of First Merchants' earning power and the health of our franchise marketplaces. 2017 was a busy M&A year for the company and it makes First Merchants an even stronger, more impactful player in the Midwest banking industry. Our management team is also pleased that organic balance sheet growth maintained momentum throughout the integration process. We are off to a productive start in 2018 posting a return on assets of 1.57 percent, fueled by a 51.3 percent efficiency ratio. Our organic loan and deposit growth of nearly 9 percent, should produce continued earnings improvement and stock price appreciation." Total assets equaled $9.5 billion as of quarter-end and loans totaled $6.9 billion. The Corporation's loan portfolio increased by $1.6 billion, or 31 percent, during the past twelve months.

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Publication:Daily the Pak Banker (Lahore, Pakistan)
Article Type:Financial report
Date:May 3, 2018
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