First Merchants Corporation (FRME) has reported a 23.39 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $21.06 million, or $0.51 a share in the quarter, compared with $17.07 million, or $0.45 a share for the same period last year.
Revenue during the quarter grew 8.98 percent to $72.64 million from $66.66 million in the previous year period. Net interest income for the quarter rose 14.62 percent over the prior year period to $57.68 million. Non-interest income for the quarter rose 3.24 percent over the last year period to $16.86 million.
Net interest margin improved 9 basis points to 3.94 percent in the quarter from 3.85 percent in the last year period.
Michael C. Rechin, president and chief executive officer, stated, "First Merchants focused its 2016 plan on proving our progress after completing two acquisitions and several major organizational initiatives in 2015 and the first quarter of 2016. We are pleased to show two consecutive quarters of clean, high-performance results while demonstrating the strength of our core franchise by delivering organic growth, profitability and efficiency. Our results reflect a growing company with a 1.22 percent return on assets and a 55.12 percent efficiency ratio. As we focus on the road ahead, our healthy economic markets should allow for strong organic growth and continued high-performance."
Assets outpace liabilities growth
Total assets stood at $7,022.35 million as on Sep. 30, 2016, up 13.45 percent compared with $6,189.80 million on Sep. 30, 2015. On the other hand, total liabilities stood at $6,121.49 million as on Sep. 30, 2016, up 12.88 percent from $5,422.81 million on Sep. 30, 2015.
Loans outpace deposit growth
Net loans stood at $4,910.39 million as on Sep. 30, 2016, up 15.30 percent compared with $4,258.85 million on Sep. 30, 2015. Deposits stood at $5,444.24 million as on Sep. 30, 2016, up 13.08 percent compared with $4,814.59 million on Sep. 30, 2015. Noninterest-bearing deposit liabilities were $1,307.89 million or 24.02 percent of total deposits on Sep. 30, 2016, compared with $1,110.90 million or 23.07 percent of total deposits on Sep. 30, 2015.
Investments stood at $1,300.43 million as on Sep. 30, 2016, up 7.58 percent or $91.64 million from year-ago. Shareholders equity stood at $900.86 million as on Sep. 30, 2016, up 17.46 percent or $133.88 million from year-ago.
Return on average assets moved up 11 basis points to 1.22 percent in the quarter from 1.11 percent in the last year period. At the same time, return on average equity increased 40 basis points to 9.39 percent in the quarter from 8.99 percent in the last year period.
Nonperforming assets moved down 5.74 percent or $2.94 million to $48.29 million on Sep. 30, 2016 from $51.23 million on Sep. 30, 2015. Meanwhile, nonperforming assets to total assets was 0.69 percent in the quarter, down from 0.83 percent in the last year period.
Average equity to average assets ratio was 12.99 percent for the quarter, up from 12.34 percent for the previous year quarter.
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