First Merchants Corporation Announces Second Quarter 2024 Earnings Per Share

Core Insights - First Merchants Corporation reported a net income of $39.5 million for Q2 2024, a decrease from $60.4 million in Q2 2023 and $47.5 million in Q1 2024, with diluted earnings per share at $0.68 compared to $1.02 in Q2 2023 [1][22] - The company maintains a strong capital position with a Common Equity Tier 1 Capital Ratio of 11.02 percent and a total risk-based capital ratio of 12.95 percent [5][22] - The net interest margin improved to 3.16 percent, up from 3.10 percent in the previous quarter, while total loans increased by $191.2 million, or 6.1 percent annualized, compared to the prior quarter [1][24] - Total deposits decreased by $315.5 million, or 8.5 percent annualized, on a linked quarter basis, with noninterest-bearing deposits remaining stable [3][22] Financial Performance - Total assets reached $18.3 billion, with total loans amounting to $12.7 billion, reflecting a growth of $374.4 million, or 3.0 percent, over the past twelve months [2][22] - Noninterest income for the quarter was $31.3 million, an increase of $4.7 million, or 17.6 percent, compared to Q1 2024, driven by higher gains on loan sales and private wealth fees [4][22] - Noninterest expenses totaled $91.4 million, a decline of $5.5 million from Q1 2024, attributed to lower salaries and employee benefits [25][22] Asset Quality - The Allowance for Credit Losses on loans was $189.5 million, representing 1.50 percent of total loans, with net charge-offs for the quarter totaling $39.6 million [24][22] - Nonperforming assets to total assets were 0.36 percent, a slight decrease from 0.37 percent in the prior quarter [24][22] Efficiency Metrics - The efficiency ratio for the quarter was 53.84 percent, better than the company's target of less than 55 percent [22][25] - Return on average assets was 0.87 percent, while return on average stockholders' equity was 7.16 percent [22][24]