First Merchants slides on earnings miss driven by loan-loss provision
FRME•Shares fall after quarterly earnings miss
Shares of lender First Merchants Corporation FRME.O were down 6% at $41.1 after the company on late Wednesday posted second-quarter adjusted net income of $46.4 million, below analysts' estimates of $65 million, according to data compiled by LSEG.
Analyst sentiment and year-to-date performance
Four of six analysts rate the stock a "buy" and two a "hold"; their median price target is $48, according to data compiled by LSEG. Including the session's move, the stock is up 9.3% year to date.
Higher credit-loss provision weighs on results
Provision for credit losses increased to $33 million versus $5.6 million a year earlier. Analysts at Raymond James said credit metrics softened as two commercial loans placed on nonaccrual drove a higher loss provision.
