Here's What Key Metrics Tell Us About First Merchants (FRME) Q1 Earnings

Core Insights - First Merchants (FRME) reported revenue of $160.32 million for the quarter ended March 2025, reflecting a year-over-year increase of 4.3% but a revenue surprise of -4.52% compared to the Zacks Consensus Estimate of $167.9 million [1] - The earnings per share (EPS) for the quarter was $0.94, up from $0.85 in the same quarter last year, resulting in an EPS surprise of +3.30% against the consensus estimate of $0.91 [1] Company Performance Metrics - The efficiency ratio was reported at 54.5%, better than the average estimate of 56% based on three analysts [4] - The net interest margin (FTE) stood at 3.2%, matching the average estimate of 3.2% from three analysts [4] - Net charge-offs as a percentage of average loans (annualized) were 0.2%, consistent with the average estimate from two analysts [4] - The average balance of total earning assets was $16.96 billion, slightly below the average estimate of $17.04 billion from two analysts [4] - Total non-interest income was $30.05 million, slightly below the average estimate of $30.12 million from three analysts [4] - Net gains and fees on sales of loans were $5.02 million, exceeding the average estimate of $4.57 million from three analysts [4] - Other income was reported at $0.79 million, significantly lower than the average estimate of $1.85 million from two analysts [4] - Net interest income was $130.27 million, slightly above the average estimate of $130.15 million from two analysts [4] - Other customer fees were $0.42 million, slightly below the average estimate of $0.45 million from two analysts [4] - Net interest income (FTE) was $136.40 million, below the average estimate of $138.54 million from two analysts [4] - Fiduciary and wealth management fees were $8.64 million, below the average estimate of $8.83 million from two analysts [4] - Service charges on deposit accounts were $8.07 million, slightly above the average estimate of $8.05 million from two analysts [4] Stock Performance - Over the past month, shares of First Merchants have returned -10.1%, compared to a -5.1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]