The average consensus recommendation for the banks peer group is "buy".
Wall Street's median 12-month price target for First Merchants Corp is $48.00, about 9% above its July 21 closing price of $44.03.
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago.
Result drivers
Credit quality deterioration - Higher provision expense was driven by two commercial lending relationships placed on nonaccrual status, with associated reserves of $29.7 million recorded
Loan and deposit growth - Loan growth of $221.7 million and deposit growth of $267.8 million on a linked-quarter basis supported balance sheet expansion
Noninterest income rebound - Noninterest income increased from the prior quarter, reflecting the absence of a negative mortgage loan valuation adjustment and higher gains on sales of loans and derivative hedge fees
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