MUNCIE, Ind., Feb. 02, 2026 (GLOBE NEWSWIRE) -- First Merchants Corporation (NASDAQ: FRME) and First Savings Financial Group, Inc. (NASDAQ: FSFG) have finalized a merger of the two companies. Following regulatory approvals last month, the companies consummated their legal closing through a stock transaction effective February 1, 2026. As previously announced in late 2025, First Savings Bank will also merge with and into First Merchants Bank. Headquartered in Jeffersonville, Indiana, directly across the Ohio ...

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In commercial deposits, Stewart said growth was driven primarily by public fund depository relationships, which carry a higher cost but are tied to local government relationships that also use treasury services. He also said higher line utilization typically reduces operating deposit account balances, reinforcing the company’s focus on improving deposit mix through “primary, core accounts” and deposit-cost discipline.On deposits, Stewart called the fourth quarter the company’s strongest quarter of deposit g ...

First Merchants (NasdaqGS:FRME) Q4 2025 Earnings call January 27, 2026 09:00 AM ET Company ParticipantsBrendan Nosal - Director of the Research DepartmentDamon DelMonte - Managing DirectorJohn Martin - Chief Credit OfficerMark Hardwick - CEOMichael Stewart - PresidentMichele Kawiecki - CFOConference Call ParticipantsBrian Martin - AnalystDaniel Tamayo - AnalystNathan Race - Managing Director and Senior Research AnalystTerry McEvoy - Managing Director and Research AnalystOperatorThank you for standing by, an ...

Financial Data and Key Metrics Changes - The company reported record net income of $224.1 million for the full year, with diluted earnings per share of $3.88, reflecting a 13.8% increase from the previous year [3] - Fourth quarter net income was $56.6 million, or $0.99 per share, with an annual return on assets of 1.21% and a return on tangible common equity of 14.08% [3] - The efficiency ratio for the year was 54.5%, indicating significant operating leverage with revenues growing almost five times faster than expenses [3] Business Line Data and Key Metrics Changes - Commercial loan growth was robust, with $153 million in growth for the quarter (6% annualized) and $852 million year-to-date (nearly 7% growth for 2025) [7] - The consumer segment also contributed to growth, with $44 million in loan growth for the quarter and $87 million for the year [7] - Total revenues in Q4 showed strong growth, with net interest income increasing by $5.4 million and non-interest income by $0.6 million [11] Market Data and Key Metrics Changes - The company operates 111 banking centers across Indiana, Ohio, and Michigan, with a focus on growing within these markets [2] - The fourth quarter was the strongest for deposit growth, driven by the consumer segment, which saw a $155 million increase in total consumer deposits [8] - The company has seen a stable pipeline for loans, indicating optimism for maintaining loan growth into the first quarter of 2026 [7] Company Strategy and Development Direction - The company aims to build on its Midwestern strength and grow organically through deeper relationships and smarter use of technology [6] - The acquisition of First Savings Group, adding approximately $2.4 billion in assets, is expected to enhance the company's presence in Southern Indiana and the Louisville MSA [3][4] - The integration of First Savings Bank is on track, with a focus on community banking and specialty verticals as priorities [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic and financial benefits of the merger, expecting to close the acquisition on February 1, 2026 [4] - The Midwest economy continues to expand, with clients' businesses growing and bankers winning new relationships [7] - The company anticipates mid-single-digit loan growth for the first quarter of 2026, with expectations of 6% to 8% growth for the year [32][34] Other Important Information - The company plans to sell the entire First Savings bond portfolio, approximately $250 million, to optimize the balance sheet [28] - The tangible book value per share ended the year at $30.18, a 12.7% increase from the prior year [11] - The company repurchased 272,000 shares for $10.4 million in the fourth quarter, totaling over 1.2 million shares for $46.9 million in 2025 [16] Q&A Session Summary Question: Update on balance sheet optimization - Management is evaluating balance sheet repositioning but expects any actions to be modest, focusing on selling the First Savings bond portfolio [27][29] Question: Expectations for loan growth in 2026 - Management expects mid-single-digit loan growth for the first quarter, with potential for 6% to 8% growth for the year [32][34] Question: Guidance on core expenses - Non-interest expenses are expected to increase by 3%-5% due to talent additions and the integration of First Savings [44] Question: Impact of FSFG on margin - The acquisition is expected to provide a lift to the margin due to interest accretion [72] Question: Outlook on buybacks versus M&A - Management is focused on the current acquisition and believes buybacks are the best short-term strategy given current valuations [92]

