First Merchants (NASDAQ:FRME) Posts Earnings Results, Beats Estimates By $0.06 EPS

Key Points

• First Merchants beat quarterly expectations: The bank reported EPS of $1.10, exceeding the $1.04 consensus estimate by $0.06, while revenue of $205.33 million also topped expectations.
• Shares edged lower after the report: The stock fell 0.4% to $39.96, compared with a 52-week range of $34.66 to $45.33 and a market capitalization of approximately $2.51 billion.
• Investors received a 3.7% dividend yield: First Merchants pays a quarterly dividend of $0.37 per share, or $1.48 annualized. Analysts maintain a “Moderate Buy” consensus rating with a $46 average price target.

First Merchants (NASDAQ:FRME - Get Free Report) released its quarterly earnings results on Wednesday. The bank reported $1.10 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.04 by $0.06, FiscalAI reports. The business had revenue of $205.33 million during the quarter, compared to the consensus estimate of $203.94 million. First Merchants had a return on equity of 8.86% and a net margin of 17.05%.

First Merchants Trading Down 0.4%

Shares of First Merchants stock traded down $0.15 during mid-day trading on Wednesday, hitting $39.96. 377,817 shares of the stock were exchanged, compared to its average volume of 413,929. The stock has a market capitalization of $2.51 billion, a price-to-earnings ratio of 12.81 and a beta of 0.87. First Merchants has a twelve month low of $34.66 and a twelve month high of $45.33. The company has a current ratio of 0.95, a quick ratio of 0.95 and a debt-to-equity ratio of 0.56. The company has a 50-day simple moving average of $40.96 and a 200 day simple moving average of $41.31.

First Merchants Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, September 18th. Shareholders of record on Friday, September 4th were paid a dividend of $0.37 per share. This represents a $1.48 annualized dividend and a dividend yield of 3.7%. The ex-dividend date of this dividend was Friday, September 4th. First Merchants's dividend payout ratio (DPR) is currently 47.44%.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on FRME shares. Stephens raised shares of First Merchants to a "hold" rating in a research note on Tuesday, September 22nd. Raymond James Financial upgraded shares of First Merchants from a "market perform" rating to an "outperform" rating and set a $46.00 target price for the company in a research report on Tuesday, October 6th. Weiss Ratings raised shares of First Merchants from a "hold (c+)" rating to a "buy (b)" rating in a report on Monday, August 3rd. Finally, Piper Sandler lowered their price target on shares of First Merchants from $51.00 to $46.00 and set an "overweight" rating on the stock in a research report on Monday, October 5th. Three analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $46.00.

First Merchants Company Profile

First Merchants Corporation is a financial services holding company headquartered in Muncie, Indiana. Through its principal subsidiary, First Merchants Bank, the company provides banking and related financial services to individuals, families, businesses and institutions.

First Merchants Bank offers deposit accounts, consumer and commercial lending, mortgage services, treasury and cash-management solutions, online and mobile banking, investment management and trust services. The company also provides wealth-management and insurance-related services through affiliated operations.

Founded in 1893, First Merchants has expanded through organic growth and acquisitions and serves customers across Indiana, Ohio and Michigan.

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