First Merchants (US:FRME)2025-10-22 20:13Financial Performance - Third quarter 2025 net income available to common stockholders was $56.3 million, up from $48.7 million in the same period in 2024, with diluted earnings per share increasing to $0.98 from $0.84[3] - Noninterest income for the quarter totaled $32.5 million, an increase of $1.2 million, or 3.8%, compared to the second quarter of 2025, and an increase of $7.6 million, or 30.6%, from the third quarter of 2024[10] - Net interest income was $133.7 million for the quarter, reflecting a $0.7 million increase, or 0.5%, compared to the prior quarter[9] - Net Income for the three months ended September 30, 2025, was $56,765,000, an increase of 15.5% compared to $49,187,000 in the same period of 2024[21] - Basic Net Income Available to Common Stockholders for the three months ended September 30, 2025, was $0.98 per share, up from $0.84 per share in 2024, marking a growth of 16.7%[21] - Adjusted Net Income Available to Common Stockholders for Q3 2025 was $56,986, compared to $54,875 in Q3 2024, reflecting a year-over-year increase of 3.85%[30] - Net Income Available to Common Stockholders (GAAP) for the nine months ended September 30, 2025, was $167,530, up from $135,647 in the same period of 2024, representing a growth of 23.5%[30] Asset and Loan Growth - Total loans grew by $288.8 million, or 8.7% annualized, on a linked quarter basis, and increased by $926.9 million, or 7.3%, over the past twelve months[4] - Net loans rose to $13,396,706 thousand, up from $12,612,458 thousand, reflecting a year-over-year increase of 6.21%[20] - Total loans reached $13.591 billion as of September 30, 2025, up from $13.297 billion in June 2025, representing a growth of 2.2%[26] - Total loans increased to $13,402,379,000 for the three months ended September 30, 2025, up from $12,680,166,000 in 2024, representing a growth of 5.7%[28] Deposit Growth - Total deposits increased by $72.4 million, or 2.0% annualized, on a linked quarter basis, and grew by $504.9 million, or 3.5%, over the past twelve months[7] - Total deposits reached $14,869,979 thousand, compared to $14,365,100 thousand, marking an increase of 3.52%[20] - Total deposits as of September 30, 2025, were $14,907,861,000, an increase from $14,702,454,000 in 2024, representing a growth of 1.4%[22] - Total deposits increased to $14.870 billion in Q3 2025, compared to $14.798 billion in Q2 2025, reflecting a growth of 0.5%[27] Capital and Financial Ratios - Common Equity Tier 1 Capital Ratio was 11.34%, indicating a robust capital position[4] - The total risk-based capital ratio equaled 13.04%, reflecting the Corporation's strong financial health[12] - The efficiency ratio for the quarter was 55.09%, or 54.56% excluding non-core charges[4] - Return on Average Assets for the three months ended September 30, 2025, improved to 1.22%, compared to 1.07% in the same period of 2024[22] - Total Stockholders' Equity as of September 30, 2025, was $2,367,971,000, an increase from $2,251,547,000 in 2024, reflecting a growth of 5.2%[22] Credit Quality - The Corporation's Allowance for Credit Losses – Loans totaled $194.5 million, or 1.43% of total loans, with non-performing assets to total assets at 0.36%[8] - Nonaccrual loans decreased to $65,740 thousand from $67,358 thousand in the previous quarter, a decline of 2.4%[23] - Nonperforming assets (NPA) totaled $67,010 thousand, down from $67,535 thousand, reflecting a decrease of 0.8%[23] - The allowance for credit losses on loans remained stable at $194,468 thousand, compared to $195,316 thousand in the previous quarter[23] Efficiency and Expenses - The efficiency ratio for the three months ended September 30, 2025, was 55.09%, compared to 53.76% in the same period of 2024, indicating a slight decline in efficiency[22] - Noninterest Expense (GAAP) for the three months ended September 30, 2025, was $96,561 thousand, compared to $93,598 thousand for the previous quarter, reflecting an increase of 2.1%[33] - Adjusted Noninterest Expense (Non-GAAP) for the nine months ended September 30, 2025, was $277,781 thousand, slightly up from $275,628 thousand in the same period of 2024, indicating a year-over-year increase of 0.8%[33] Acquisition - The Corporation announced the acquisition of First Savings Financial Group, valued at approximately $241.3 million, expected to close in the first quarter of 2026, adding $2.4 billion in assets[3]