FRME First Merchants Corporation

First Merchants Corporation Announces First Quarter 2025 Earnings Per Share

First Merchants Corporation Announces First Quarter 2025 Earnings Per Share

MUNCIE, Ind., April 24, 2025 (GLOBE NEWSWIRE) -- First Merchants Corporation (NASDAQ - FRME)

First Quarter 2025 Highlights:

  • Net income available to common stockholders was $54.9 million and diluted earnings per common share totaled $0.94 compared to adjusted net income and diluted earnings per common share1 of $50.1 million and $0.85 in the first quarter of 2024. Adjusted net income and diluted earnings per common share1 in the fourth quarter of 2024 were $58.1 million and $1.00, respectively.
  • Robust capital position with Common Equity Tier 1 Capital Ratio of 11.50%.
  • Repurchased 246,751 shares totaling $10 million year-to-date; Redeemed $30 million of sub debt.
  • Total loans grew $154.9 million, or 4.8% annualized, on a linked quarter basis, and $547.2 million, or 4.4%, during the last twelve months.
  • Total deposits declined $59.6 million, or 1.6% annualized, on a linked quarter basis, and declined $422.6 million, or 2.8%, during the last twelve months primarily due to the sale of five Illinois branches with $267.4 million in deposits to Old Second National Bank on December 6, 2024.
  • Nonperforming assets to total assets were 47 basis points compared to 43 basis points on a linked quarter basis.
  • The efficiency ratio totaled 54.54% for the quarter.

"The first quarter was a strong start to the year with healthy loan growth and increasing profitability," said Mark Hardwick, Chief Executive Officer of First Merchants Bank. "Our 2025 priorities continue to focus on organic loan growth funded by low-cost core deposits, margin stabilization, fee income growth, expense management and credit quality. Given the market volatility and headlines, we are closely monitoring our clients and our markets but have yet to see any signs of stress."

First Quarter Financial Results:

First Merchants Corporation (the “Corporation”) reported first quarter 2025 net income available to common stockholders of $54.9 million compared to adjusted net income available to common stockholders1 of $50.1 million during the same period in 2024. Diluted earnings per common share for the period totaled $0.94 compared to the first quarter of 2024 adjusted diluted earnings per common share1 of $0.85 per share.

Total assets equaled $18.4 billion as of quarter-end and loans totaled $13.0 billion. During the past twelve months, total loans grew by $547.2 million, or 4.4%. On a linked quarter basis, loans grew $154.9 million, or 4.8% annualized.

Investment securities, totaling $3.4 billion, decreased $356.5 million, or 9.4%, during the last twelve months and decreased $33.6 million, or 3.9% annualized on a linked quarter basis. The decline in the last twelve months reflected sales of available for sale securities in 2024 totaling $268.5 million.

Total deposits equaled $14.5 billion as of quarter-end and decreased by $422.6 million, or 2.8%, over the past twelve months. The decline reflected the sale of the Illinois branches during the prior quarter which included $267.4 million in deposits. Total deposits decreased $59.6 million, or 1.6% annualized on a linked quarter basis. The loan to deposit ratio increased to 90.1% at period end from 88.6% in the prior quarter.

The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $192.0 million as of quarter-end, or 1.47% of total loans, a decrease of $0.7 million from prior quarter. Net charge-offs totaled $4.9 million and provision for loans of $4.2 million was recorded during the quarter. Reserves for unfunded commitments totaling $18.0 million remain unchanged from the previous quarter. Non-performing assets to total assets were 0.47% for the first quarter of 2025, an increase of four basis points compared to 0.43% in the prior quarter.

Net interest income totaled $130.3 million for the quarter, a decrease of $4.1 million, or 3.1%, compared to prior quarter and increased $3.2 million, or 2.5%, compared to the first quarter of 2024. Fully taxable equivalent net interest margin was 3.22%, a decrease of six basis points compared to the fourth quarter of 2024 and an increase of 12 basis points compared to the first quarter of 2024. The lower day count in the quarter caused a decline of five basis points in net interest margin from the prior quarter.

Noninterest income totaled $30.0 million for the quarter, a decrease of $12.7 million, compared to the fourth quarter of 2024 and an increase of $3.4 million compared to the first quarter of 2024. Customer-related fees declined by $2.3 million from the previous quarter due to lower derivative hedge fees, gains on sales of mortgage loans and card payment fees. Non-customer-related fees declined $10.4 million from the prior quarter primarily due to the gain on the Illinois branch sale, partially offset by realized losses on the sales of securities recorded in the prior quarter.

