FRME First Merchants Corporation

First Merchants Corporation Announces Second Quarter 2025 Earnings Per Share

First Merchants Corporation Announces Second Quarter 2025 Earnings Per Share

MUNCIE, Ind., July 23, 2025 (GLOBE NEWSWIRE) -- First Merchants Corporation (NASDAQ - FRME)

Second Quarter 2025 Highlights:

  • Net income available to common stockholders was $56.4 million and diluted earnings per common share totaled $0.98 in the second quarter of 2025, compared to $39.5 million and $0.68 in the second quarter of 2024, and $54.9 million and $0.94 in the first quarter of 2025.
  • Robust capital position with Common Equity Tier 1 Capital Ratio of 11.35%.
  • Repurchased 818,480 shares totaling $31.7 million year-to-date; Repurchased 582,486 shares totaling $22.1 million during the second quarter.
  • Total loans grew $297.6 million, or 9.1% annualized, on a linked quarter basis, and $653.6 million, or 5.2%, during the last twelve months.
  • Total deposits increased $335.6 million, or 9.3% annualized, on a linked quarter basis.
  • Nonperforming assets to total assets were 36 basis points compared to 47 basis points on a linked quarter basis.
  • The efficiency ratio totaled 53.99% for the quarter.



"Our strong balance sheet and earnings growth in the first half of the year underscore the strength and resilience of our business model," said Mark Hardwick, Chief Executive Officer of First Merchants Bank. "With continued momentum in loan and deposit growth, expanding margins, disciplined expense management, and a robust capital position, we are well-positioned to deliver long-term value for our shareholders. We remain committed to supporting our clients and communities while navigating a dynamic economic environment with confidence and clarity."

Second Quarter Financial Results:

First Merchants Corporation (the “Corporation) reported second quarter 2025 net income available to common stockholders of $56.4 million compared to $39.5 million during the same period in 2024. Diluted earnings per common share for the period totaled $0.98 per share compared to the second quarter of 2024 result of $0.68 per share.

Total assets equaled $18.6 billion as of quarter-end and loans totaled $13.3 billion. During the past twelve months, total loans grew by $653.6 million, or 5.2%. On a linked quarter basis, loans grew $297.6 million, or 9.1% with growth primarily in Commercial & Industrial loans.

Investments, totaling $3.4 billion, decreased $372.1 million, or 9.9%, during the last twelve months and decreased $46.2 million, or 5.4% 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 $14.8 billion as of quarter-end and increased by $228.5 million, or 1.6%, over the past twelve months. Total deposits increased $335.6 million, or 9.3% annualized, on a linked quarter basis. The loan to deposit ratio of 90.1% at period end remained stable on a linked quarter basis.

The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $195.3 million as of quarter-end, or 1.47% of total loans. Net charge-offs totaled $2.3 million and provision for credit losses of $5.6 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 0.36% for the second quarter of 2025, a decrease of 11 basis points compared to 0.47% in the linked quarter.

Net interest income, totaling $133.0 million for the quarter, increased $2.7 million, or 2.1%, compared to prior quarter and increased $4.4 million, or 3.5% compared to the second quarter of 2024. Fully taxable equivalent net interest margin was 3.25%, an increase of three basis points compared to the first quarter of 2025 and an increase of nine basis points compared to the second quarter of 2024. During the quarter, higher yields on earnings assets outpaced increased yields on interest bearing liabilities resulting in margin expansion.

Noninterest income totaled $31.3 million for the quarter, an increase of $1.3 million, compared to the first quarter of 2025 and was stable compared to the second quarter of 2024. The increase over first quarter of 2025 was driven primarily by higher gains on the sales of loans, treasury management fees, derivative hedge fees, and card payment fees offset by a decrease in other income associated with CRA investments.

Noninterest expense totaled $93.6 million for the quarter, an increase of $0.7 million from the first quarter of 2025. The increase was from higher marketing and data processing costs.

The Corporation’s total risk-based capital ratio equaled 13.06%, the common equity tier 1 capital ratio equaled 11.35%, and the tangible common equity ratio totaled 8.92%. These ratios continue to reflect the Corporation’s strong liquidity and capital positions.