Financial Data and Key Metrics Changes - The company reported record total assets of $19 billion, total loans of $13.8 billion, and total deposits of $15.3 billion [2] - Record net income of $224.1 million and diluted earnings per share of $3.88, an increase of 13.8% from the previous year [3] - Fourth quarter net income totaled $56.6 million or $0.99 per share, with an annual return on assets of 1.21% and return on tangible common equity of 14.08% [3] - Efficiency ratio for the year was 54.5%, with revenues growing almost five times faster than expenses [3] Business Line Data and Key Metrics Changes - Commercial loan growth for the quarter was $153 million or 6% annualized, with year-to-date growth of $852 million, nearly 7% for all of 2025 [6] - Consumer segment contributed $44 million in loan growth for the quarter and $87 million for the year, driven by residential mortgage, HELOC, and private banking relationships [7] - Total revenues in Q4 included a $5.4 million increase in net interest income and a $0.6 million increase in non-interest income [11] Market Data and Key Metrics Changes - The fourth quarter was the strongest for deposit growth, with consumer segment driving increases in new households and balances [8] - Deposits increased by $155 million in the fourth quarter, with over $250 million in non-maturity balance growth [8] - The primary driver of deposit growth was through public fund depository relationships, which are higher cost but involve local government and public relationships [9] Company Strategy and Development Direction - The company aims to build on its Midwestern strength and grow organically through deeper relationships and smarter use of technology [5] - The acquisition of First Savings Group, adding approximately $2.4 billion in assets, is expected to enhance the company's presence in Southern Indiana and the Louisville MSA [3][4] - Integration efforts for First Savings Bank are on track, with a focus on community bank model and specialty verticals [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic and financial benefits of the merger, expecting to close on February 1, 2026 [4] - The outlook for loan growth in 2026 is projected to be in the mid-single-digit range, with expectations of 6% to 8% growth [32] - Management noted that asset quality remains strong, with stable non-performing assets and a robust coverage ratio [19] Other Important Information - The company plans to sell the entire First Savings bond portfolio, approximately $250 million, to optimize the balance sheet [25] - Non-interest expense for the year increased only 3.2%, demonstrating significant operating leverage [15] - The tangible common equity ratio increased to 9.38%, with share repurchases totaling over 1.2 million shares for $46.9 million in 2025 [15] Q&A Session Summary Question: Update on balance sheet optimization - Management is evaluating modest balance sheet repositioning, including selling the First Savings bond portfolio [25][26] Question: Expectations for loan growth in 2026 - Loan growth is expected to be in the mid-single-digit range, with strong pipelines across various segments [30][32] Question: Guidance on deposit repricing schedule - Approximately $800 million of CDs maturing in the first two quarters of 2026, with weighted average rates higher than current specials [34] Question: Outlook on operating leverage - Core operating leverage is expected to be less impressive due to talent additions, but overall growth in net interest income and fee income is anticipated [39] Question: Guidance on core expense base - Non-interest expense is budgeted to increase by 3%-5% due to talent additions and First Savings operating expenses [43] Question: Charge-off expectations - Charge-offs are expected to be in the range of $6 million to $7 million over the near term [81] Question: Impact of M&A on loan pipeline - Management sees M&A-related disruptions as opportunities for new client conversations and potential talent acquisition [58][60] Question: Buyback strategy - The company intends to be aggressive with buybacks if the stock price remains low, viewing it as a better use of capital than pursuing new M&A [88]

Investor Update Fourth Quarter 2025 Forward Looking Statements This presentation 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" ...