Noninterest expense totaled $92.9 million for the quarter, a decrease of $3.4 million from the fourth quarter of 2024 and a decrease of $4.0 million from the first quarter of 2024. The decrease from the fourth quarter of 2024 was due primarily to a decline in marketing expenses, and lower professional fees and employee incentives.

The Corporation’s total risk-based capital ratio totaled 13.22%, common equity tier 1 capital ratio totaled 11.50%, and the tangible common equity ratio totaled 8.90%. These ratios continue to demonstrate the Corporation’s strong capital position.

1 See “Non-GAAP Financial Information” for reconciliation

CONFERENCE CALL

First Merchants Corporation will conduct a fourth quarter earnings conference call and web cast at 11:30 a.m. (ET) on Thursday, April 24, 2025.

To access via phone, participants will need to register using the following link where they will be provided a phone number and access code: ()

To view the webcast and presentation slides, please go to () during the time of the call. A replay of the webcast will be available until April 24, 2026.

Detailed financial results are reported on the attached pages.

About First Merchants Corporation

First Merchants Corporation is a financial holding company headquartered in Muncie, Indiana. The Corporation has one full-service bank charter, First Merchants Bank. The Bank also operates as First Merchants Private Wealth Advisors (as a division of First Merchants Bank).

First Merchants Corporation’s common stock is traded on the NASDAQ Global Select Market System under the symbol FRME. Quotations are carried in daily newspapers and can be found on the company’s Internet web page ().

FIRST MERCHANTS and the Shield Logo are federally registered trademarks of First Merchants Corporation.

Forward-Looking Statements

This release contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can often, but not always, be identified by the use of words like “believe”, “continue”, “pattern”, “estimate”, “project”, “intend”, “anticipate”, “expect” and similar expressions or future or conditional verbs such as “will”, “would”, “should”, “could”, “might”, “can”, “may”, or similar expressions. These statements include statements about First Merchants’ goals, intentions and expectations; statements regarding the First Merchants’ business plan and growth strategies; statements regarding the asset quality of First Merchants’ loan and investment portfolios; and estimates of First Merchants’ risks and future costs and benefits. These forward-looking statements are subject to significant risks, assumptions and uncertainties that may cause results to differ materially from those set forth in forward-looking statements, including, among other things: possible changes in monetary and fiscal policies, and laws and regulations; the effects of easing restrictions on participants in the financial services industry; the cost and other effects of legal and administrative cases; possible changes in the credit worthiness of customers and the possible impairment of collectability of loans; fluctuations in market rates of interest; competitive factors in the banking industry; changes in the banking legislation or regulatory requirements of federal and state agencies applicable to bank holding companies and banks like First Merchants’ affiliate bank; continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; changes in market, economic, operational, liquidity (including the ability to grow and maintain core deposits and retain large, uninsured deposits), credit and interest rate risks associated with the First Merchants’ business; and other risks and factors identified in each of First Merchants’ filings with the Securities and Exchange Commission. First Merchants does not undertake any obligation to update any forward-looking statement, whether written or oral, relating to the matters discussed in this press release. In addition, First Merchants’ past results of operations do not necessarily indicate its anticipated future results.

    
CONSOLIDATED BALANCE SHEETS   
(Dollars In Thousands)March 31,
 2025 2024
ASSETS   
Cash and due from banks$86,113  $100,514 
Interest-bearing deposits 331,534   410,497 
Investment securities available for sale 1,378,489   1,620,213 
Investment securities held to maturity, net of allowance for credit losses 2,048,632   2,163,361 
Loans held for sale 23,004   15,118 
Loans 13,004,905   12,465,582 
Less: Allowance for credit losses - loans (192,031)  (204,681)
Net loans 12,812,874   12,260,901 
Premises and equipment 128,749   132,706 
Federal Home Loan Bank stock 45,006   41,758 
Interest receivable 88,352   92,550 
Goodwill 712,002   712,002 
Other intangibles 18,302   25,142 
Cash surrender value of life insurance 304,918   306,028 
Other real estate owned 4,966   4,886 
Tax asset, deferred and receivable 87,665   101,121 
Other assets 369,181   331,006 
TOTAL ASSETS$18,439,787  $18,317,803 
LIABILITIES   
Deposits:   
Noninterest-bearing$2,185,057  $2,338,364 
Interest-bearing 12,276,921   12,546,220 
Total Deposits 14,461,978   14,884,584 
Borrowings:   
Federal funds purchased 185,000   — 
Securities sold under repurchase agreements 122,947   130,264 
Federal Home Loan Bank advances 972,478   612,778 
Subordinated debentures and other borrowings 62,619   118,612 
Total Borrowings 1,343,044   861,654 
Interest payable 13,304   19,262 
Other liabilities 289,247   327,500 
Total Liabilities 16,107,573   16,093,000 
STOCKHOLDERS' EQUITY   
Preferred Stock, $1,000 par value, $1,000 liquidation value:   
Authorized -- 600 cumulative shares   
Issued and outstanding - 125 cumulative shares 125   125 
Preferred Stock, Series A, no par value, $2,500 liquidation preference:   
Authorized -- 10,000 non-cumulative perpetual shares   
Issued and outstanding - 10,000 non-cumulative perpetual shares 25,000   25,000 
Common Stock, $.125 stated value:   
Authorized -- 100,000,000 shares   
Issued and outstanding - 57,810,232 and 58,564,819 shares 7,226   7,321 
Additional paid-in capital 1,183,263   1,208,447 
Retained earnings 1,306,911   1,181,939 
Accumulated other comprehensive loss (190,311)  (198,029)
Total Stockholders' Equity 2,332,214   2,224,803 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$18,439,787  $18,317,803 