CONFERENCE CALL

First Merchants Corporation will conduct a second quarter earnings conference call and web cast at 9:00 a.m. (ET) on Thursday, July 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 July 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 statements, 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)June 30,
  2025   2024 
ASSETS   
Cash and due from banks$81,567  $105,372 
Interest-bearing deposits 223,343   168,528 
Investment securities available for sale 1,358,130   1,618,893 
Investment securities held to maturity, net of allowance for credit losses 2,022,826   2,134,195 
Loans held for sale 28,783   32,292 
Loans 13,296,759   12,639,650 
Less: Allowance for credit losses - loans (195,316)  (189,537)
Net loans 13,101,443   12,450,113 
Premises and equipment 122,808   133,245 
Federal Home Loan Bank stock 47,290   41,738 
Interest receivable 93,258   97,546 
Goodwill 712,002   712,002 
Other intangibles 16,797   23,371 
Cash surrender value of life insurance 305,695   306,379 
Other real estate owned 177   4,824 
Tax asset, deferred and receivable 97,749   107,080 
Other assets 380,909   367,845 
TOTAL ASSETS$18,592,777  $18,303,423 
LIABILITIES   
Deposits:   
Noninterest-bearing$2,197,416  $2,303,313 
Interest-bearing 12,600,162   12,265,757 
Total Deposits 14,797,578   14,569,070 
Borrowings:   
Federal funds purchased 85,000   147,229 
Securities sold under repurchase agreements 114,758   100,451 
Federal Home Loan Bank advances 898,702   832,703 
Subordinated debentures and other borrowings 62,617   93,589 
Total Borrowings 1,161,077   1,173,972 
Interest payable 16,174   18,554 
Other liabilities 269,996   329,302 
Total Liabilities 16,244,825   16,090,898 
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 - 57,272,433 and 58,045,653 shares 7,159   7,256 
Additional paid-in capital 1,163,170   1,191,193 
Retained earnings 1,342,473   1,200,930 
Accumulated other comprehensive loss (189,975)  (211,979)
Total Stockholders' Equity 2,347,952   2,212,525 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$18,592,777  $18,303,423 
    



CONSOLIDATED STATEMENTS OF INCOMEThree Months Ended Six Months Ended
(Dollars In Thousands, Except Per Share Amounts)June 30, June 30,
  2025   2024   2025   2024 
INTEREST INCOME       
Loans:       
Taxable$195,173  $201,413  $382,901  $399,436 
Tax-exempt 10,805   8,430   21,337   16,620 
Investment securities:       
Taxable 8,266   9,051   16,638   17,799 
Tax-exempt 12,516   13,613   25,033   27,224 
Deposits with financial institutions 1,892   2,995   4,264   9,488 
Federal Home Loan Bank stock 1,083   879   2,080   1,714 
Total Interest Income 229,735   236,381   452,253   472,281 
INTEREST EXPENSE       
Deposits 84,241   99,151   164,788   197,436 
Federal funds purchased 965   126   1,777   126 
Securities sold under repurchase agreements 663   645   1,405   1,677 
Federal Home Loan Bank advances 9,714   6,398   19,078   13,171 
Subordinated debentures and other borrowings 1,138   1,490   1,921   4,237 
Total Interest Expense 96,721   107,810   188,969   216,647 
NET INTEREST INCOME 133,014   128,571   263,284   255,634 
Provision for credit losses 5,600   24,500   9,800   26,500 
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 127,414   104,071   253,484   229,134 
NONINTEREST INCOME       
Service charges on deposit accounts 8,566   8,214   16,638   16,121 
Fiduciary and wealth management fees 8,831   8,825   17,475   17,025 
Card payment fees 4,932   4,739   9,458   9,239 
Net gains and fees on sales of loans 5,849   5,141   10,871   8,395 
Derivative hedge fees 831   489   1,235   752 
Other customer fees 401   460   816   887 
Earnings on cash surrender value of life insurance 1,913   1,929   4,092   3,521 
Net realized losses on sales of available for sale securities (1)  (49)  (8)  (51)
Other income (loss) (19)  1,586   774   2,083 
Total Noninterest Income 31,303   31,334   61,351   57,972 
NONINTEREST EXPENSES       
Salaries and employee benefits 54,527   52,214   109,509   110,507 
Net occupancy 6,845   6,746   14,061   14,058 
Equipment 6,927   6,599   13,935   12,825 
Marketing 1,997   1,773   3,350   2,971 
Outside data processing fees 7,107   7,072   13,036   13,961 
Printing and office supplies 272   354   619   707 
Intangible asset amortization 1,505   1,771   3,031   3,728 
FDIC assessments 3,552   3,278   7,200   7,565 
Other real estate owned and foreclosure expenses 29   373   629   907 
Professional and other outside services 3,741   3,822   7,002   7,774 
Other expenses 7,096   7,411   14,128   13,345 
Total Noninterest Expenses 93,598   91,413   186,500   188,348 
INCOME BEFORE INCOME TAX 65,119   43,992   128,335   98,758 
Income tax expense 8,287   4,067   16,164   10,892 
NET INCOME 56,832   39,925   112,171   87,866 
Preferred stock dividends 469   469   938   938 
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$56,363  $39,456  $111,233  $86,928 
        
        
PER SHARE DATA:       
Basic Net Income Available to Common Stockholders$0.98  $0.68  $1.93  $1.48 
Diluted Net Income Available to Common Stockholders$0.98  $0.68  $1.92  $1.48 
Cash Dividends Paid to Common Stockholders$0.36  $0.35  $0.71  $0.69 
Tangible Common Book Value Per Share$27.90  $25.10  $27.90  $25.10 
Average Diluted Common Shares Outstanding (in thousands) 57,773   58,328   58,005   58,800 
                



FINANCIAL HIGHLIGHTS       
(Dollars In Thousands)Three Months Ended Six Months Ended
 June 30, June 30,
  2025  2024  2025  2024
NET CHARGE-OFFS$2,315   $39,644   $7,241   $41,897  
        
