MUNCIE, Ind., April 24, 2025 (GLOBE NEWSWIRE) -- First Merchants Corporation (NASDAQ - FRME)
First Quarter 2025 Highlights:
- Net income available to common stockholders was $54.9 million and diluted earnings per common share totaled $0.94 compared to adjusted net income and diluted earnings per common share1 of $50.1 million and $0.85 in the first quarter of 2024. Adjusted net income and diluted earnings per common share1 in the fourth quarter of 2024 were $58.1 million and $1.00, respectively.
- Robust capital position with Common Equity Tier 1 Capital Ratio of 11.50%.
- Repurchased 246,751 shares totaling $10 million year-to-date; Redeemed $30 million of sub debt.
- Total loans grew $154.9 million, or 4.8% annualized, on a linked quarter basis, and $547.2 million, or 4.4%, during the last twelve months.
- Total deposits declined $59.6 million, or 1.6% annualized, on a linked quarter basis, and declined $422.6 million, or 2.8%, during the last twelve months primarily due to the sale of five Illinois branches with $267.4 million in deposits to Old Second National Bank on December 6, 2024.
- Nonperforming assets to total assets were 47 basis points compared to 43 basis points on a linked quarter basis.
- The efficiency ratio totaled 54.54% for the quarter.
First Quarter Financial Results:
First Merchants Corporation (the "Corporation”) reported first quarter 2025 net income available to common stockholders of $54.9 million compared to adjusted net income available to common stockholders1 of $50.1 million during the same period in 2024. Diluted earnings per common share for the period totaled $0.94 compared to the first quarter of 2024 adjusted diluted earnings per common share1 of $0.85 per share.
Total assets equaled $18.4 billion as of quarter-end and loans totaled $13.0 billion. During the past twelve months, total loans grew by $547.2 million, or 4.4%. On a linked quarter basis, loans grew $154.9 million, or 4.8% annualized.
Investment securities, totaling $3.4 billion, decreased $356.5 million, or 9.4%, during the last twelve months and decreased $33.6 million, or 3.9% annualized on a linked quarter basis. The decline in the last twelve months reflected sales of available for sale securities in 2024 totaling $268.5 million.
Total deposits equaled $14.5 billion as of quarter-end and decreased by $422.6 million, or 2.8%, over the past twelve months. The decline reflected the sale of the Illinois branches during the prior quarter which included $267.4 million in deposits. Total deposits decreased $59.6 million, or 1.6% annualized on a linked quarter basis. The loan to deposit ratio increased to 90.1% at period end from 88.6% in the prior quarter.
The Corporation's Allowance for Credit Losses - Loans (ACL) totaled $192.0 million as of quarter-end, or 1.47% of total loans, a decrease of $0.7 million from prior quarter. Net charge-offs totaled $4.9 million and provision for loans of $4.2 million was recorded during the quarter. Reserves for unfunded commitments totaling $18.0 million remain unchanged from the previous quarter. Non-performing assets to total assets were 0.47% for the first quarter of 2025, an increase of four basis points compared to 0.43% in the prior quarter.
Net interest income totaled $130.3 million for the quarter, a decrease of $4.1 million, or 3.1%, compared to prior quarter and increased $3.2 million, or 2.5%, compared to the first quarter of 2024. Fully taxable equivalent net interest margin was 3.22%, a decrease of six basis points compared to the fourth quarter of 2024 and an increase of 12 basis points compared to the first quarter of 2024. The lower day count in the quarter caused a decline of five basis points in net interest margin from the prior quarter.
Noninterest income totaled $30.0 million for the quarter, a decrease of $12.7 million, compared to the fourth quarter of 2024 and an increase of $3.4 million compared to the first quarter of 2024. Customer-related fees declined by $2.3 million from the previous quarter due to lower derivative hedge fees, gains on sales of mortgage loans and card payment fees. Non-customer-related fees declined $10.4 million from the prior quarter primarily due to the gain on the Illinois branch sale, partially offset by realized losses on the sales of securities recorded in the prior quarter.
Noninterest expense totaled $92.9 million for the quarter, a decrease of $3.4 million from the fourth quarter of 2024 and a decrease of $4.0 million from the first quarter of 2024. The decrease from the fourth quarter of 2024 was due primarily to a decline in marketing expenses, and lower professional fees and employee incentives.
The Corporation's total risk-based capital ratio totaled 13.22%, common equity tier 1 capital ratio totaled 11.50%, and the tangible common equity ratio totaled 8.90%. These ratios continue to demonstrate the Corporation's strong capital position.
1 See "Non-GAAP Financial Information” for reconciliation
CONFERENCE CALL
First Merchants Corporation will conduct a fourth quarter earnings conference call and web cast at 11:30 a.m. (ET) on Thursday, April 24, 2025.
