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First Merchants (FRME) - 2024 Q2 - Quarterly Results
FRMEFirst Merchants (FRME)2024-07-25 12:07

Financial Performance - Net income available to common stockholders for Q2 2024 was 39.5million,downfrom39.5 million, down from 60.4 million in Q2 2023, with diluted earnings per share at 0.68comparedto0.68 compared to 1.02 in the same period last year[2]. - The net income for Q2 2024 was 39,925,000,downfrom39,925,000, down from 60,862,000 in Q2 2023, representing a decrease of 34.4%[23]. - Basic net income available to common stockholders was 0.68pershareinQ22024,comparedto0.68 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,comparedto39,456,000, 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 18.3billion,withtotalloansat18.3 billion, with total loans at 12.7 billion, reflecting a growth of 374.4million,or3.0percent,overthepasttwelvemonths[3].−TotalassetsasofJune30,2024,were374.4 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 18,317,803onMarch31,2024[22].−Totalliabilitiesremainedstableat18,317,803 on March 31, 2024[22]. - Total liabilities remained stable at 16,090,898 as of June 30, 2024, compared to 16,093,000onMarch31,2024[22].−Totalliabilitiesincreasedto16,093,000 on March 31, 2024[22]. - Total liabilities increased to 16,128,798 thousand as of June 30, 2024, compared to 16,030,772thousandinthepreviousyear,agrowthof0.6116,030,772 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 14.6billionatquarter−end[4].−Totaldepositsdecreasedto14.6 billion at quarter-end[4]. - Total deposits decreased to 14,569,070,000 in Q2 2024 from 14,581,155,000inQ22023,aslightdeclineof0.114,581,155,000 in Q2 2023, a slight decline of 0.1%[25]. - Total loans reached 12,639,650,000 as of June 30, 2024, compared to 12,270,233,000ayearearlier,markinganincreaseof3.012,270,233,000 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 12,260,901onMarch31,2024[22].IncomeandExpenses−Noninterestincomeincreasedto12,260,901 on March 31, 2024[22]. Income and Expenses - Noninterest income increased to 31.3 million, a rise of 4.7million,or17.6percent,comparedtothefirstquarterof2024[8].−Noninterestexpensetotaled4.7 million, or 17.6 percent, compared to the first quarter of 2024[8]. - Noninterest expense totaled 91.4 million, a decline of 5.5millionfromthefirstquarterof2024,drivenbylowersalariesandemployeebenefits[9].−Theefficiencyratioforthequarterwas53.84percent,betterthanthetargetoflessthan55percent[5].−TheEfficiencyRatioforQ22024was53.845.5 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 39.6millionforthequarter[6].−Non−performingassetstototalassetswere0.36percent,aslightdecreasefrom0.37percentinthepriorquarter[6].−NetCharge−offsforQ22024were39.6 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 1,905,000inQ22023[20].−Theallowanceforcreditlossesonloanswas1,905,000 in Q2 2023[20]. - The allowance for credit losses on loans was 189,537,000 as of June 30, 2024, down from 221,147,000inQ22023,indicatingimprovedcreditquality[24].InterestIncomeandMargin−TotalInterestIncomeforQ22024increasedto221,147,000 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 221,365,000inQ22023,representingagrowthof6.5221,365,000 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].