First Merchants (US:FRME)2024-07-25 12:07Financial 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].