First Merchants Corporation Announces Fourth Quarter 2024 Earnings Per Share

Core Insights - First Merchants Corporation reported a strong fourth quarter for 2024, with significant increases in net income, core earnings, net interest margin (NIM), and return on assets (ROA) [2][3]. Financial Performance - The net income available to common stockholders for Q4 2024 was $63.9 million, up from $42.0 million in Q4 2023, resulting in diluted earnings per share of $1.10 compared to $0.71 in the previous year [3][11]. - Adjusted net income, excluding non-core items, was $58.1 million or $1.00 per share, compared to $53.4 million or $0.90 in Q4 2023 [3][11]. - Net interest income for the quarter was $134.4 million, reflecting a 2.5% increase from the prior quarter and a 3.3% increase from Q4 2023 [9][11]. - Noninterest income totaled $42.7 million, a significant increase of $17.9 million from Q3 2024 and $16.3 million from Q4 2023 [10][11]. Asset and Loan Growth - Total assets at the end of Q4 2024 were $18.3 billion, with total loans amounting to $12.9 billion, representing a year-over-year growth of $368.1 million or 2.9% [5][11]. - Loans grew by $185.6 million or 5.9% annualized on a linked quarter basis, primarily driven by commercial loans [5][11]. Deposit Trends - Total deposits were $14.5 billion, down by $299.8 million or 2.0% year-over-year, largely due to the sale of Illinois branches [7][11]. - Excluding the impact of branch sales, deposits declined by $32.4 million in 2024, but increased by $156.5 million or 4.4% annualized on a linked quarter basis [7][11]. Credit Quality - The allowance for credit losses on loans was $192.8 million, or 1.50% of total loans, with non-performing assets to total assets at 0.43%, an increase from 0.35% in the prior quarter [8][22]. - Net charge-offs for the quarter were $0.8 million, with a provision for loans of $5.7 million recorded [8][11]. Capital Position - The Corporation maintained a strong capital position with a Common Equity Tier 1 Capital Ratio of 11.43% and a Tangible Common Equity to Tangible Assets Ratio of 8.81% [11][12].