In This Article:
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Total Assets: $18.3 billion.
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Total Loans: $12.7 billion.
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Total Deposits: $14.4 billion.
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Assets Under Advisement: $5.6 billion.
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Earnings Per Share (EPS): $0.84, or $0.95 adjusted for a $9.1 million loss.
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Tangible Common Equity Ratio: 8.76%.
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Tangible Book Value Per Share: $26.64, increased by 19% over the last 12 months.
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Net Interest Margin: Improved by 7 basis points quarter-over-quarter.
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Loan Growth: Total loans grew 0.5% annualized during the quarter.
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Commercial & Industrial (C&I) Loan Growth: 1% for the quarter, 4.5% annualized year-to-date.
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Investment Real Estate Portfolio Decline: Over 11% throughout 2024.
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Deposit Growth: Total deposits grew at a 2.3% annualized rate for the quarter.
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Net Interest Income: Increased by $2.5 million sequentially.
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Noninterest Income: $24.9 million, or $34 million adjusted for a $9.1 million loss.
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Allowance for Credit Losses: $187.8 million with a coverage ratio of 1.48%.
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Total Cost of Deposits: 2.69%, relatively flat with a 3 basis point increase.
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Net Charge Offs: $6.7 million for the quarter.
Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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First Merchants Corp (NASDAQ:FRME) reported strong third-quarter results with a focus on building momentum through strategic initiatives, including the sale of noncore Illinois branches and technology upgrades.
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The company is well-positioned for organic growth in 2025, with a strong pipeline for commercial and industrial (C&I) loans and investment real estate projects.
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Net interest margin improved by seven basis points quarter-over-quarter, driven by effective deposit pricing and loan yield management.
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The tangible book value per share increased by 19% over the last 12 months, reflecting strong earnings and asset recapture.
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First Merchants Corp (NASDAQ:FRME) completed four major technology initiatives, enhancing digital channels and improving client experiences across consumer, commercial, and private wealth segments.
Negative Points
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The company recorded a $9.1 million loss from the sale of securities in the third quarter, impacting noninterest income.
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Loan growth was choppy, with total loans growing only 0.5% on an annualized basis during the quarter.
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The investment real estate portfolio declined by over 11% throughout 2024, with a continued slowdown in the third quarter.
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Net charge-offs for the quarter were $6.7 million, primarily due to a $5.6 million charge-off related to a trucking company loss.
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The allowance for credit losses remains high, with a coverage ratio of 1.48%, indicating ongoing credit risk concerns.