AVERAGE BALANCES:       
Total Assets$18,508,785   $18,332,159   $18,425,723   $18,381,340  
Total Loans 13,211,729    12,620,530    13,077,288    12,548,798  
Total Earning Assets 17,158,984    17,013,984    17,060,278    17,068,917  
Total Deposits 14,632,113    14,895,867    14,526,314    14,888,536  
Total Stockholders' Equity 2,340,010    2,203,361    2,340,440    2,222,750  
        
FINANCIAL RATIOS:       
Return on Average Assets 1.23 %  0.87 %  1.22 %  0.96 %
Return on Average Stockholders' Equity 9.63    7.16    9.51    7.82  
Return on Tangible Common Stockholders' Equity 14.49    11.29    14.30    12.26  
Average Earning Assets to Average Assets 92.71    92.81    92.59    92.86  
Allowance for Credit Losses - Loans as % of Total Loans 1.47    1.50    1.47    1.50  
Net Charge-offs as % of Average Loans (Annualized) 0.07    1.26    0.11    0.67  
Average Stockholders' Equity to Average Assets 12.64    12.02    12.70    12.09  
Tax Equivalent Yield on Average Earning Assets 5.50    5.69    5.45    5.67  
Interest Expense/Average Earning Assets 2.25    2.53    2.22    2.54  
Net Interest Margin (FTE) on Average Earning Assets 3.25    3.16    3.23    3.13  
Efficiency Ratio 53.99    53.84    54.26    56.47  
        



ASSET QUALITY         
(Dollars In Thousands)June 30, March 31, December 31, September 30, June 30,
  2025  2025  2024  2024  2024
Nonaccrual Loans$67,358   $81,922   $73,773   $59,088   $61,906  
Other Real Estate Owned and Repossessions 177    4,966    4,948    5,247    4,824  
Nonperforming Assets (NPA) 67,535    86,888    78,721    64,335    66,730  
90+ Days Delinquent 4,443    4,280    5,902    14,105    1,686  
NPAs & 90 Day Delinquent$71,978   $91,168   $84,623   $78,440   $68,416  
          
Allowance for Credit Losses - Loans$195,316   $192,031   $192,757   $187,828   $189,537  
Quarterly Net Charge-offs 2,315    4,926    771    6,709    39,644  
NPAs / Actual Assets % 0.36 %  0.47 %  0.43 %  0.35 %  0.36 %
NPAs & 90 Day / Actual Assets % 0.39 %  0.49 %  0.46 %  0.43 %  0.37 %
NPAs / Actual Loans and OREO % 0.51 %  0.67 %  0.61 %  0.51 %  0.53 %
Allowance for Credit Losses - Loans / Actual Loans (%) 1.47 %  1.47 %  1.50 %  1.48 %  1.50 %
Quarterly Net Charge-offs as % of Average Loans (Annualized) 0.07 %  0.15 %  0.02 %  0.21 %  1.26 %



CONSOLIDATED BALANCE SHEETS         
(Dollars In Thousands)June 30, March 31, December 31, September 30, June 30,
  2025   2025   2024   2024   2024 
ASSETS         
Cash and due from banks$81,567  $86,113  $87,616  $84,719  $105,372 
Interest-bearing deposits 223,343   331,534   298,891   359,126   168,528 
Investment securities available for sale 1,358,130   1,378,489   1,386,475   1,553,496   1,618,893 
Investment securities held to maturity, net of allowance for credit losses 2,022,826   2,048,632   2,074,220   2,108,649   2,134,195 
Loans held for sale 28,783   23,004   18,663   40,652   32,292 
Loans 13,296,759   13,004,905   12,854,359   12,646,808   12,639,650 
Less: Allowance for credit losses - loans (195,316)  (192,031)  (192,757)  (187,828)  (189,537)
Net loans 13,101,443   12,812,874   12,661,602   12,458,980   12,450,113 
Premises and equipment 122,808   128,749   129,743   129,582   133,245 
Federal Home Loan Bank stock 47,290   45,006   41,690   41,716   41,738 
Interest receivable 93,258   88,352   91,829   92,055   97,546 
Goodwill 712,002   712,002   712,002   712,002   712,002 
Other intangibles 16,797   18,302   19,828   21,599   23,371 
Cash surrender value of life insurance 305,695   304,918   304,906   304,613   306,379 
Other real estate owned 177   4,966   4,948   5,247   4,824 
Tax asset, deferred and receivable 97,749   87,665   92,387   86,732   107,080 
Other assets 380,909   369,181   387,169   348,384   367,845 
TOTAL ASSETS$18,592,777  $18,439,787  $18,311,969  $18,347,552  $18,303,423 
LIABILITIES         
Deposits:         
Noninterest-bearing$2,197,416  $2,185,057  $2,325,579  $2,334,197  $2,303,313 
Interest-bearing 12,600,162   12,276,921   12,196,047   12,030,903   12,265,757 
Total Deposits 14,797,578   14,461,978   14,521,626   14,365,100   14,569,070 
Borrowings:         
Federal funds purchased 85,000   185,000   99,226   30,000   147,229 
Securities sold under repurchase agreements 114,758   122,947   142,876   124,894   100,451 
Federal Home Loan Bank advances 898,702   972,478   822,554   832,629   832,703 
Subordinated debentures and other borrowings 62,617   62,619   93,529   93,562   93,589 
Total Borrowings 1,161,077   1,343,044   1,158,185   1,081,085   1,173,972 
Deposits and other liabilities held for sale —   —   —   288,476   — 
Interest payable 16,174   13,304   16,102   18,089   18,554 
Other liabilities 269,996   289,247   311,073   292,429   329,302 
Total Liabilities 16,244,825   16,107,573   16,006,986   16,045,179   16,090,898 
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 7,159   7,226   7,247   7,265   7,256 
Additional paid-in capital 1,163,170   1,183,263   1,188,768   1,192,683   1,191,193 
Retained earnings 1,342,473   1,306,911   1,272,528   1,229,125   1,200,930 
Accumulated other comprehensive loss (189,975)  (190,311)  (188,685)  (151,825)  (211,979)
Total Stockholders' Equity 2,347,952   2,332,214   2,304,983   2,302,373   2,212,525 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$18,592,777  $18,439,787  $18,311,969  $18,347,552  $18,303,423 
          



