First Merchants (FRME) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter 2024 net income available to common stockholders was $63.9 million, up from $42.0 million in Q4 2023, with diluted earnings per share increasing to $1.10 from $0.71[1][2] - Adjusted net income for Q4 2024 was $58.1 million, or $1.00 per share, compared to $53.4 million, or $0.90 per share in Q4 2023[2] - Net income for Q4 2024 was $64,349,000, up from $42,479,000 in Q4 2023, while net income for the year decreased to $201,402,000 from $223,786,000[20] - The company reported net charge-offs of $771,000 for Q4 2024, significantly lower than $3,148,000 in Q4 2023, with total charge-offs for the year at $49,377,000 compared to $25,643,000[21] - Adjusted Net Income Available to Common Stockholders for the twelve months ended December 31, 2024, was $203,315,000, down from $236,707,000 in 2023, a decrease of approximately 14.1%[29] Asset and Loan Growth - Total loans grew by $185.6 million, or 5.9% annualized, on a linked quarter basis, and by $368.1 million, or 2.9% year-over-year[3] - Total loans as of December 31, 2024, amounted to $12,757.7 million, with a net interest income of $208.9 million, resulting in an interest rate of 6.55%[27] - Commercial and industrial loans increased to $4,114,292,000 in Q4 2024, up from $4,041,217,000 in Q3 2024, a growth of 1.9%[25] - Total Loans increased to $12,634,324,000 for the twelve months ended December 31, 2024, up from $12,297,974,000, representing a growth of about 2.7%[28] Deposit Trends - Total deposits were $14.5 billion, decreasing by $299.8 million, or 2.0%, over the past twelve months, primarily due to the sale of Illinois branches[5] - Total deposits as of December 31, 2024, reached $14,521.6 million, an increase from $14,365.1 million on September 30, 2024, representing a growth of 1.1%[26] - Demand deposits increased to $7,980.1 million from $7,678.5 million, reflecting a growth of 3.9% quarter-over-quarter[26] - The company completed the sale of $267.4 million of deposits associated with the Illinois branch on December 6, 2024[26] Income and Expense Analysis - Noninterest income for the quarter totaled $42.7 million, an increase of $17.9 million compared to Q3 2024 and $16.3 million compared to Q4 2023[8] - Noninterest income for Q4 2024 increased to $42,742,000 from $26,444,000 in Q4 2023, with total noninterest income for the year rising to $125,580,000 from $105,602,000[20] - Total Noninterest Expenses rose to $96,289,000 in Q4 2024, compared to $94,629,000 in Q3 2024, reflecting a 1.8% increase[24] - Adjusted Non Interest Expense (Non-GAAP) for Q4 2024 was $94,291, slightly up from $91,915 in Q3 2024, showing a 2.5% increase[32] Capital and Efficiency Ratios - The Common Equity Tier 1 Capital Ratio stood at 11.43%, reflecting a strong capital position[2][10] - The efficiency ratio improved to 48.48% in Q4 2024 from 63.26% in Q4 2023, reflecting better cost management[21] - Efficiency Ratio (Non-GAAP) decreased to 48.48% in Q4 2024 from 53.76% in Q3 2024, indicating improved operational efficiency[32] - Total Average Stockholders' Equity (GAAP) increased to $2,312,270 in Q4 2024 from $2,251,547 in Q3 2024, a growth of 2.7%[31] Interest Income and Margin - Total interest income for Q4 2024 was $234,642,000, a slight decrease from $236,990,000 in Q4 2023, while total interest income for the year increased to $948,006,000 from $893,886,000[20] - Net interest income after provision for credit losses for Q4 2024 was $130,170,000, compared to $128,563,000 in Q4 2023, with a yearly total of $485,414,000 down from $541,900,000[20] - The net interest margin (FTE) for the three months ended December 31, 2024, was 3.28%, slightly up from 3.16% in the previous year[27] - The Net Interest Margin (FTE) for the twelve months ended December 31, 2024, was 3.19%, compared to 3.35% for the previous year, indicating a decline of 16 basis points[30]