First Merchants Q4 adjusted EPS beats analyst expectations

Overview

• Financial holding company's Q4 adjusted EPS beat analyst expectations

• Adjusted net income for Q4 beat analyst expectations

• Company received regulatory approval for First Savings Financial acquisition

Outlook

• Company expects completion of First Savings acquisition to enhance Indiana presence

• First Merchants highlights strong capital and liquidity positions for future success

Result Drivers

• LOAN GROWTH - Total loans increased by $197.4 mln on a linked quarter basis and $938.8 mln year-over-year, supporting higher net interest income

• DEPOSIT INCREASE - Total deposits rose by $424.9 mln on a linked quarter basis and $773.2 mln year-over-year, strengthening the capital position

• INTEREST RECOVERY - Net interest income was positively impacted by a $3.3 mln interest recovery from resolving a nonaccrual commercial real estate loan

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "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 $45.00, about 18.1% above its January 23 closing price of $38.09

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nGNX54GRWp

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