Financial Data and Key Metrics Changes - Total assets reached $18.3 billion, total loans at $12.7 billion, total deposits at $14.4 billion, and assets under advisement at $5.6 billion [5] - Earnings per share for the quarter totaled $0.84, or $0.95 after adjusting for a $9.1 million loss from the sale of securities [5] - Tangible book value per share increased by $4.21 or 19% year-over-year, reaching $26.64 [6] - Adjusted net interest margin improved by 7 basis points quarter-over-quarter, supporting a sub-55% efficiency ratio for the quarter [6] Business Line Data and Key Metrics Changes - Total loans grew by 0.5% on an annualized basis during the quarter, with commercial and industrial (C&I) loans growing by 1% [8][9] - The investment real estate portfolio declined over 11% throughout 2024, with a slowdown in the decline to just over $20 million in Q3 [10] - The consumer portfolio grew more than 1.5%, driven primarily by private banking and HELOC portfolios [12] Market Data and Key Metrics Changes - Total deposits grew at a 2.3% annualized rate for the quarter, with a decline of only 1.5% for the full year [13] - The commercial segment saw deposit growth despite a reduction of over $170 million in public fund balances [13] Company Strategy and Development Direction - The company is focused on organic growth in 2025 and is open to well-priced inorganic growth opportunities [4] - Completed four major technology initiatives to enhance customer acquisition strategies and improve client experiences [7] - The strategy includes a shift towards core deposit accounts, reducing focus on higher-cost public funds and time deposits [34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth momentum and the potential for higher earnings in the future due to balance sheet restructuring [5][6] - The company anticipates a $20 million to $25 million gain from the sale of branches in Q4, which will support future growth [5] - Management remains cautious about the impact of interest rate cuts on net interest income but is focused on maintaining growth [30][31] Other Important Information - The company has a strong capital position with a common equity Tier 1 ratio of 11.25% and a tangible common equity ratio of 8.76% [21] - The allowance for credit losses at quarter-end was $187.8 million, with a coverage ratio of 1.48% [18] Q&A Session Summary Question: Impact of security sales on net interest income for 2025 - Management is still budgeting for 2025 and will provide better guidance in January, but expects some margin compression in a declining rate environment [30] Question: Loan growth expectations for Q4 and 2025 - C&I growth is expected to continue in Q4, with overall loan growth projected in the mid-single digits for 2025 [39][41] Question: Increase in classified loans - The increase was primarily in investment real estate and some pressure within the C&I portfolio due to higher rates [44] Question: M&A environment and potential targets - The company is interested in banks in Indiana, Iowa, and Michigan that are underperforming and have potential for growth post-acquisition [61] Question: Tax rate expectations - The tax rate is expected to be between 13% and 14% going forward [64]

First Merchants (FRME) reported $155.98 million in revenue for the quarter ended September 2024, representing a year-over-year decline of 3.3%. EPS of $0.95 for the same period compares to $0.94 a year ago.The reported revenue represents a surprise of -2.85% over the Zacks Consensus Estimate of $160.55 million. With the consensus EPS estimate being $0.91, the EPS surprise was +4.40%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to d ...

First Merchants (FRME) came out with quarterly earnings of $0.95 per share, beating the Zacks Consensus Estimate of $0.91 per share. This compares to earnings of $0.94 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 4.40%. A quarter ago, it was expected that this bank would post earnings of $0.78 per share when it actually produced earnings of $0.68, delivering a surprise of -12.82%.Over the last four quarters, the company has ...

MUNCIE, Ind., Oct. 24, 2024 (GLOBE NEWSWIRE) -- First Merchants Corporation (NASDAQ - FRME) Third Quarter 2024 Highlights: Net income available to common stockholders was $48.7 million and diluted earnings per common share totaled $0.84, compared to $55.9 million and $0.94 in the third quarter of 2023, and $39.5 million and $0.68 in the second quarter of 2024.   Excluding the loss from repositioning of the available for sale securities portfolio, adjusted net income was $55.6 million or $0.95 per share for ...

MUNCIE, Ind., Oct. 03, 2024 (GLOBE NEWSWIRE) -- First Merchants Corporation (Nasdaq:FRME) will report third quarter 2024 financial results on October 24, 2024. The Corporation will host a third quarter 2024 earnings conference call and webcast at 11:30 a.m. (ET) on Thursday, October 24, 2024. To access via phone, participants will need to register using the following link where they will be provided a phone number and access code: (https://register.vevent.com/register/BI34430e309ed545808c7c8195f36e86b6) In ...

First Merchants (FRME) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. The power of a cha ...

