First Merchants (US:FRME) Globenewswireยท2025-07-23 20:05Core Insights - First Merchants Corporation reported a strong financial performance in Q2 2025, with net income available to common stockholders reaching $56.4 million, up from $39.5 million in Q2 2024, and diluted earnings per share increasing to $0.98 from $0.68 [2][10]. Financial Performance - Total assets as of June 30, 2025, were $18.6 billion, with total loans amounting to $13.3 billion, reflecting a year-over-year growth of $653.6 million, or 5.2% [3][20]. - Total deposits increased to $14.8 billion, marking a $228.5 million, or 1.6% increase over the past year, and a $335.6 million, or 9.3% annualized increase on a linked quarter basis [5][10]. - Net interest income for the quarter was $133.0 million, up $2.7 million, or 2.1% from the previous quarter, and up $4.4 million, or 3.5% from Q2 2024 [7][10]. - Noninterest income totaled $31.3 million, stable compared to Q2 2024, but increased by $1.3 million from Q1 2025, driven by higher gains on loan sales and treasury management fees [8][10]. Asset Quality - The allowance for credit losses on loans was $195.3 million, representing 1.47% of total loans, with net charge-offs totaling $2.3 million for the quarter [6][19]. - Non-performing assets to total assets decreased to 0.36% from 0.47% in the previous quarter, indicating improved asset quality [6][10]. Capital Position - The Corporation maintained a robust capital position, with a common equity tier 1 capital ratio of 11.35% and a total risk-based capital ratio of 13.06% [9][10]. - Year-to-date, the Corporation repurchased 818,480 shares for a total of $31.7 million, including 582,486 shares for $22.1 million in Q2 2025 [10]. Efficiency Metrics - The efficiency ratio for the quarter was reported at 53.99%, reflecting effective cost management despite a slight increase in noninterest expenses to $93.6 million [9][10].