FRME Earnings Prediction
The chart below shows how FRME performed 10 days before and after its earnings report, based on data from the past quarters. Typically, FRME sees a -2.96% change in stock price 10 days leading up to the earnings, and a +2.60% change 10 days following the report. On the earnings day itself, the stock moves by -0.30%. This data can give you a slight idea of what to expect for the next quarter's release.
FRME Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
142.47M
-4.53%
-2.79%
Gross Margin
--
--
--
Operating Margin
39.25%
-9.65%
34.46%
Net Margin
34.53%
-8.58%
26.76%
EPS
0.84
-10.64%
23.53%
No Data Available
FRME Earnings Analysis
First Merchants Corp Corporation (FRME.O) Earnings Conference Call
Positive
Asset and Loan Growth: 1. Strong Asset Growth: First Merchants Corporation reported total assets of $18.3 billion, with total loans reaching $12.7 billion and total deposits at $14.4 billion, indicating robust financial health.
Tangible Book Value Increase: 2. Increased Tangible Book Value: The tangible book value per share increased by $4.21 or 19% year-over-year, reaching $26.64 per share, reflecting strong earnings performance.
Net Interest Margin Improvement: 3. Improved Net Interest Margin: The adjusted net interest margin improved by 7 basis points from Q2 to Q3, contributing to a sub-55% efficiency ratio for the quarter, showcasing effective cost management.
Non-Interest Income Increase: 4. Growth in Non-Interest Income: Non-interest income, when normalized for a loss on securities, totaled $34 million, marking an 8.4% increase over the prior quarter, driven by higher customer-related fees.
Commercial Loan Expansion: 5. Strong Commercial Loan Growth: The commercial and industrial (C&I) loan portfolio grew by nearly 4.5% annualized year-to-date, with a strong pipeline indicating continued growth potential in the upcoming quarters.
Negative
Investment Portfolio Decline: 1. Decline in Investment Real Estate Portfolio: The investment real estate portfolio has declined over 11% throughout 2024, amounting to nearly $150 million, indicating significant contraction in this segment.
Securities Sale Loss: 2. Loss from Securities Sale: The company recorded a $9.1 million loss from the sale of securities during the third quarter, negatively impacting non-interest income.
Non-Performing Assets Rise: 3. Increase in Non-Performing Assets: Non-performing assets and 90-day delinquent loans increased by $12.4 million, ending the quarter at $78.4 million, reflecting deteriorating asset quality.
Net Charge-Offs Analysis: 4. Net Charge-Offs: The company reported net charge-offs of $6.7 million for the quarter, primarily due to a $5.6 million charge-off related to a trucking company loss, indicating credit quality issues.
Loan Growth Challenges: 5. Flat Loan Growth: Total loans grew only 0.5% on an annualized basis during the quarter, following a previous quarter's growth of 6%, highlighting ongoing challenges in loan expansion.
FRME FAQs
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FRME Earning Call Sentiment
First Merchants Corporation (FRME) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
FRME.O
2.41%Positive
The earnings call summary indicates strong financial performance with improved EPS, net interest margin, and tangible book value. The Q&A section reveals cautious optimism, with management addressing concerns about interest rates and technology initiatives. The company's strategy for growth and expense management is clear, and the market strategy seems promising. The positive sentiment is supported by strong financial metrics and optimistic guidance, suggesting a likely stock price increase of 2% to 8% over the next two weeks.
