merce Bancshares(CBSH)2025-04-16 13:23Financial Performance - Earnings per share for Q1 2025 was $0.98, an increase of 19.5% from $0.82 in Q1 2024[2] - Net income for Q1 2025 was $131.6 million, up from $112.7 million in Q1 2024, but down from $136.1 million in Q4 2024[2] - The return on average assets was 1.69%, while the return on average equity was 15.82%[7] - For Q1 2025, net income was $131.6 million, down from $136.1 million in Q4 2024 but up from $112.7 million in Q1 2024[24] - The effective tax rate for the company was 21.9% in the current quarter, consistent with the same quarter last year[43] Income and Revenue - Net interest income reached a record $269.1 million, reflecting a $2.5 million increase from the prior quarter and a 7.7% increase year-over-year[5] - Non-interest income totaled $158.9 million, a 6.8% increase compared to Q1 2024, with trust fees growing 10.7% to $57 million[5] - Total non-interest income for Q1 2025 was $158.9 million, an increase of $10.1 million or 6.8% year-over-year[34] - Trust fees increased by $5.5 million or 10.7% compared to the same period last year, driven by higher private client fees[36] Assets and Liabilities - Total assets as of March 31, 2025, were $32.4 billion, an increase of $368.3 million, or 1.2%, from the prior quarter[7] - Total assets increased to $32,364,964 thousand as of March 31, 2025, up from $31,996,627 thousand at December 31, 2024, representing a growth of 4.3%[16] - The total liabilities increased to $28,866,562 thousand from $28,664,152 thousand, reflecting a growth of 0.7%[16] Loans and Deposits - Average loan balances increased by 1.0% to $17.2 billion compared to the prior quarter[7] - Total loans reached $17,379,421 thousand, a slight increase from $17,220,103 thousand in the previous quarter, reflecting a growth of 0.9%[16] - Net loans amounted to $17,212,390 thousand, up from $17,057,361 thousand, indicating a quarter-over-quarter increase of 0.9%[16] - Total deposits rose to $25,841,797 thousand, compared to $25,293,644 thousand at the end of the previous quarter, marking a growth of 2.2%[16] - Total average deposits decreased by $83.7 million, with significant declines in demand deposits and certificates of deposit[27] Expenses and Efficiency - Non-interest expense decreased by 3.0% to $238.4 million compared to Q1 2024[5] - Non-interest expense decreased to $238.4 million from $245.7 million year-over-year, mainly due to the absence of litigation settlement expenses[39] - The efficiency ratio improved to 55.6%, down from 61.67% in Q1 2024[9] Credit Quality - The allowance for credit losses on loans increased to $167.0 million, with a ratio of 0.96% to total loans[7] - The allowance for credit losses on loans was $167,031 thousand, slightly higher than $162,742 thousand in the previous quarter, indicating a proactive approach to risk management[16] - The provision for credit losses on loans was $15.1 million, up from $12.6 million in the previous quarter[22] - Non-accrual loans to total loans ratio increased to 0.13% from 0.11% in the previous quarter[22] - Net loan charge-offs for Q1 2025 were $10.8 million, with an annualized charge-off ratio of 0.25%[44] Capital and Dividends - Stockholders' equity increased to $3,498,402 thousand, up from $3,332,475 thousand, reflecting a growth of 5.0%[16] - The company maintained a stable capital surplus of $3,381,960 thousand, slightly down from $3,395,645 thousand in the previous quarter[16] - The company paid a cash dividend of $0.275 per common share, reflecting a 7.0% increase year-over-year[49] Securities and Investments - Investment securities totaled $9,601,068 thousand, an increase from $9,462,380 thousand, representing a growth of 1.5%[16] - Total average available for sale debt securities rose by $66.1 million to $9.2 billion, primarily due to higher U.S. government and federal agency obligations[26] - The unrealized loss on available for sale debt securities decreased by $157.7 million to $832.9 million at the end of the quarter[26] - Net securities losses amounted to $7.6 million, a significant decline from gains of $977 thousand in the prior quarter[38] Interest Rates - The net yield on interest earning assets increased to 3.56%, up from 3.49% in the prior quarter[29] - Interest expense decreased by $7.5 million to $1.89% from 2.04% in the prior quarter, primarily due to lower average rates on deposits[33]