CONSOLIDATED STATEMENTS OF INCOME         
(Dollars In Thousands, Except Per Share Amounts)June 30, March 31, December 31, September 30, June 30,
  2025  2025  2024  2024  2024
INTEREST INCOME         
Loans:         
Taxable$195,173   $187,728   $197,536   $206,680   $201,413  
Tax-exempt 10,805    10,532    9,020    8,622    8,430  
Investment securities:         
Taxable 8,266    8,372    9,024    9,263    9,051  
Tax-exempt 12,516    12,517    12,754    13,509    13,613  
Deposits with financial institutions 1,892    2,372    5,350    2,154    2,995  
Federal Home Loan Bank stock 1,083    997    958    855    879  
Total Interest Income 229,735    222,518    234,642    241,083    236,381  
INTEREST EXPENSE         
Deposits 84,241    80,547    89,835    98,856    99,151  
Federal funds purchased 965    812    26    329    126  
Securities sold under repurchase agreements 663    742    680    700    645  
Federal Home Loan Bank advances 9,714    9,364    8,171    8,544    6,398  
Subordinated debentures and other borrowings 1,138    783    1,560    1,544    1,490  
Total Interest Expense 96,721    92,248    100,272    109,973    107,810  
NET INTEREST INCOME 133,014    130,270    134,370    131,110    128,571  
Provision for credit losses 5,600    4,200    4,200    5,000    24,500  
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 127,414    126,070    130,170    126,110    104,071  
NONINTEREST INCOME         
Service charges on deposit accounts 8,566    8,072    8,124    8,361    8,214  
Fiduciary and wealth management fees 8,831    8,644    8,665    8,525    8,825  
Card payment fees 4,932    4,526    4,957    5,121    4,739  
Net gains and fees on sales of loans 5,849    5,022    5,681    6,764    5,141  
Derivative hedge fees 831    404    1,594    736    489  
Other customer fees 401    415    316    344    460  
Earnings on cash surrender value of life insurance 1,913    2,179    2,188    2,755    1,929  
Net realized losses on sales of available for sale securities (1)   (7)   (11,592)   (9,114)   (49) 
Gain on branch sale —    —    19,983    —    —  
Other income (loss) (19)   793    2,826    1,374    1,586  
Total Noninterest Income 31,303    30,048    42,742    24,866    31,334  
NONINTEREST EXPENSES         
Salaries and employee benefits 54,527    54,982    55,437    55,223    52,214  
Net occupancy 6,845    7,216    7,335    6,994    6,746  
Equipment 6,927    7,008    7,028    6,949    6,599  
Marketing 1,997    1,353    2,582    1,836    1,773  
Outside data processing fees 7,107    5,929    6,029    7,150    7,072  
Printing and office supplies 272    347    377    378    354  
Intangible asset amortization 1,505    1,526    1,771    1,772    1,771  
FDIC assessments 3,552    3,648    3,744    3,720    3,278  
Other real estate owned and foreclosure expenses 29    600    227    942    373  
Professional and other outside services 3,741    3,261    3,777    3,035    3,822  
Other expenses 7,096    7,032    7,982    6,630    7,411  
Total Noninterest Expenses 93,598    92,902    96,289    94,629    91,413  
INCOME BEFORE INCOME TAX 65,119    63,216    76,623    56,347    43,992  
Income tax expense 8,287    7,877    12,274    7,160    4,067  
NET INCOME 56,832    55,339    64,349    49,187    39,925  
Preferred stock dividends 469    469    469    468    469  
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$56,363   $54,870   $63,880   $48,719   $39,456  
          
