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First Merchants 2Q Profit Falls
First Merchants Corp., which operates banks in Indiana and Ohio, said Monday its second-quarter earnings decreased 8 percent, due to a decline in mortgage loans sales and rising rates on commercial checking accounts.
Quarterly net income fell to $7.3 million, or 39 cents per share, from $7.9 million, or 43 cents per share during the same period last year. The results include a charge of $290,000, or 1 cent per share, related to the disposition of fixed assets from a branch closing.
Net interest income, or earnings from interest on deposits and loans, fell less than 1 percent to $27.8 million, from $27.9 million in the same period in 2005.
First Merchants blamed the decline on a challenging interest-rate climate.
The Federal Reserve has raised short-term interest rates 17 consecutive times to 5.25 percent, the highest level since April 2001, while long-term rates have remained fairly stagnant.
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Huntington reports 2nd-quarter earnings up 5 percent
Bank holding company Huntington Bancshares Inc. said on Friday that its second-quarter earnings were up 5 percent, helped by an increase in interest income and commercial loans.
Huntington reported profits of $111.6 million, or 46 cents a share, for the quarter ended June 30, compared with $106.4 million, or 45 cents a share, a year ago.
Analysts surveyed by Thomson Financial expected earnings of 44 cents a share.
Huntington said interest income was up $21.3 million, or 9 percent, to $266 million for the quarter compared with $245 million a year ago, reflecting growth in commercial loans, residential mortgages and home equity loans. Average total commercial loans increased 12 percent, or $1.2 billion, for the quarter.
For the year, the company headquartered in Columbus, Ohio, has made $216.1 million, or 90 cents a share, compared with earnings of $202.9 million, or 86 cents a share, a year ago.