First Merchants Q2 net income rises

Overview

• First Merchants Q2 net income rises to $56.4 mln, EPS $0.98

• Co repurchased 582,486 shares totaling $22.1 mln during Q2

• Total loans grew $297.6 mln, 9.1% annualized, linked qtr basis

Result Drivers

• LOAN GROWTH - Total loans grew by $297.6 mln, or 9.1% annualized, primarily in Commercial & Industrial loans

• DEPOSIT INCREASE - Total deposits increased by $335.6 mln, or 9.3% annualized, on a linked quarter basis

• MARGIN EXPANSION - Net interest margin rose to 3.25% due to higher yields on earning assets

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for First Merchants Corp is $44.00, about 5.7% above its July 22 closing price of $41.50

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nGNX60TyLS