Q2 2024 First Merchants Corp Earnings Call Transcript
Key Points
- Net interest margin increased by 6 basis points, and net interest income rose by $1.5 million.
- Loan growth totaled 6.1% for the quarter, with strong commercial and industrial (C&I) growth of over 13%.
- Efficiency ratio improved to 53.84%, below the key performance indicator of 55%.
- Treasury Management fees grew more than 10% during the quarter.
- Earnings per share totaled $0.68 in Q2, with a year-to-date EPS of $1.48.
- Provision expense totaled $24.5 million for the quarter due to significant deterioration in a financed business.
- Net charge-offs were $39.6 million, primarily from two relationships, including a $27.5 million charge-off from a transportation company.
- Total deposit balances declined due to normal seasonality and interest rate management.
- The allowance for credit losses coverage ratio declined from 1.64% to 1.5% this quarter.
- Investment real estate portfolio experienced higher-than-normal runoff in 2024, particularly in the multifamily asset class.
Thank you for standing by, and welcome to the First Merchants Corporation Second Quarter 2024 earnings conference call. Before we begin, management would like to remind you that today's call contains forward-looking statements with respect to the future performance and financial condition. Our First Merchants Corporation that involve risks and uncertainties for their information is contained within the press release, which we encourage you to review.
Additionally, management may refer to non-GAAP measures, which are intended to supplement but not substitute for the most directly comparable GAAP measures. The press release available on the website contains financial and other quantitative information to be discussed today as well as the reconciliation of GAAP to non-GAAP measures. As a reminder, today's call is being recorded.
I will now turn the call over to Mr. Mark Hardwick, CEO. Mr. Hardwick, you may begin.
Good morning, and welcome to the First
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