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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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United Community Banks, Inc. Reports 17% Gain in Diluted Earnings ...
United Community Banks, Inc. (NASDAQ: UCBI), Georgia's third-largest bank holding company, today announced record financial results for the second quarter of 2006. Compared with the second quarter of 2005, the company achieved a 16% increase in total revenue, a 23% rise in net income and a 17% gain in diluted earnings per share.
For the second quarter of 2006, net income was $16.9 million compared with $13.8 million a year earlier. Diluted earnings per share increased to $.41 from $.35 a year ago. Total revenue, on a taxable equivalent basis, was $70.6 million compared with $60.6 million for the second quarter of 2005. Return on tangible equity was 17.68% and return on assets was 1.10%, compared with 19.21% and 1.03%, respectively, a year ago.
"Strong demand for loans and deposits continued across all markets," said Jimmy Tallent, President and Chief Executive Officer of United Community Banks.