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 -2.19% change in stock price 10 days leading up to the earnings, and a +1.64% change 10 days following the report. On the earnings day itself, the stock moves by -0.59%. 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
--
--
--
Gross Margin
--
--
--
Operating Margin
--
--
--
Net Margin
--
--
--
EPS
--
--
--
No Data Available
FRME Earnings Analysis
First Merchants Corp Corporation (FRME.O) Earnings Conference Call
Positive
Earnings Per Share Beat: First Merchants Corporation reported an EPS of $0.94, beating expectations of $0.91, indicating strong financial performance.
Loan Growth Performance: The company achieved a 4.8% annualized loan growth in Q1 2025, following a strong 6% growth in the previous quarter, showcasing effective loan management.
Net Income Growth: Net income increased by 15.6% year-over-year to $54.9 million, reflecting successful balance sheet growth and margin improvement.
Core Earnings Growth: Core earnings per share grew by 10.6% year-over-year, demonstrating solid operational performance after adjusting for prior year technology integration expenses.
Share Repurchase Program: The company has a new $100 million share repurchase program, with $10 million already repurchased, indicating confidence in its stock value.
Tangible Common Equity Strength: Tangible common equity stands at 8.9%, providing optimal capital flexibility and a strong buffer against market volatility.
Commercial Loan Growth: The commercial loan segment saw significant growth, particularly in C&I loans, which increased by $248 million, reflecting strong demand in the market.
Mortgage Sector Performance: Mortgage unit volume increased over 15% year-over-year, with dollar volume up over 30%, indicating robust performance in the mortgage sector.
Expense Management Efficiency: The company maintained effective expense management, resulting in a decrease in non-interest expenses by $3.4 million from the prior quarter, contributing to improved efficiency.
Tangible Book Value Growth: Tangible book value per share increased by 9.1% year-over-year, reflecting strong capital growth and shareholder value enhancement.
Negative
Deposit Decline Analysis: The company experienced a decline in total deposits by 1.6% on an annualized basis, primarily due to a significant drop in public funds, which accounted for $208 million of the total decline.
Core Relationship Balances Decline: Core relationship balances also saw a decrease of $20 million, attributed to companies managing their working capital levels, indicating potential liquidity issues among clients.
Loan Portfolio Yield Decline: The total loan portfolio yield decreased by 34 basis points to 4.21%, reflecting a downward trend in variable rate loans due to lower short-term rates, which could impact future interest income.
Noninterest Income Decline: Noninterest income totaled $30 million, with a decline in customer-related fees from the previous quarter, indicating a potential slowdown in fee-generating activities.
Net Interest Income Decline: Net interest income decreased by $3.8 million from the prior quarter, which could signal challenges in maintaining revenue levels amid changing market conditions.
Net Charge-Offs Analysis: The company reported net charge-offs of $4.9 million for the quarter, which, while manageable, indicates some level of credit risk and potential asset quality concerns.
Property Sale Delay: The planned sale of a $22 million nonperforming multifamily property was delayed, which could reflect ongoing challenges in asset management and recovery efforts.
FRME FAQs
How does FRME typically perform around its earnings report dates?
Is First Merchants Corp (FRME) Q1 2025 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
FRME Earning Call Sentiment
First Merchants Corporation (NASDAQ:FRME) Q1 2025 Earnings Call Transcript
FRME.O
-2.58%Positive
The earnings call presents mixed signals. Positive factors include a strong EPS growth, a new share repurchase program, and stable capital ratios. However, concerns about market volatility, economic uncertainty, declining net interest margin, and potential challenges in loan growth temper the optimism. The Q&A reveals management's uncertainty regarding tariffs and credit impact, which adds to the cautious outlook. Given the company's small-cap status, the stock price is likely to remain within a neutral range of -2% to 2%.