  
CONSOLIDATED STATEMENTS OF INCOMEThree Months Ended
(Dollars In Thousands, Except Per Share Amounts)March 31,
 2025 2024
INTEREST INCOME   
Loans:   
Taxable$187,728  $198,023 
Tax-exempt 10,532   8,190 
Investment securities:   
Taxable 8,372   8,748 
Tax-exempt 12,517   13,611 
Deposits with financial institutions 2,372   6,493 
Federal Home Loan Bank stock 997   835 
Total Interest Income 222,518   235,900 
INTEREST EXPENSE   
Deposits 80,547   98,285 
Federal funds purchased 812   — 
Securities sold under repurchase agreements 742   1,032 
Federal Home Loan Bank advances 9,364   6,773 
Subordinated debentures and other borrowings 783   2,747 
Total Interest Expense 92,248   108,837 
NET INTEREST INCOME 130,270   127,063 
Provision for credit losses 4,200   2,000 
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 126,070   125,063 
NONINTEREST INCOME   
Service charges on deposit accounts 8,072   7,907 
Fiduciary and wealth management fees 8,644   8,200 
Card payment fees 4,526   4,500 
Net gains and fees on sales of loans 5,022   3,254 
Derivative hedge fees 404   263 
Other customer fees 415   427 
Earnings on cash surrender value of life insurance 2,179   1,592 
Net realized losses on sales of available for sale securities (7)  (2)
Other income 793   497 
Total Noninterest Income 30,048   26,638 
NONINTEREST EXPENSES   
Salaries and employee benefits 54,982   58,293 
Net occupancy 7,216   7,312 
Equipment 7,008   6,226 
Marketing 1,353   1,198 
Outside data processing fees 5,929   6,889 
Printing and office supplies 347   353 
Intangible asset amortization 1,526   1,957 
FDIC assessments 3,648   4,287 
Other real estate owned and foreclosure expenses 600   534 
Professional and other outside services 3,261   3,952 
Other expenses 7,032   5,934 
Total Noninterest Expenses 92,902   96,935 
INCOME BEFORE INCOME TAX 63,216   54,766 
Income tax expense 7,877   6,825 
NET INCOME 55,339   47,941 
Preferred stock dividends 469   469 
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$54,870  $47,472 
Per Share Data:   
Basic Net Income Available to Common Stockholders$0.95  $0.80 
Diluted Net Income Available to Common Stockholders$0.94  $0.80 
Cash Dividends Paid to Common Stockholders$0.35  $0.34 
Tangible Common Book Value Per Share$27.34  $25.07 
Average Diluted Common Shares Outstanding (in thousands) 58,242   59,273 



    
FINANCIAL HIGHLIGHTS   
(Dollars in thousands)Three Months Ended
 March 31,
 2025 2024
NET CHARGE-OFFS$4,926  $2,253 
    
AVERAGE BALANCES:   
Total Assets$18,341,738  $18,430,521 
Total Loans 12,941,353   12,477,066 
Total Earning Assets 16,960,475   17,123,851 
Total Deposits 14,419,338   14,881,205 
Total Stockholders' Equity 2,340,874   2,242,139 
    
FINANCIAL RATIOS:   
Return on Average Assets 1.21%  1.04%
Return on Average Stockholders' Equity 9.38   8.47 
Return on Tangible Common Stockholders' Equity 14.12   13.21 
Average Earning Assets to Average Assets 92.47   92.91 
Allowance for Credit Losses - Loans as % of Total Loans 1.47   1.64 
Net Charge-offs as % of Average Loans (Annualized) 0.15   0.07 
Average Stockholders' Equity to Average Assets 12.76   12.17 
Tax Equivalent Yield on Average Earning Assets 5.39   5.65 
Interest Expense/Average Earning Assets 2.17   2.55 
Net Interest Margin (FTE) on Average Earning Assets 3.22   3.10 
Efficiency Ratio 54.54   59.21 



