First Merchants reports Q2 EPS 68c, consensus 80c

Strong capital position with Common Equity Tier 1 Capital Ratio of 11.02 percent. Net interest margin totaled 3.16 percent compared to 3.10 percent on a linked quarter basis. Total loans grew $191.2 million, or 6.1 percent annualized on a linked quarter basis, and $374.4 million, or 3.0 percent during the last twelve months. Total deposits declined $315.5 million, or 8.5 percent annualized on a linked quarter basis. Mark Hardwick, Chief Executive Officer, stated, “We are pleased that net interest margin improved by 6 basis points over the first quarter of 2024 and that net interest income increased by $1.5 million over the same period. Non-interest income and non-interest expense also compared favorably helping the company produce an efficiency ratio better than our stated key performance indicator of less than 55 percent.” Hardwick added, “The elevated provision expense driven by higher than normal net charge-off’s was the singular item that weakened our performance in the quarter.”