First Merchants Corporation reported consolidated earnings results for the fourth quarter and year ended December 31, 2017. For the quarter, the company reported net income available to common stockholders of $24.4 million, compared to $22.3 million during the fourth quarter of 2016.  Earnings per diluted share for the period totaled $0.49 per share compared to $0.55 during the same period in 2016. Total interest income was $90,348,000 compared with $65,005,000 for the fourth quarter of 2016. Net interest income was $78,765,000 compared with $58,374,000 for the fourth quarter of 2016. Income before income tax was $39,593,000 compared with $30,143,000 for the fourth quarter of 2016. Return on average assets was 1.06% compared with 1.26% for the fourth quarter of 2016. Return on average equity was 7.53% compared with 9.87% for the fourth quarter of 2016. Fourth quarter results included the impact of the recently enacted Tax Cuts and Jobs Act. Specifically, federal income tax expense was elevated by $5.1 million, or $0.10 per share due to deferred tax asset write-downs. Net interest income after provision for loan losses was $76,965,000 against $55,957,000 a year ago. Net interest income, which benefited both from strong volumes and margin.

For the year, the company reported net income available to common stockholders of $96.1 million, compared to $81.1 million during the same period in 2016.  Earnings per diluted share totaled $2.12, an increase of $0.14 per share, or 7.1%, over the $1.98 per share 2016. Total interest income was $314,896,000 compared with $253,312,000 in 2016. Net interest income was $277,284,000 compared with $226,473,000 in 2016. Income before income tax was $133,594,000 compared with $108,660,000 in 2016. Return on average assets was 1.17% compared with 1.17% in 2016. Return on average equity was 8.65% compared with 9.16% in 2016. Net interest income after provision for loan losses was $268,141,000 against $220,816,000 a year ago. Tangible common book value per share as at December 31, 2017 was $16.96 against $15.85 as at December 31, 2016.

The company announced net charge offs of $0.1 million for the fourth quarter of 2017.

In 2018, net interest margin on a fully equivalent basis will reflect the impact of reduced tax rates, causing approximately 12 basis point - a 12 basis point decline in reported margins. But obviously, the bank will be significantly more profitable as a result of tax reform as net interest margins and efficiency ratios are negatively impacted. And ratio is like EPS, ROA and ROE improve significantly.