          
NONPERFORMING ASSETS         
(Dollars In Thousands)March 31, December 31, September 30, June 30, March 31,
 2025 2024 2024 2024 2024
Nonaccrual Loans$81,922  $73,773  $59,088  $61,906  $62,478 
Other Real Estate Owned and Repossessions 4,966   4,948   5,247   4,824   4,886 
Nonperforming Assets (NPA) 86,888   78,721   64,335   66,730   67,364 
90+ Days Delinquent 4,280   5,902   14,105   1,686   2,838 
NPAs & 90 Day Delinquent$91,168  $84,623  $78,440  $68,416  $70,202 
          
Allowance for Credit Losses - Loans$192,031  $192,757  $187,828  $189,537  $204,681 
Quarterly Net Charge-offs 4,926   771   6,709   39,644   2,253 
NPAs / Actual Assets % 0.47%  0.43%  0.35%  0.36%  0.37%
NPAs & 90 Day / Actual Assets % 0.49%  0.46%  0.43%  0.37%  0.38%
NPAs / Actual Loans and OREO % 0.67%  0.61%  0.51%  0.53%  0.54%
Allowance for Credit Losses - Loans / Actual Loans (%) 1.47%  1.50%  1.48%  1.50%  1.64%
Net Charge-offs as % of Average Loans (Annualized) 0.15%  0.02%  0.21%  1.26%  0.07%



          
CONSOLIDATED BALANCE SHEETS         
(Dollars In Thousands)March 31, December 31, September 30, June 30, March 31,
 2025 2024 2024 2024 2024
ASSETS         
Cash and due from banks$86,113  $87,616  $84,719  $105,372  $100,514 
Interest-bearing deposits 331,534   298,891   359,126   168,528   410,497 
Investment securities available for sale 1,378,489   1,386,475   1,553,496   1,618,893   1,620,213 
Investment securities held to maturity, net of allowance for credit losses 2,048,632   2,074,220   2,108,649   2,134,195   2,163,361 
Loans held for sale 23,004   18,663   40,652   32,292   15,118 
Loans 13,004,905   12,854,359   12,646,808   12,639,650   12,465,582 
Less: Allowance for credit losses - loans (192,031)  (192,757)  (187,828)  (189,537)  (204,681)
Net loans 12,812,874   12,661,602   12,458,980   12,450,113   12,260,901 
Premises and equipment 128,749   129,743   129,582   133,245   132,706 
Federal Home Loan Bank stock 45,006   41,690   41,716   41,738   41,758 
Interest receivable 88,352   91,829   92,055   97,546   92,550 
Goodwill 712,002   712,002   712,002   712,002   712,002 
Other intangibles 18,302   19,828   21,599   23,371   25,142 
Cash surrender value of life insurance 304,918   304,906   304,613   306,379   306,028 
Other real estate owned 4,966   4,948   5,247   4,824   4,886 
Tax asset, deferred and receivable 87,665   92,387   86,732   107,080   101,121 
Other assets 369,181   387,169   348,384   367,845   331,006 
TOTAL ASSETS$18,439,787  $18,311,969  $18,347,552  $18,303,423  $18,317,803 
LIABILITIES         
Deposits:         
Noninterest-bearing$2,185,057  $2,325,579  $2,334,197  $2,303,313  $2,338,364 
Interest-bearing 12,276,921   12,196,047   12,030,903   12,265,757   12,546,220 
Total Deposits 14,461,978   14,521,626   14,365,100   14,569,070   14,884,584 
Borrowings:         
Federal funds purchased 185,000   99,226   30,000   147,229   — 
Securities sold under repurchase agreements 122,947   142,876   124,894   100,451   130,264 
Federal Home Loan Bank advances 972,478   822,554   832,629   832,703   612,778 
Subordinated debentures and other borrowings 62,619   93,529   93,562   93,589   118,612 
Total Borrowings 1,343,044   1,158,185   1,081,085   1,173,972   861,654 
Deposits and other liabilities held for sale —   —   288,476   —   — 
Interest payable 13,304   16,102   18,089   18,554   19,262 
Other liabilities 289,247   311,073   292,429   329,302   327,500 
Total Liabilities 16,107,573   16,006,986   16,045,179   16,090,898   16,093,000 
STOCKHOLDERS' EQUITY         
Preferred Stock, $1,000 par value, $1,000 liquidation value:         
Authorized -- 600 cumulative shares         
Issued and outstanding - 125 cumulative shares 125   125   125   125   125 
Preferred Stock, Series A, no par value, $2,500 liquidation preference:         
Authorized -- 10,000 non-cumulative perpetual shares         
Issued and outstanding - 10,000 non-cumulative perpetual shares 25,000   25,000   25,000   25,000   25,000 
Common Stock, $.125 stated value:         
Authorized -- 100,000,000 shares         
Issued and outstanding 7,226   7,247   7,265   7,256   7,321 
Additional paid-in capital 1,183,263   1,188,768   1,192,683   1,191,193   1,208,447 
Retained earnings 1,306,911   1,272,528   1,229,125   1,200,930   1,181,939 
Accumulated other comprehensive loss (190,311)  (188,685)  (151,825)  (211,979)  (198,029)
Total Stockholders' Equity 2,332,214   2,304,983   2,302,373   2,212,525   2,224,803 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$18,439,787  $18,311,969  $18,347,552  $18,303,423  $18,317,803 
          