          
PER SHARE DATA:         
Basic Net Income Available to Common Stockholders$0.98   $0.95   $1.10   $0.84   $0.68  
Diluted Net Income Available to Common Stockholders$0.98   $0.94   $1.10   $0.84   $0.68  
Cash Dividends Paid to Common Stockholders$0.36   $0.35   $0.35   $0.35   $0.35  
Tangible Common Book Value Per Share$27.90   $27.34   $26.78   $26.64   $25.10  
Average Diluted Common Shares Outstanding (in thousands) 57,773    58,242    58,247    58,289    58,328  
FINANCIAL RATIOS:         
Return on Average Assets 1.23 %  1.21 %  1.39 %  1.07 %  0.87 %
Return on Average Stockholders' Equity 9.63    9.38    11.05    8.66    7.16  
Return on Tangible Common Stockholders' Equity 14.49    14.12    16.75    13.39    11.29  
Average Earning Assets to Average Assets 92.71    92.47    92.48    92.54    92.81  
Allowance for Credit Losses - Loans as % of Total Loans 1.47    1.47    1.50    1.48    1.50  
Net Charge-offs as % of Average Loans (Annualized) 0.07    0.15    0.02    0.21    1.26  
Average Stockholders' Equity to Average Assets 12.64    12.76    12.51    12.26    12.02  
Tax Equivalent Yield on Average Earning Assets 5.50    5.39    5.63    5.82    5.69  
Interest Expense/Average Earning Assets 2.25    2.17    2.35    2.59    2.53  
Net Interest Margin (FTE) on Average Earning Assets 3.25    3.22    3.28    3.23    3.16  
Efficiency Ratio 53.99    54.54    48.48    53.76    53.84  



LOANS         
(Dollars In Thousands)June 30, March 31, December 31, September 30, June 30,
  2025   2025   2024   2024   2024 
Commercial and industrial loans$4,440,924  $4,306,597  $4,114,292  $4,041,217  $3,949,817 
Agricultural land, production and other loans to farmers 265,172   243,864   256,312   238,743   239,926 
Real estate loans:         
Construction 836,033   793,175   792,144   814,704   823,267 
Commercial real estate, non-owner occupied 2,171,092   2,177,869   2,274,016   2,251,351   2,323,533 
Commercial real estate, owner occupied 1,226,797   1,214,739   1,157,944   1,152,751   1,174,195 
Residential 2,397,094   2,389,852   2,374,729   2,366,943   2,370,905 
Home equity 673,961   650,499   659,811   641,188   631,104 
Individuals' loans for household and other personal expenditures 141,045   140,954   166,028   158,480   162,089 
Public finance and other commercial loans 1,144,641   1,087,356   1,059,083   981,431   964,814 
Loans 13,296,759   13,004,905   12,854,359   12,646,808   12,639,650 
Allowance for credit losses - loans (195,316)  (192,031)  (192,757)  (187,828)  (189,537)
NET LOANS$13,101,443  $12,812,874  $12,661,602  $12,458,980  $12,450,113 
          
          
DEPOSITS         
(Dollars In Thousands)June 30, March 31, December 31, September 30, June 30,
  2025   2025   2024   2024   2024 
Demand deposits$7,798,695  $7,786,554  $7,980,061  $7,678,510  $7,757,679 
Savings deposits 4,984,659   4,791,874   4,522,758   4,302,236   4,339,161 
Certificates and other time deposits of $100,000 or less 617,857   625,203   692,068   802,949   889,949 
Certificates and other time deposits of $100,000 or more 891,139   896,143   1,043,068   1,277,833   1,415,131 
Brokered certificates of deposits1 505,228   362,204   283,671   303,572   167,150 
TOTAL DEPOSITS$14,797,578  $14,461,978  $14,521,626  $14,365,100  $14,569,070 
          
1 - Total brokered deposits of $1.2 billion, which includes brokered CD's of $505.2 million at June 30, 2025.
          



CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars In Thousands)           
 Three Months Ended
 June 30, 2025 June 30, 2024
 Average

