Business
First Merchants Corporation Announces Fourth Quarter 2023 Earnings Per Share
MUNCIE, Ind., Jan. 25, 2024 (GLOBE NEWSWIRE) -- First Merchants Corporation (NASDAQ - FRME) Fourth Quarter 2023 Highlights: Net income available to common
About this update from First Merchants Corporation
[{"type":"text","content":"MUNCIE, Ind., Jan. 25, 2024 (GLOBE NEWSWIRE) -- First Merchants Corporation (NASDAQ - FRME) Fourth Quarter 2023 Highlights: Net income available to common stockholders was $42.0 million and diluted earnings per common share totaled $0.71 compared to $70.3 million and $1.19 in the fourth quarter of 2022, and $55.9 million and $0.94 in the third quarter of 2023. Net income and diluted earnings per common share, excluding one-time charges of $12.7 million incurred during the quarter, totaled $51.6 million and $0.87, respectively.Strong capital position with Common Equity Tier 1 Capital Ratio of 11.35 percent.Total loans grew $202.6 million, or 6.6 percent annualized on a linked quarter basis, and $608.6 million, or 5.1 percent during the last twelve months when excluding the impact of a non-relationship commercial loan portfolio sale of $116.6 million that occurred during the second quarter.Total deposits increased $174.9 million, or 4.8 percent annualized on a linked quarter basis, and $438.7 million, or 3.1 percent during the last twelve months.Nonaccrual loans totaled $53.6 million compared to $53.1 million on a linked quarter basis.The efficiency ratio totaled 63.26 percent for the quarter and 55.56% excluding $12.7 million of one-time charges incurred during the quarter. Mark Hardwick, Chief Executive Officer, stated, \"During a year where safety and soundness became the highest priority of stakeholders, we are very pleased with the positioning of our balance sheet. The Bank’s liquidity position improved by $585 million as cash increased by $300 million and borrowings declined by $285 million year over year. Our tangible common equity increased by $222 million driving our tangible common equity ratio from 7.37 percent to 8.44 percent and the allowance to loans continues to be top decile totaling 1.64 percent.\" Hardwick added, \"Our team built this resilient balance sheet while also producing core loan growth of just over 5 percent and deposit growth of 3 percent. In a year with large bank failures, our company produced solid results with net income totaling $222 million, a strong ROA of 1.23%, and an efficiency ratio of 55%. These results are without any adjustments for one-time charges totaling $12.7 million which were incurred in the fourth quarter. The actions taken during the quarter to reduce costs will lead to an even m...