CONSOLIDATED STATEMENTS OF INCOME         
(Dollars In Thousands, Except Per Share Amounts)March 31, December 31, September 30, June 30, March 31,
 2025 2024 2024 2024 2024
INTEREST INCOME         
Loans:         
Taxable$187,728  $197,536  $206,680  $201,413  $198,023 
Tax-exempt 10,532   9,020   8,622   8,430   8,190 
Investment securities:         
Taxable 8,372   9,024   9,263   9,051   8,748 
Tax-exempt 12,517   12,754   13,509   13,613   13,611 
Deposits with financial institutions 2,372   5,350   2,154   2,995   6,493 
Federal Home Loan Bank stock 997   958   855   879   835 
Total Interest Income 222,518   234,642   241,083   236,381   235,900 
INTEREST EXPENSE         
Deposits 80,547   89,835   98,856   99,151   98,285 
Federal funds purchased 812   26   329   126   — 
Securities sold under repurchase agreements 742   680   700   645   1,032 
Federal Home Loan Bank advances 9,364   8,171   8,544   6,398   6,773 
Subordinated debentures and other borrowings 783   1,560   1,544   1,490   2,747 
Total Interest Expense 92,248   100,272   109,973   107,810   108,837 
NET INTEREST INCOME 130,270   134,370   131,110   128,571   127,063 
Provision for credit losses 4,200   4,200   5,000   24,500   2,000 
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 126,070   130,170   126,110   104,071   125,063 
NONINTEREST INCOME         
Service charges on deposit accounts 8,072   8,124   8,361   8,214   7,907 
Fiduciary and wealth management fees 8,644   8,665   8,525   8,825   8,200 
Card payment fees 4,526   4,957   5,121   4,739   4,500 
Net gains and fees on sales of loans 5,022   5,681   6,764   5,141   3,254 
Derivative hedge fees 404   1,594   736   489   263 
Other customer fees 415   316   344   460   427 
Earnings on cash surrender value of life insurance 2,179   2,188   2,755   1,929   1,592 
Net realized losses on sales of available for sale securities (7)  (11,592)  (9,114)  (49)  (2)
Gain on branch sale —   19,983   —   —   — 
Other income 793   2,826   1,374   1,586   497 
Total Noninterest Income 30,048   42,742   24,866   31,334   26,638 
NONINTEREST EXPENSES         
Salaries and employee benefits 54,982   55,437   55,223   52,214   58,293 
Net occupancy 7,216   7,335   6,994   6,746   7,312 
Equipment 7,008   7,028   6,949   6,599   6,226 
Marketing 1,353   2,582   1,836   1,773   1,198 
Outside data processing fees 5,929   6,029   7,150   7,072   6,889 
Printing and office supplies 347   377   378   354   353 
Intangible asset amortization 1,526   1,771   1,772   1,771   1,957 
FDIC assessments 3,648   3,744   3,720   3,278   4,287 
Other real estate owned and foreclosure expenses 600   227   942   373   534 
Professional and other outside services 3,261   3,777   3,035   3,822   3,952 
Other expenses 7,032   7,982   6,630   7,411   5,934 
Total Noninterest Expenses 92,902   96,289   94,629   91,413   96,935 
INCOME BEFORE INCOME TAX 63,216   76,623   56,347   43,992   54,766 
Income tax expense 7,877   12,274   7,160   4,067   6,825 
NET INCOME 55,339   64,349   49,187   39,925   47,941 
Preferred stock dividends 469   469   468   469   469 
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$54,870  $63,880  $48,719  $39,456  $47,472 
Per Share Data:         
Basic Net Income Available to Common Stockholders$0.95  $1.10  $0.84  $0.68  $0.80 
Diluted Net Income Available to Common Stockholders$0.94  $1.10  $0.84  $0.68  $0.80 
Cash Dividends Paid to Common Stockholders$0.35  $0.35  $0.35  $0.35  $0.34 
Tangible Common Book Value Per Share$27.34  $26.78  $26.64  $25.10  $25.07 
Average Diluted Common Shares Outstanding (in thousands) 58,242   58,247   58,289   58,328   59,273 
FINANCIAL RATIOS:         
Return on Average Assets 1.21%  1.39%  1.07%  0.87%  1.04%
Return on Average Stockholders' Equity 9.38   11.05   8.66   7.16   8.47 
Return on Tangible Common Stockholders' Equity 14.12   16.75   13.39   11.29   13.21 
Average Earning Assets to Average Assets 92.47   92.48   92.54   92.81   92.91 
Allowance for Credit Losses - Loans as % of Total Loans 1.47   1.50   1.48   1.50   1.64 
Net Charge-offs as % of Average Loans (Annualized) 0.15   0.02   0.21   1.26   0.07 
Average Stockholders' Equity to Average Assets 12.76   12.51   12.26   12.02   12.17 
Tax Equivalent Yield on Average Earning Assets 5.39   5.63   5.82   5.69   5.65 
Interest Expense/Average Earning Assets 2.17   2.35   2.59   2.53   2.55 
Net Interest Margin (FTE) on Average Earning Assets 3.22   3.28   3.23   3.16   3.10 
Efficiency Ratio 54.54   48.48   53.76   53.84   59.21 