Balance		 Interest

Income /

Expense		 Average

Rate 		 Average

Balance		 Interest

Income /

Expense		 Average

Rate
ASSETS           
Interest-bearing deposits$252,613  $1,892  3.00 % $322,647  $2,995  3.71 %
Federal Home Loan Bank stock 46,598   1,083  9.30    41,749   879  8.42  
Investment Securities: (1)           
Taxable 1,605,718   8,266  2.06    1,788,749   9,051  2.02  
Tax-exempt (2) 2,042,326   15,843  3.10    2,240,309   17,232  3.08  
Total Investment Securities 3,648,044   24,109  2.64    4,029,058   26,283  2.61  
Loans held for sale 25,411   389  6.12    28,585   431  6.03  
Loans: (3)           
Commercial 9,006,650   154,108  6.84    8,691,746   160,848  7.40  
Real estate mortgage 2,200,521   25,062  4.56    2,150,591   23,799  4.43  
HELOC and installment 834,901   15,614  7.48    823,417   16,335  7.94  
Tax-exempt (2) 1,144,246   13,677  4.78    926,191   10,670  4.61  
Total Loans 13,211,729   208,850  6.32    12,620,530   212,083  6.72  
Total Earning Assets 17,158,984   235,934  5.50 %  17,013,984   242,240  5.69 %
Total Non-Earning Assets 1,349,801       1,318,175     
TOTAL ASSETS$18,508,785      $18,332,159     
LIABILITIES           
Interest-Bearing Deposits:           
Interest-bearing deposits$5,545,158  $35,303  2.55 % $5,586,549  $40,994  2.94 %
Money market deposits 3,613,952   28,714  3.18    3,036,398   27,230  3.59  
Savings deposits 1,282,951   2,513  0.78    1,508,734   3,476  0.92  
Certificates and other time deposits 2,003,682   17,711  3.54    2,414,967   27,451  4.55  
Total Interest-Bearing Deposits 12,445,743   84,241  2.71    12,546,648   99,151  3.16  
Borrowings 1,250,519   12,480  3.99    885,919   8,659  3.91  
Total Interest-Bearing Liabilities 13,696,262   96,721  2.82    13,432,567   107,810  3.21  
Noninterest-bearing deposits 2,186,370       2,349,219     
Other liabilities 286,143       347,012     
Total Liabilities 16,168,775       16,128,798     
STOCKHOLDERS' EQUITY 2,340,010       2,203,361     
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$18,508,785      $18,332,159     
Net Interest Income (FTE)  $139,213      $134,430   
Net Interest Spread (FTE) (4)    2.68 %     2.48 %
            
Net Interest Margin (FTE):           
Interest Income (FTE) / Average Earning Assets    5.50 %     5.69 %
Interest Expense / Average Earning Assets    2.25 %     2.53 %
Net Interest Margin (FTE) (5)    3.25 %     3.16 %
            
(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 2025 and 2024. These totals equal $6,199 and $5,859 for the three months ended June 30, 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.
 



CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars In Thousands)           
 Six Months Ended
 June 30, 2025 June 30, 2024
 Average

Balance		 Interest

Income /

Expense		 Average

Rate		 Average

Balance		 Interest

Income /

Expense		 Average

Rate
ASSETS           
Interest-bearing deposits$273,200  $4,264  3.12 % $449,173  $9,488  4.22 %
Federal Home Loan Bank stock 45,296   2,080  9.18    41,757   1,714  8.21  
Investment Securities: (1)           
Taxable 1,620,005   16,638  2.05    1,785,903   17,799  1.99  
Tax-exempt (2) 2,044,489   31,687  3.10    2,243,286   34,461  3.07  
Total Investment Securities 3,664,494   48,325  2.64    4,029,189   52,260  2.59  
Loans held for sale 23,190   708  6.11    25,184   759  6.03  
Loans: (3)           
Commercial 8,889,119   301,880  6.79    8,644,927   320,057  7.40  
Real estate mortgage 2,195,988   49,508  4.51    2,140,769   46,156  4.31  
HELOC and installment 831,904   30,805  7.41    822,616   32,464  7.89  
Tax-exempt (2) 1,137,087   27,009  4.75    915,302   21,038  4.60  
Total Loans 13,077,288   409,910  6.27    12,548,798   420,474  6.70  
Total Earning Assets 17,060,278   464,579  5.45 %  17,068,917   483,936  5.67 %
Total Non-Earning Assets 1,365,445       1,312,423     
TOTAL ASSETS$18,425,723      $18,381,340     
LIABILITIES           
Interest-Bearing deposits:           
Interest-bearing deposits$5,533,858  $69,909  2.53 % $5,503,185  $80,484  2.92 %
Money market deposits 3,526,461   54,666  3.10    3,040,938   54,613  3.59  
Savings deposits 1,291,133   4,958  0.77    1,534,305   7,277  0.95  
Certificates and other time deposits 1,975,923   35,255  3.57    2,421,413   55,062  4.55  
Total Interest-Bearing Deposits 12,327,375   164,788  2.67    12,499,841   197,436  3.16  
Borrowings 1,256,688   24,181  3.85    948,866   19,211  4.05  
Total Interest-Bearing Liabilities 13,584,063   188,969  2.78    13,448,707   216,647  3.22  
Noninterest-bearing deposits 2,198,939       2,388,695     
Other liabilities 302,281       321,188     
Total Liabilities 16,085,283       16,158,590     
STOCKHOLDERS' EQUITY 2,340,440       2,222,750     
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$18,425,723      $18,381,340     
Net Interest Income (FTE)  $275,610      $267,289   
Net Interest Spread (FTE) (4)    2.67 %     2.45 %
            
Net Interest Margin (FTE):           
Interest Income (FTE) / Average Earning Assets    5.45 %     5.67 %
Interest Expense / Average Earning Assets    2.22 %     2.54 %
Net Interest Margin (FTE) (5)    3.23 %     3.13 %
            
