First Merchants (FRME) Reports Q1 Earnings: What Key Metrics Have to Say

First Merchants (FRME) reported $153.7 million in revenue for the quarter ended March 2024, representing a year-over-year decline of 9.1%. EPS of $0.85 for the same period compares to $1.07 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $154.95 million, representing a surprise of -0.81%. The company delivered an EPS surprise of +3.66%, with the consensus EPS estimate being $0.82.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how First Merchants performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Efficiency Ratio: 59.2% compared to the 58.2% average estimate based on three analysts.

• Net Interest Margin (FTE): 3.1% versus the three-analyst average estimate of 3.1%.

• Net Charge-offs (Recoveries) as % of Average Loans (Annualized): 0.1% versus the two-analyst average estimate of 0.1%.

• Average Balance - Total Earning Assets: $17.12 billion versus $17.25 billion estimated by two analysts on average.

• Total Non-Interest Income: $26.64 million versus $29.83 million estimated by three analysts on average.

• Net gains and fees on sales of loans: $3.25 million compared to the $4.03 million average estimate based on three analysts.

• Other income: $0.50 million versus the two-analyst average estimate of $0.80 million.

• Other customer fees: $0.43 million versus the two-analyst average estimate of $0.40 million.

• Net Interest Income (FTE): $132.86 million compared to the $133.08 million average estimate based on two analysts.

• Fiduciary and wealth management fees: $8.20 million compared to the $8.29 million average estimate based on two analysts.

• Service charges on deposit accounts: $7.91 million compared to the $7.70 million average estimate based on two analysts.

• Derivative hedge fees: $0.26 million versus the two-analyst average estimate of $0.90 million.

View all Key Company Metrics for First Merchants here>>>

Shares of First Merchants have returned +0.9% over the past month versus the Zacks S&P 500 composite's -3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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