          
LOANS         
(Dollars In Thousands)March 31, December 31, September 30, June 30, March 31,
 2025 2024 2024 2024 2024
Commercial and industrial loans$4,306,597  $4,114,292  $4,041,217  $3,949,817  $3,722,365 
Agricultural land, production and other loans to farmers 243,864   256,312   238,743   239,926   234,431 
Real estate loans:         
Construction 793,175   792,144   814,704   823,267   941,726 
Commercial real estate, non-owner occupied 2,177,869   2,274,016   2,251,351   2,323,533   2,368,360 
Commercial real estate, owner occupied 1,214,739   1,157,944   1,152,751   1,174,195   1,137,894 
Residential 2,389,852   2,374,729   2,366,943   2,370,905   2,316,490 
Home equity 650,499   659,811   641,188   631,104   618,258 
Individuals' loans for household and other personal expenditures 140,954   166,028   158,480   162,089   161,459 
Public finance and other commercial loans 1,087,356   1,059,083   981,431   964,814   964,599 
Loans 13,004,905   12,854,359   12,646,808   12,639,650   12,465,582 
Allowance for credit losses - loans (192,031)  (192,757)  (187,828)  (189,537)  (204,681)
NET LOANS$12,812,874  $12,661,602  $12,458,980  $12,450,113  $12,260,901 



DEPOSITS         
(Dollars In Thousands)March 31, December 31, September 30, June 30, March 31,
 2025 2024 2024 2024 2024
Demand deposits$7,786,554 $7,980,061 $7,678,510 $7,757,679 $7,771,976
Savings deposits 4,791,874  4,522,758  4,302,236  4,339,161  4,679,593
Certificates and other time deposits of $100,000 or more 896,143  1,043,068  1,277,833  1,415,131  1,451,443
Certificates and other time deposits of $100,000 or less 625,203  692,068  802,949  889,949  901,280
Brokered certificates of deposits1 362,204  283,671  303,572  167,150  80,292
TOTAL DEPOSITS$14,461,978 $14,521,626 $14,365,100 $14,569,070 $14,884,584
 
1 - Total brokered deposits of $1.1 billion, which includes brokered CD's of $362.2 million at March 31, 2025.