(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 2025 and 2024. These totals equal $12,326 and $11,655 for the six months ended June 30, 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 Six Months Ended
 June 30, March 31, December 31, September 30, June 30, June 30, June 30,
  2025  2025  2024  2024  2024  2025  2024
Net Income Available to Common Stockholders - GAAP$56,363   $54,870   $63,880   $48,719   $39,456   $111,233   $86,928  
Adjustments:             
Net realized losses on sales of available for sale securities 1    7    11,592    9,114    49    8    51  
Gain on branch sale —    —    (19,983)   —    —    —    —  
Non-core expenses1,2 —    —    762    —    —    —    3,481  
Tax on adjustments —    (2)   1,851    (2,220)   (12)   (2)   (860) 
Adjusted Net Income Available to Common Stockholders - Non-GAAP$56,364   $54,875   $58,102   $55,613   $39,493   $111,239   $89,600  
              
Average Diluted Common Shares Outstanding (in thousands) 57,773    58,242    58,247    58,289    58,328    58,005    58,800  
              
Diluted Earnings Per Common Share - GAAP$0.98   $0.94   $1.10   $0.84   $0.68   $1.92   $1.48  
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$0.98   $0.94   $1.00   $0.95   $0.68   $1.92   $1.53  
              
1 - Non-core expenses in the Three Months Ended December 31, 2024 included $0.8 million of costs directly related to the branch sale.
2 - Non-core expenses in the Six Months Ended June 30, 2024 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 Six Months Ended
 June 30, March 31, December 31, September 30, June 30, June 30, June 30,
  2025  2025  2024  2024  2024  2025  2024
Net Interest Income (GAAP)$133,014   $130,270   $134,370   $131,110   $128,571   $263,284   $255,634  
Fully Taxable Equivalent ("FTE") Adjustment 6,199    6,127    5,788    5,883    5,859    12,326    11,655  
Net Interest Income (FTE) (non-GAAP)$139,213   $136,397   $140,158   $136,993   $134,430   $275,610   $267,289  
              
Average Earning Assets (GAAP)$17,158,984   $16,960,475   $17,089,198   $16,990,358   $17,013,984   $17,060,278   $17,068,917  
Net Interest Margin (GAAP) 3.10 %  3.07 %  3.15 %  3.09 %  3.02 %  3.09 %  3.00 %
FTE Adjustment 0.15 %  0.15 %  0.13 %  0.14 %  0.14 %  0.14 %  0.13 %
Net Interest Margin (FTE) (non-GAAP) 3.25 %  3.22 %  3.28 %  3.23 %  3.16 %  3.23 %  3.13 %
              



RETURN ON TANGIBLE COMMON EQUITY - NON-GAAP
(Dollars In Thousands)Three Months Ended Six Months Ended
 June 30, March 31, December 31, September 30, June 30, June 30, June 30,
  2025  2025  2024  2024  2024  2025  2024
Total Average Stockholders' Equity (GAAP)$2,340,010   $2,340,874   $2,312,270   $2,251,547   $2,203,361   $2,340,440   $2,222,750  
Less: Average Preferred Stock (25,125)   (25,125)   (25,125)   (25,125)   (25,125)   (25,125)   (25,125) 
Less: Average Intangible Assets, Net of Tax (725,813)   (726,917)   (728,218)   (729,581)   (730,980)   (726,362)   (731,706) 
Average Tangible Common Equity, Net of Tax (Non-GAAP)$1,589,072   $1,588,832   $1,558,927   $1,496,841   $1,447,256   $1,588,953   $1,465,919  
              
Net Income Available to Common Stockholders (GAAP)$56,363   $54,870   $63,880   $48,719   $39,456   $111,233   $86,928  
Plus: Intangible Asset Amortization, Net of Tax 1,188    1,206    1,399    1,399    1,399    2,394    2,945  
Tangible Net Income (Non-GAAP)$57,551   $56,076   $65,279   $50,118   $40,855   $113,627   $89,873  
              
Return on Tangible Common Equity (Non-GAAP) 14.49 %  14.12 %  16.75 %  13.39 %  11.29 %  14.30 %  12.26 %
              
              
EFFICIENCY RATIO - NON-GAAP             
(Dollars In Thousands)Three Months Ended Six Months Ended
 June 30, March 31, December 31, September 30, June 30, June 30, June 30,
  2025  2025  2024  2024  2024  2025  2024
Noninterest Expense (GAAP)$93,598   $92,902   $96,289   $94,629   $91,413   $186,500   $188,348  
Less: Intangible Asset Amortization (1,505)   (1,526)   (1,771)   (1,772)   (1,771)   (3,031)   (3,728) 
Less: OREO and Foreclosure Expenses (29)   (600)   (227)   (942)   (373)   (629)   (907) 
                                   
Adjusted Noninterest Expense (Non-GAAP)$92,064   $90,776   $94,291   $91,915   $89,269   $182,840   $183,713  
              
Net Interest Income (GAAP)$133,014   $130,270   $134,370   $131,110   $128,571   $263,284   $255,634  
Plus: Fully Taxable Equivalent Adjustment 6,199    6,127    5,788    5,883    5,859    12,326    11,655  
Net Interest Income on a Fully Taxable Equivalent Basis (Non-GAAP)$139,213   $136,397   $140,158   $136,993   $134,430   $275,610   $267,289  
              
