First Merchants Posts $1.09 Q3 EPS, Rebounding From Q2 Provision Hit
FRME sits 15% above its 52-week low of $34.66.
Summary
First Merchants reported third-quarter EPS of $1.09, a sharp step up from the $0.74 adjusted EPS in Q2, when two commercial credits forced a $33 million provision and nonaccrual loans jumped. The quarter's net income was $68.3 million and its net interest margin was 3.44%, with adjusted EPS of USD 1.1 topping the IBES estimate of USD 1.04. The key question is whether credit costs normalized after the Q2 blowup or whether the quarter leaned on one-time items. This is the first results print since the October 1 8-K naming CEO Mark Hardwick's year-end retirement and Mike Stewart's elevation, so the quarter is also the first read on the transition backdrop. The company is mid-way through deploying $100 million of 6.750% subordinated notes due 2036 raised in September, which adds interest expense against the new $100 million buyback authorization.
At the time of this announcement, FRME was trading at $39.96 on NASDAQ in the Finance sector, with a market capitalization of approximately $2.5B. The 52-week trading range was $34.66 to $45.33. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.