First Merchants (FRME) - 2024 Q3 - Quarterly Results

Financial Performance - Net income available to common stockholders for Q3 2024 was $48.7 million, down from$ 55.9 million in Q3 2023, with diluted earnings per share at $0.84 compared to$ 0.94 in the prior year[1][2] - Net Income for the quarter was $49,187, up from$ 56,366 in September 2023, a decrease of 12.7%[16] - Basic Net Income Available to Common Stockholders was $0.84 per share in Q3 2024, compared to$ 0.95 per share in Q3 2023, a decline of 11.6%[12] - Adjusted net income available to common stockholders for the three months ended September 30, 2024, was $55,613, an increase of 40.83% from$ 39,493 in the previous quarter[24] - Net Income Available to Common Stockholders (GAAP) rose to $48,719,000 for the three months ended September 30, 2024, from$ 42,010,000 for the three months ended December 31, 2023[25] Loans and Deposits - Total loans increased by $15.5 million, or 0.5% annualized, on a linked quarter basis, and grew by$ 385.1 million, or 3.1% year-over-year[1][3] - Total loans rose to $12,680,166,000 in Q3 2024, compared to$ 12,287,632,000 in Q3 2023, an increase of 3.2%[13] - Total deposits reached $14.4 billion, with a linked quarter increase of$ 83.7 million, or 2.3% annualized, after normalizing for $287.7 million of deposits reclassified to held for sale[1][4] - Total deposits decreased to$ 14,365,100 million in September 2024 from $14,646,576 million in September 2023, a decline of 1.9%[15] - Net loans increased slightly to$ 12,458,980 million in September 2024 from $12,065,640 million in September 2023, reflecting a growth of 3.3%[15] Asset Quality - Non-performing assets to total assets improved to 35 basis points, down from 36 basis points in the previous quarter[1][5] - Nonaccrual loans increased to$ 62,478 million in 2024 from $53,580 million in 2023, reflecting a rise of 16.5%[14] - Nonperforming assets (NPA) totaled$ 67,364 million in 2024, up from $58,411 million in 2023, indicating a year-over-year increase of 15.5%[14] - The ratio of NPAs to actual assets was 0.37% in 2024, compared to 0.33% in 2023, indicating a slight deterioration in asset quality[14] - The net charge-offs as a percentage of average loans (annualized) decreased to 0.21% in 2024 from 0.66% in 2023, showing improved loan performance[14] Interest Income and Expenses - Net interest income for the quarter was$ 131.1 million, a 2.0% increase from the prior quarter, but a 1.7% decrease compared to Q3 2023[1][6] - Total Interest Income for Q3 2024 was $241,083,000, an increase from$ 229,133,000 in Q3 2023, representing a growth of 4%[12] - Net Interest Income after Provision for Credit Losses decreased to $126,110,000 in Q3 2024 from$ 131,383,000 in Q3 2023, a decline of 4%[12] - The net interest margin (FTE) was 3.23% for the current period, slightly down from 3.29% in the previous year[19] - Interest expense as a percentage of average earning assets increased to 2.59% from 2.26% year-over-year[19] Capital Ratios - The total risk-based capital ratio was 13.18%, with a Common Equity Tier 1 Capital Ratio of 11.25%[1][7] - Stockholders' equity rose to $2,302,373 million in September 2024, up from$ 2,092,644 million in September 2023, an increase of 10.0%[15] - Total Average Stockholders' Equity (GAAP) increased to $2,251,547,000 for the three months ended September 30, 2024, from$ 2,130,993,000 for the three months ended December 31, 2023[25] Operational Efficiency - The efficiency ratio for the quarter was 53.76%, indicating operational efficiency[1] - The Efficiency Ratio was reported at 53.76%, slightly improved from 53.91% in the same quarter last year[16] Strategic Initiatives - The Corporation announced the sale of five non-core Illinois branches, expected to close in Q4 2024, as part of a strategic market repositioning[1][3]