First Merchants Corporation (FRME) in Muncie, Ind., reported net income Tuesday of $11.4 million for the fourth quarter of 2013, a 10.7% increase from same period in 2012.
Its earnings per share of 34 cents per were eight cents above the estimates of analysts polled by Bloomberg.
First Merchants' results were aided largely by its fourth-quarter acquisition of CFS Bancorp in Munster, Ind. The deal boosted First Merchants' assets by roughly 25%, to $5.4 billion.
Also in the fourth quarter, First Merchants exited the Small Business Lending Fund by paying roughly $34 million to redeem the final 34,000 shares of preferred stock tied to the Treasury Department program.
"Our teams are energized by the closing of the CFS merger on Nov. 12, 2013, and we are looking forward to capturing the full earnings impact in our 2014 results. First Merchants president and chief executive Michael Rechin said in a press release Tuesday.
Net interest income for the fourth quarter of 2013 was $41.1 million, up 7.3% increase from the fourth quarter of 2012. Noninterest income was $15.1 million, up 6% year over year, while noninterest expense fell nearly 18%. The net interest margin fell 21 basis points to 3.89%.
First Merchants' provision for loan losses totaled $1 million, down 77.8% from the fourth quarter of 2012.