First Merchants Corporation (FRME) has reported a 57.25 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $22.29 million, or $0.55 a share in the quarter, compared with $14.18 million, or $0.37 a share for the same period last year.
Revenue during the quarter grew 12.44 percent to $72.08 million from $64.10 million in the previous year period. Net interest income for the quarter rose 16.58 percent over the prior year period to $58.37 million. Non-interest income for the quarter rose 14.89 percent over the last year period to $16.12 million.
First Merchants Corp has made provision of $2.42 million for loan losses during the quarter, up 479.62 percent from $0.42 million in the same period last year.
Net interest margin improved 15 basis points to 3.90 percent in the quarter from 3.75 percent in the last year period. Efficiency ratio for the quarter improved to 52.18 percent from 65.77 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
Michael C. Rechin, President and Chief Executive Officer, stated, "First Merchants’ 2016 results included record performance throughout nearly every category of the balance sheet and income statement which resulted in successful achievement of our year’s high performance targets. Crisp execution, the economic and interest rate outlook, combined with our recently announced Columbus, Ohio expansion, position us to deliver sustained value through 2017 and beyond."
Liabilities outpace assets growth
Total assets stood at $7,211.61 million as on Dec. 31, 2016, up 6.66 percent compared with $6,761 million on Dec. 31, 2015. On the other hand, total liabilities stood at $6,309.95 million as on Dec. 31, 2016, up 6.76 percent from $5,910.49 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $5,073.61 million as on Dec. 31, 2016, up 9.55 percent compared with $4,631.37 million on Dec. 31, 2015. Deposits stood at $5,556.50 million as on Dec. 31, 2016, up 5.04 percent compared with $5,289.65 million on Dec. 31, 2015.
Noninterest-bearing deposit liabilities were $1,348.27 million or 24.26 percent of total deposits on Dec. 31, 2016, compared with $1,266.03 million or 23.93 percent of total deposits on Dec. 31, 2015.
Investments stood at $1,304.50 million as on Dec. 31, 2016, up 2.15 percent or $27.51 million from year-ago. Shareholders equity stood at $901.66 million as on Dec. 31, 2016, up 6.01 percent or $51.15 million from year-ago.
Return on average assets moved up 36 basis points to 1.26 percent in the quarter from 0.90 percent in the last year period. At the same time, return on average equity increased 255 basis points to 9.87 percent in the quarter from 7.32 percent in the last year period.
Nonperforming assets moved down 13.56 percent or $6.86 million to $43.71 million on Dec. 31, 2016 from $50.57 million on Dec. 31, 2015. Meanwhile, nonperforming assets to total assets was 0.61 percent in the quarter, down from 0.75 percent in the last year period.
Average equity to average assets ratio was 12.75 percent for the quarter, up from 12.29 percent for the previous year quarter.
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