First Merchants (FRME) closed the last trading session at $35.82, gaining 10.2% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $46.60 indicates a 30.1% upside potential. The mean estimate comprises five short-term price targets with a standard deviation of $2.07. While the lowest estimate of $45 indicates a 25.6% increase from the current price level, the most optimistic analyst e ...

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us. You can see the current list of Zacks #1 Rank Stocks here >>> Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the u ...

First Merchants (FRME) came out with quarterly earnings of $0.68 per share, missing the Zacks Consensus Estimate of $0.78 per share. This compares to earnings of $1.02 per share a year ago. These figures are adjusted for non-recurring items. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. While First Merchants has underperformed the market so far this year, t ...

Financial Performance - Net income available to common stockholders for Q2 2024 was $39.5 million, down from $60.4 million in Q2 2023, with diluted earnings per share at $0.68 compared to $1.02 in the same period last year[2]. - The net income for Q2 2024 was $39,925,000, down from $60,862,000 in Q2 2023, representing a decrease of 34.4%[23]. - Basic net income available to common stockholders was $0.68 per share in Q2 2024, compared to $1.02 per share in Q2 2023, a decline of 33.3%[23]. - Adjusted Net Income Available to Common Stockholders for Q2 2024 was $39,456,000, compared to $50,105,000 in Q1 2024, reflecting a decrease of 21.1%[28]. - Return on Average Assets for Q2 2024 was 0.87%, a decrease from 1.34% in Q2 2023[20]. - Return on Tangible Common Equity (Non-GAAP) for Q2 2024 was 11.29%, down from 13.21% in Q1 2024, a decline of 1.92 percentage points[30]. Asset and Liability Management - Total assets reached $18.3 billion, with total loans at $12.7 billion, reflecting a growth of $374.4 million, or 3.0 percent, over the past twelve months[3]. - Total assets as of June 30, 2024, were $18,303,423, a slight decrease of 0.1% from $18,317,803 on March 31, 2024[22]. - Total liabilities remained stable at $16,090,898 as of June 30, 2024, compared to $16,093,000 on March 31, 2024[22]. - Total liabilities increased to $16,128,798 thousand as of June 30, 2024, compared to $16,030,772 thousand in the previous year, a growth of 0.61%[27]. Deposits and Loans - Total deposits decreased by $315.5 million, or 8.5 percent annualized on a linked quarter basis, totaling $14.6 billion at quarter-end[4]. - Total deposits decreased to $14,569,070,000 in Q2 2024 from $14,581,155,000 in Q2 2023, a slight decline of 0.1%[25]. - Total loans reached $12,639,650,000 as of June 30, 2024, compared to $12,270,233,000 a year earlier, marking an increase of 3.0%[24]. - Net loans increased to $12,450,113 as of June 30, 2024, up 1.5% from $12,260,901 on March 31, 2024[22]. Income and Expenses - Noninterest income increased to $31.3 million, a rise of $4.7 million, or 17.6 percent, compared to the first quarter of 2024[8]. - Noninterest expense totaled $91.4 million, a decline of $5.5 million from the first quarter of 2024, driven by lower salaries and employee benefits[9]. - The efficiency ratio for the quarter was 53.84 percent, better than the target of less than 55 percent[5]. - The Efficiency Ratio for Q2 2024 was 53.84%, compared to 52.21% in Q2 2023, indicating a decline in operational efficiency[20]. Credit Quality - The Allowance for Credit Losses – Loans (ACL) was $189.5 million, or 1.50 percent of total loans, with loan charge-offs totaling $39.6 million for the quarter[6]. - Non-performing assets to total assets were 0.36 percent, a slight decrease from 0.37 percent in the prior quarter[6]. - Net Charge-offs for Q2 2024 were $39,644,000, significantly higher than $1,905,000 in Q2 2023[20]. - The allowance for credit losses on loans was $189,537,000 as of June 30, 2024, down from $221,147,000 in Q2 2023, indicating improved credit quality[24]. Interest Income and Margin - Total Interest Income for Q2 2024 increased to $236,381,000, up from $221,365,000 in Q2 2023, representing a growth of 6.5%[19]. - Net Interest Income after Provision for Credit Losses decreased to $104,071,000 in Q2 2024 from $137,835,000 in Q2 2023, a decline of 24.5%[19]. - The net interest margin (FTE) for the three months ended June 30, 2024, was 3.16%, compared to 3.39% for the same period in 2023, indicating a decline of 6.79%[26]. - Net Interest Margin (GAAP) for Q2 2024 was 3.02%, compared to 2.97% in Q1 2024, showing an improvement of 0.05 percentage points[29].