       
CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS      
(Dollars in Thousands)           
 For the Three Months Ended
 March 31, 2025 March 31, 2024
 Average

Balance		 Interest

 Income /

Expense		 Average

Rate		 Average

Balance		 Interest

 Income /

Expense		 Average

Rate
ASSETS           
Interest-bearing deposits$294,016 $2,372 3.23% $575,699 $6,493 4.51%
Federal Home Loan Bank stock 43,980  997 9.07   41,764  835 8.00 
Investment Securities: (1)           
Taxable 1,634,452  8,372 2.05   1,783,057  8,748 1.96 
Tax-exempt (2) 2,046,674  15,844 3.10   2,246,265  17,229 3.07 
Total Investment Securities 3,681,126  24,216 2.63   4,029,322  25,977 2.58 
Loans held for sale 20,965  319 6.09   21,782  328 6.02 
Loans: (3)           
Commercial 8,770,282  147,772 6.74   8,598,110  159,209 7.41 
Real estate mortgage 2,191,384  24,446 4.46   2,130,947  22,357 4.20 
HELOC and installment 828,874  15,191 7.33   821,815  16,129 7.85 
Tax-exempt (2) 1,129,848  13,332 4.72   904,412  10,367 4.59 
Total Loans 12,941,353  201,060 6.21   12,477,066  208,390 6.68 
Total Earning Assets 16,960,475  228,645 5.39%  17,123,851  241,695 5.65%
Total Non-Earning Assets 1,381,263      1,306,670    
TOTAL ASSETS$18,341,738     $18,430,521    
LIABILITIES           
Interest-Bearing Deposits:           
Interest-bearing deposits$5,522,434 $34,606 2.51% $5,419,821 $39,491 2.91%
Money market deposits 3,437,998  25,952 3.02   3,045,478  27,383 3.60 
Savings deposits 1,299,405  2,445 0.75   1,559,877  3,801 0.97 
Certificates and other time deposits 1,947,854  17,544 3.60   2,427,859  27,610 4.55 
Total Interest-Bearing Deposits 12,207,691  80,547 2.64   12,453,035  98,285 3.16 
Borrowings 1,262,926  11,701 3.71   1,011,812  10,552 4.17 
Total Interest-Bearing Liabilities 13,470,617  92,248 2.74   13,464,847  108,837 3.23 
Noninterest-bearing deposits 2,211,647      2,428,170    
Other liabilities 318,600      295,365    
Total Liabilities 16,000,864      16,188,382    
STOCKHOLDERS' EQUITY 2,340,874      2,242,139    
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$18,341,738  92,248   $18,430,521  108,837  
Net Interest Income (FTE)  $136,397     $132,858  
Net Interest Spread (FTE) (4)    2.65%     2.42%
            
Net Interest Margin (FTE):           
Interest Income (FTE) / Average Earning Assets    5.39%     5.65%
Interest Expense / Average Earning Assets    2.17%     2.55%
Net Interest Margin (FTE) (5)    3.22%     3.10%
            
(1) Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
(2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2024 and 2023. These totals equal $6,127 and $5,795 for the three months ended March 31, 2025 and 2024, respectively.
(3) Non accruing loans have been included in the average balances.
(4) Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
(5) Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.



 
ADJUSTED NET INCOME AND DILUTED EARNINGS PER COMMON SHARE - NON-GAAP
(Dollars In Thousands, Except Per Share Amounts)Three Months Ended
 March 31, December 31, September 30, June 30, March 31,
 2025 2024 2024 2024 2024
Net Income Available to Common Stockholders - GAAP$54,870  $63,880  $48,719  $39,456  $47,472 
Adjustments:         
Net realized losses on sales of available for sale securities 7   11,592   9,114   49   2 
Gain on branch sale —   (19,983)  —   —   — 
Non-core expenses1,2 —   762   —   —   3,481 
Tax on adjustments (2)  1,851   (2,220)  (12)  (848)
Adjusted Net Income Available to Common Stockholders - Non-GAAP$54,875  $58,102  $55,613  $39,493  $50,107 
          
Average Diluted Common Shares Outstanding (in thousands) 58,242   58,247   58,289   58,328   59,273 
          
Diluted Earnings Per Common Share - GAAP$0.94  $1.10  $0.84  $0.68  $0.80 
Adjustments:         
Net realized losses on sales of available for sale securities —   0.20   0.15   —   — 
Gain on branch sale —   (0.34)  —   —   — 
Non-core expenses1,2 —   0.01   —   —   0.06 
Tax on adjustments —   0.03   (0.04)  —   (0.01)
Adjusted Diluted Earnings Per Common Share - Non-GAAP$0.94  $1.00  $0.95  $0.68  $0.85 
 
1 - Non-core expenses in 4Q24 included $0.8 million of costs directly related to the branch sale.
2 - Non-core expenses in 1Q24 included $2.4 million from duplicative online banking conversion costs and $1.1 million from the FDIC special assessment.