To access via phone, participants will need to register using the following link where they will be provided a phone number and access code: (https://register-conf.media-server.com/register/BI4ae3a07cb07a47258d30e4f3dba2448b)
To view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/uqvoojku) during the time of the call. A replay of the webcast will be available until April 24, 2026.
Detailed financial results are reported on the attached pages.
About First Merchants Corporation
First Merchants Corporation is a financial holding company headquartered in Muncie, Indiana. The Corporation has one full-service bank charter, First Merchants Bank. The Bank also operates as First Merchants Private Wealth Advisors (as a division of First Merchants Bank).
First Merchants Corporation's common stock is traded on the NASDAQ Global Select Market System under the symbol FRME. Quotations are carried in daily newspapers and can be found on the company's Internet web page (http://www.firstmerchants.com).
FIRST MERCHANTS and the Shield Logo are federally registered trademarks of First Merchants Corporation.
Forward-Looking Statements
This release contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can often, but not always, be identified by the use of words like "believe”, "continue”, "pattern”, "estimate”, "project”, "intend”, "anticipate”, "expect” and similar expressions or future or conditional verbs such as "will”, "would”, "should”, "could”, "might”, "can”, "may”, or similar expressions. These statements include statements about First Merchants' goals, intentions and expectations; statements regarding the First Merchants' business plan and growth strategies; statements regarding the asset quality of First Merchants' loan and investment portfolios; and estimates of First Merchants' risks and future costs and benefits. These forward-looking statements are subject to significant risks, assumptions and uncertainties that may cause results to differ materially from those set forth in forward-looking statements, including, among other things: possible changes in monetary and fiscal policies, and laws and regulations; the effects of easing restrictions on participants in the financial services industry; the cost and other effects of legal and administrative cases; possible changes in the credit worthiness of customers and the possible impairment of collectability of loans; fluctuations in market rates of interest; competitive factors in the banking industry; changes in the banking legislation or regulatory requirements of federal and state agencies applicable to bank holding companies and banks like First Merchants' affiliate bank; continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; changes in market, economic, operational, liquidity (including the ability to grow and maintain core deposits and retain large, uninsured deposits), credit and interest rate risks associated with the First Merchants' business; and other risks and factors identified in each of First Merchants' filings with the Securities and Exchange Commission. First Merchants does not undertake any obligation to update any forward-looking statement, whether written or oral, relating to the matters discussed in this press release. In addition, First Merchants' past results of operations do not necessarily indicate its anticipated future results.
| CONSOLIDATED BALANCE SHEETS | |||||||
| (Dollars In Thousands) | March 31, | ||||||
| 2025 | 2024 | ||||||
| ASSETS | |||||||
| Cash and due from banks | $ | 86,113 | $ | 100,514 | |||
| Interest-bearing deposits | 331,534 | 410,497 | |||||
| Investment securities available for sale | 1,378,489 | 1,620,213 | |||||
| Investment securities held to maturity, net of allowance for credit losses | 2,048,632 | 2,163,361 | |||||
| Loans held for sale | 23,004 | 15,118 | |||||
| Loans | 13,004,905 | 12,465,582 | |||||
| Less: Allowance for credit losses - loans | (192,031 | ) | (204,681 | ) | |||
| Net loans | 12,812,874 | 12,260,901 | |||||
| Premises and equipment | 128,749 | 132,706 | |||||
| Federal Home Loan Bank stock | 45,006 | 41,758 | |||||
| Interest receivable | 88,352 | 92,550 | |||||
| Goodwill | 712,002 | 712,002 | |||||
| Other intangibles | 18,302 | 25,142 | |||||
| Cash surrender value of life insurance | 304,918 | 306,028 | |||||
| Other real estate owned | 4,966 | 4,886 | |||||
| Tax asset, deferred and receivable | 87,665 | 101,121 | |||||
| Other assets | 369,181 | 331,006 | |||||
| TOTAL ASSETS | $ | 18,439,787 | $ | 18,317,803 | |||
| LIABILITIES | |||||||
| Deposits: | |||||||
| Noninterest-bearing | $ | 2,185,057 | $ | 2,338,364 | |||
| Interest-bearing | 12,276,921 | 12,546,220 | |||||