Noninterest Income (GAAP)$31,303   $30,048   $42,742   $24,866   $31,334   $61,351   $57,972  
Less: Investment Securities (Gains) Losses 1    7    11,592    9,114    49    8    51  
Adjusted Noninterest Income (Non-GAAP)$31,304   $30,055   $54,334   $33,980   $31,383   $61,359   $58,023  
Adjusted Revenue (Non-GAAP)$170,517   $166,452   $194,492   $170,973   $165,813   $336,969   $325,312  
Efficiency Ratio (Non-GAAP) 53.99 %  54.54 %  48.48 %  53.76 %  53.84 %  54.26 %  56.47 %
              
Adjusted Noninterest Expense (Non-GAAP)$92,064   $90,776   $94,291   $91,915   $89,269   $182,840   $183,713  
Less: Non-core Expenses1,2 —    —    (762)   —    —    —    (3,481) 
Adjusted Noninterest Expense Excluding Non-core Expenses (Non-GAAP)$92,064   $90,776   $93,529   $91,915   $89,269   $182,840   $180,232  
              
Adjusted Revenue (Non-GAAP)$170,517   $166,452   $194,492   $170,973   $165,813   $336,969   $325,312  
Less: Gain on Branch Sale —    —    (19,983)   —    —    —    —  
Adjusted Revenue Excluding Gain on Branch Sale (Non-GAAP)$170,517   $166,452   $174,509   $170,973   $165,813   $336,969   $325,312  
                                   
Adjusted Efficiency Ratio (Non-GAAP) 53.99 %  54.54 %  53.60 %  53.76 %  53.84 %  54.26 %  55.40 %
 
1 - Non-core expenses in the Three Months Ended December 31, 2024 included $0.8 million of costs directly related to the branch sale.
2 - Non-core expenses in the Six Months Ended June 30, 2024 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, First Vice President and Director of Corporate Administration

765-521-7619

SOURCE: First Merchants Corporation, Muncie, Indiana



EN
23/07/2025

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First Merchants Corporation Announces Second Quarter 2025 Earnings Per Share MUNCIE, Ind., July 23, 2025 (GLOBE NEWSWIRE) -- First Merchants Corporation (NASDAQ - FRME) Second Quarter 2025 Highlights: Net income available to common stockholders was $56.4 million and diluted earnings per common share totaled $0.98 in the second quarter of 2025, compared to $39.5 million and $0.68 in the second quarter of 2024, and $54.9 million and $0.94 in the first quarter of 2025.Robust capital position with Common Equity Tier 1 Capital Ratio of 11.35%.Repurchased 818,480 shares totaling $31.7 million...

July 23, 2025 1 EN
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First Merchants Corporation Announces Cash Dividend on Its Preferred S...

First Merchants Corporation Announces Cash Dividend on Its Preferred Stock MUNCIE, Ind., July 15, 2025 (GLOBE NEWSWIRE) -- First Merchants Corporation has declared a quarterly cash dividend of $46.88 per share on its 7.50% Non-Cumulative Perpetual Preferred Stock Series A, represented by depositary shares (NASDAQ: FRMEP) each representing a 1/100th interest in a share of the Series A preferred stock. Holders of depositary shares will receive $0.4688 per depositary share. The dividend will be payable on August 15, 2025, to stockholders of record on July 30, 2025. About First Merchants Cor...

July 15, 2025 1 EN
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First Merchants Corporation to Report Second Quarter 2025 Financial Re...

First Merchants Corporation to Report Second Quarter 2025 Financial Results, Host Conference Call and Webcast MUNCIE, Ind., June 30, 2025 (GLOBE NEWSWIRE) -- First Merchants Corporation (Nasdaq:FRME) will release second quarter 2025 financial results on July 23, 2025. The Corporation will host a second quarter 2025 earnings conference call and webcast at 9:00 a.m. (ET) on Thursday, July 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: () In order to view the webcast and presentation sli...

June 30, 2025 1 EN
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First Merchants Corporation Announces Changed Ex-Dividend Date for Pre...

First Merchants Corporation Announces Changed Ex-Dividend Date for Previously Announced Dividend MUNCIE, Ind., May 21, 2025 (GLOBE NEWSWIRE) -- First Merchants Corporation (Nasdaq: FRME) has amended the ex-dividend date for its recently declared cash dividend of $0.36 from June 5, 2025, to June 6, 2025.  The payment date for the quarterly dividend will remain as June 20, 2025, as previously announced on May 16, 2025. About First Merchants Corporation: First Merchants Corporation is a financial holding company headquartered in Muncie, Indiana. The Corporation has one full-service ban...

May 21, 2025 1 EN
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First Merchants Corporation Announces Cash Dividend

First Merchants Corporation Announces Cash Dividend MUNCIE, Ind., May 16, 2025 (GLOBE NEWSWIRE) -- First Merchants Corporation (NASDAQ: FRME) declared a cash dividend on May 16, 2025 of $0.36 per share. The dividend is payable on June 20, 2025, to common shareholders of record as of June 6, 2025. For purposes of broker trading, the ex-date of the cash dividend is June 5, 2025. 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 als...

May 16, 2025 1 EN

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