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First Merchants (FRME) in Muncie, Ind., has reduced its ties to the Treasury Department's Small Business Lending Fund.
July 3 -
First Merchants is buying CFS Bancorp in a deal that would create a $5.6 billion-asset Indiana bank.
May 13 -
First Merchants in Muncie, Ind., was looking to get closer but not too close to the Chicago market when it agreed to buy CFS Bancorp of Munster, Ind.
May 13
Fee income and better credit quality helped First Merchants Corp. (FRME) in Muncie, Ind., beat its second-quarter estimates.
The $4.3 billion-asset company reported Thursday a quarterly profit of $10 million, up 23% from the second quarter of 2012. Earnings per share were 34 cents, two cents higher than average estimates of analysts polled by Bloomberg.
Net interest income fell 4%, to $36.7 million, as its net interest margin declined by 23 basis points, to 3.88%. Total loans increased 4%, to $2.9 billion.
The bank's provision for loan losses dropped to $2 million, down from $4.5 million, and net chargeoffs fell 20%, to $2.3 million.
Noninterest income rose 7%, to $14.1 million, as service charges on deposit accounts and fiduciary fees rose.
Earlier this month, First Merchants