     
NET INTEREST MARGIN ("NIM"), ADJUSTED
(Dollars in Thousands)
 Three Months Ended
 March 31, December 31, September 30, June 30, March 31,
 2025 2024 2024 2024 2024
Net Interest Income (GAAP)$130,270  $134,370  $131,110  $128,571  $127,063 
Fully Taxable Equivalent ("FTE") Adjustment 6,127   5,788   5,883   5,859   5,795 
Net Interest Income (FTE) (non-GAAP)$136,397  $140,158  $136,993  $134,430  $132,858 
          
Average Earning Assets (GAAP)$16,960,475  $17,089,198  $16,990,358  $17,013,984  $17,123,851 
Net Interest Margin (GAAP) 3.07%  3.15%  3.09%  3.02%  2.97%
Net Interest Margin (FTE) (non-GAAP) 3.22%  3.28%  3.23%  3.16%  3.10%



RETURN ON TANGIBLE COMMON EQUITY - NON-GAAP
(Dollars In Thousands)Three Months Ended
 March 31, December 31, September 30, June 30, March 31,
 2025 2024 2024 2024 2024
Total Average Stockholders' Equity (GAAP)$2,340,874  $2,312,270  $2,251,547  $2,203,361  $2,242,139 
Less: Average Preferred Stock (25,125)  (25,125)  (25,125)  (25,125)  (25,125)
Less: Average Intangible Assets, Net of Tax (726,917)  (728,218)  (729,581)  (730,980)  (732,432)
Average Tangible Common Equity, Net of Tax (Non-GAAP)$1,588,832  $1,558,927  $1,496,841  $1,447,256  $1,484,582 
          
Net Income Available to Common Stockholders (GAAP)$54,870  $63,880  $48,719  $39,456  $47,472 
Plus: Intangible Asset Amortization, Net of Tax 1,206   1,399   1,399   1,399   1,546 
Tangible Net Income (Non-GAAP)$56,076  $65,279  $50,118  $40,855  $49,018 
          
Return on Tangible Common Equity (Non-GAAP) 14.12%  16.75%  13.39%  11.29%  13.21%



EFFICIENCY RATIO - NON-GAAP         
(Dollars In Thousands)Three Months Ended
 March 31, December 31, September 30, June 30, March 31,
 2025 2024 2024 2024 2024
Non Interest Expense (GAAP)$92,902  $96,289  $94,629  $91,413  $96,935 
Less: Intangible Asset Amortization (1,526)  (1,771)  (1,772)  (1,771)  (1,957)
Less: OREO and Foreclosure Expenses (600)  (227)  (942)  (373)  (534)
Adjusted Non Interest Expense (Non-GAAP)$90,776  $94,291  $91,915  $89,269  $94,444 
          
Net Interest Income (GAAP)$130,270  $134,370  $131,110  $128,571  $127,063 
Plus: Fully Taxable Equivalent Adjustment 6,127   5,788   5,883   5,859   5,795 
Net Interest Income on a Fully Taxable Equivalent Basis (Non-GAAP)$136,397  $140,158  $136,993  $134,430  $132,858 
          
Non Interest Income (GAAP)$30,048  $42,742  $24,866  $31,334  $26,638 
Less: Investment Securities (Gains) Losses 7   11,592   9,114   49   2 
Adjusted Non Interest Income (Non-GAAP)$30,055  $54,334  $33,980  $31,383  $26,640 
Adjusted Revenue (Non-GAAP)$166,452  $194,492  $170,973  $165,813  $159,498 
Efficiency Ratio (Non-GAAP) 54.54%  48.48%  53.76%  53.84%  59.21%
          
Adjusted Non Interest Expense (Non-GAAP)$90,776  $94,291  $91,915  $89,269  $94,444 
Less: Non-core Expenses1,2 —   (762)  —   —   (3,481)
Adjusted Non Interest Expense Excluding Non-core Expenses (Non-GAAP)$90,776  $93,529  $91,915  $89,269  $90,963 
          
Adjusted Revenue (Non-GAAP)$166,452  $194,492  $170,973  $165,813  $159,498 
Less: Gain on Branch Sale —   (19,983)  —   —   — 
Adjusted Revenue Excluding Gain on Branch Sale (Non-GAAP)$166,452  $174,509  $170,973  $165,813  $159,498 
Adjusted Efficiency Ratio (Non-GAAP) 54.54%  53.60%  53.76%  53.84%  57.03%
1 - Non-core expenses in 4Q24 included $0.8 million of costs directly related to the branch sale.
2 - Non-core expenses in 1Q24 included $2.4 million from duplicative online banking conversion costs and $1.1 million from the FDIC special assessment.
 

For more information, contact:

Nicole M. Weaver, Vice President and Director of Corporate Administration

765-521-7619

SOURCE: First Merchants Corporation, Muncie, Indiana



EN
24/04/2025

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