First Merchants Corporation reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting a decrease in net income and significant changes in its loan and deposit portfolios. For Q3 2024, net income available to common stockholders was $48.7 million, down from $55.9 million in Q3 2023, with earnings per share decreasing to $0.84 from $0.95. For the nine months ended September 30, 2024, net income was $135.6 million, compared to $179.9 million in the same period of 2023.
Total assets as of September 30, 2024, were $18.36 billion, a slight decrease from $18.4 billion at the end of 2023. Total loans increased by $182.5 million, or 1.9%, since December 31, 2023, with a notable focus on commercial loans, which constituted 74.7% of the loan portfolio. However, total deposits decreased by $456.4 million, or 4.1%, to $14.4 billion, influenced by the transfer of $287.7 million in deposits to held-for-sale categories due to the planned sale of five branches in Illinois, expected to close in Q4 2024.
Net interest income for Q3 2024 was $131.1 million, slightly down from $133.4 million in Q3 2023, while the net interest margin decreased to 3.09% from 3.15%. The corporation's interest income increased to $241.1 million for Q3 2024, up from $229.1 million in Q3 2023, driven by higher average earning assets. However, total interest expense rose significantly, reflecting the impact of rising interest rates.
The allowance for credit losses on loans was $187.8 million as of September 30, 2024, down from $204.9 million at the end of 2023, representing 1.48% of total loans. Net charge-offs for Q3 2024 were $6.7 million, a decrease from $20.4 million in Q3 2023. The provision for credit losses for the nine months ended September 30, 2024, was $31.5 million, compared to $2.0 million in the same period of 2023.
In terms of strategic developments, First Merchants Corporation is exiting the suburban Chicago market through the sale of branches, which reflects a shift in its operational focus. The corporation continues to maintain strong capital ratios, with a Common Equity Tier 1 Capital Ratio of 11.25% as of September 30, 2024. Overall, the financial results indicate a challenging environment with pressures on profitability and asset quality, alongside strategic adjustments in its branch operations.
About FIRST MERCHANTS CORP
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