| Total Deposits | 14,461,978 | 14,884,584 | |||||
| Borrowings: | |||||||
| Federal funds purchased | 185,000 | - | |||||
| Securities sold under repurchase agreements | 122,947 | 130,264 | |||||
| Federal Home Loan Bank advances | 972,478 | 612,778 | |||||
| Subordinated debentures and other borrowings | 62,619 | 118,612 | |||||
| Total Borrowings | 1,343,044 | 861,654 | |||||
| Interest payable | 13,304 | 19,262 | |||||
| Other liabilities | 289,247 | 327,500 | |||||
| Total Liabilities | 16,107,573 | 16,093,000 | |||||
| STOCKHOLDERS' EQUITY | |||||||
| Preferred Stock, $1,000 par value, $1,000 liquidation value: | |||||||
| Authorized -- 600 cumulative shares | |||||||
| Issued and outstanding - 125 cumulative shares | 125 | 125 | |||||
| Preferred Stock, Series A, no par value, $2,500 liquidation preference: | |||||||
| Authorized -- 10,000 non-cumulative perpetual shares | |||||||
| Issued and outstanding - 10,000 non-cumulative perpetual shares | 25,000 | 25,000 | |||||
| Common Stock, $.125 stated value: | |||||||
| Authorized -- 100,000,000 shares | |||||||
| Issued and outstanding - 57,810,232 and 58,564,819 shares | 7,226 | 7,321 | |||||
| Additional paid-in capital | 1,183,263 | 1,208,447 | |||||
| Retained earnings | 1,306,911 | 1,181,939 | |||||
| Accumulated other comprehensive loss | (190,311 | ) | (198,029 | ) | |||
| Total Stockholders' Equity | 2,332,214 | 2,224,803 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 18,439,787 | $ | 18,317,803 | |||
| CONSOLIDATED STATEMENTS OF INCOME | Three Months Ended | ||||||
| (Dollars In Thousands, Except Per Share Amounts) | March 31, | ||||||
| 2025 | 2024 | ||||||
| INTEREST INCOME | |||||||
| Loans: | |||||||
| Taxable | $ | 187,728 | $ | 198,023 | |||
| Tax-exempt | 10,532 | 8,190 | |||||
| Investment securities: | |||||||
| Taxable | 8,372 | 8,748 | |||||
| Tax-exempt | 12,517 | 13,611 | |||||
| Deposits with financial institutions | 2,372 | 6,493 | |||||
| Federal Home Loan Bank stock | 997 | 835 | |||||
| Total Interest Income | 222,518 | 235,900 | |||||
| INTEREST EXPENSE | |||||||
| Deposits | 80,547 | 98,285 | |||||
| Federal funds purchased | 812 | - | |||||
| Securities sold under repurchase agreements | 742 | 1,032 | |||||
| Federal Home Loan Bank advances | 9,364 | 6,773 | |||||
| Subordinated debentures and other borrowings | 783 | 2,747 | ()[\]\\.,;:\s@\"]+)*)|(\".+\"))@((\[[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\])|(([a-zA-Z\-0-9]+\.)+[a-zA-Z]{2,}))$/;return b.test(a)}$(document).ready(function(){if(performance.navigation.type==2){location.reload(true)}$("iframe[data-lazy-src]").each(function(b){$(this).attr("src",$(this).attr("data-lazy-src"))});if($(".owl-article-body-images").length){$(".owl-article-body-images").owlCarousel({items:1,loop:true,center:false,dots:false,autoPlay:true,mouseDrag:false,touchDrag:false,pullDrag:false,nav:true})}var a=$("#display_full_text").val();if(a==0){$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:$("#cms_article_id").val()},dataType:"json",success:function(b){},error:function(b,d,c){}})}$(".read-full-article").on("click",function(d){d.preventDefault();var b=$(this).attr("data-cmsArticleId");var c=$(this).attr("data-productId");var f=$(this).attr("data-href");dataLayer.push({event:"paywall_click",paywall_name:"the_manila_times_premium",paywall_id:"paywall_article_"+b});$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:b,productId:c},dataType:"json",success:function(e){window.location.href=$("#BASE_URL").val()+f},error:function(e,h,g){}})});$(".article-embedded-newsletter-form .close-btn").on("click",function(){$(".article-embedded-newsletter-form").fadeOut(1000)})});$(document).on("click",".article-embedded-newsletter-form .newsletter-button",function(){var b=$(".article-embedded-newsletter-form .newsletter_email").val();var d=$("#ga_user_id").val();var c=$("#ga_user_yob").val();var a=$("#ga_user_gender").val();var e=$("#ga_user_country").val();if(validateEmail(b)){$.ajax({url:"/ajax/sendynewsletter",type:"POST",data:{email:b},success:function(f){$(".article-embedded-newsletter-form .nf-message").html(f);$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000);dataLayer.push({event:"newsletter_sub",user_id:d,product_name:"newsletter",gender:a,yob:c,country:e})},error:function(f,h,g){}})}else{$(".article-embedded-newsletter-form .nf-message").html("Please enter a valid email address.");$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000)}});$(document).on("click",".article-embedded-newsletter-form .nf-message",function(){$(this).removeClass("show");$(this).html("")});
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