Core Insights - First Merchants (FRME) reported a revenue of $172.17 million for the quarter ended December 2025, reflecting a year-over-year decline of 2.8% and an EPS of $0.98 compared to $1.00 a year ago, with a revenue surprise of +3.22% against the Zacks Consensus Estimate of $166.8 million [1] Financial Performance - The company’s efficiency ratio was reported at 54.5%, slightly better than the estimated 55% by analysts [4] - The net interest margin (FTE) stood at 3.3%, exceeding the average estimate of 3.2% [4] - Net charge-offs as a percentage of average loans (annualized) were 0.2%, matching the average estimate [4] - The average balance of total earning assets was $17.65 billion, surpassing the average estimate of $17.57 billion [4] - Total non-interest income reached $33.11 million, above the average estimate of $32.11 million [4] - Net gains and fees on sales of loans were $5.42 million, exceeding the average estimate of $4.93 million [4] - Other income was reported at $1.26 million, slightly below the estimated $1.4 million [4] - Net interest income was $139.06 million, higher than the average estimate of $135.15 million [4] - Other customer fees were $0.32 million, below the average estimate of $0.41 million [4] - Net interest income (FTE) was $145.25 million, compared to the average estimate of $142.06 million [4] - Fiduciary and wealth management fees totaled $9.18 million, slightly above the average estimate of $9.07 million [4] - Service charges on deposit accounts were $8.7 million, slightly below the estimated $8.75 million [4] Stock Performance - Shares of First Merchants have returned -0.4% over the past month, while the Zacks S&P 500 composite has changed by +0.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

分组1 - First Merchants reported quarterly earnings of $0.98 per share, exceeding the Zacks Consensus Estimate of $0.96 per share, but down from $1 per share a year ago, representing an earnings surprise of +2.08% [1] - The company posted revenues of $172.17 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 3.22%, although this is a decrease from year-ago revenues of $177.11 million [2] - First Merchants has surpassed consensus EPS estimates in all four of the last quarters, while it has only topped consensus revenue estimates once in the same period [2] 分组2 - The stock has gained approximately 1.6% since the beginning of the year, compared to the S&P 500's gain of 1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.93 on revenues of $177.9 million, and for the current fiscal year, it is $4.14 on revenues of $772.5 million [7] - The Zacks Industry Rank for Banks - Midwest is currently in the bottom 38% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Performance - First Merchants Corporation reported a record net income of $224.1 million and diluted EPS of $3.88 for the full year 2025[1]. - In Q4 2025, net income available to common stockholders was $56.6 million, down from $63.9 million in Q4 2024, with diluted EPS at $0.99 compared to $1.10 in the same period[2]. - The return on average assets for Q4 2025 was 1.20%, down from 1.39% in Q4 2024[23]. - Net income available to common stockholders for Q4 2025 was $56,596,000, compared to $63,880,000 in Q4 2024, representing a decline of about 11.3%[22]. - Adjusted Net Income Available to Common Stockholders for the twelve months ended December 31, 2025 was $224,655 thousand, up from $203,315 thousand in 2024, representing an increase of 10.5%[31]. Loan and Deposit Growth - Total loans increased by $197.4 million, or 5.8% annualized, on a linked quarter basis, and by $938.8 million, or 7.3%, over the last twelve months[3]. - Total deposits rose by $424.9 million, or 11.4% annualized, on a linked quarter basis, and by $773.2 million, or 5.3%, year-over-year[6]. - Total loans reached $13,717,822 thousand in Q4 2025 from $12,757,676 thousand in Q4 2024, reflecting a growth of approximately 7.5%[23]. - Total deposits increased to $15,294,855 thousand from $14,521,626 thousand, indicating an increase of about 5.3%[21]. Asset and Liability Management - Total assets of the Corporation reached $19.0 billion as of quarter-end, with total loans at $13.8 billion[4]. - Total assets increased to $19,025,101 thousand from $18,311,969 thousand, representing a growth of approximately 3.9%[21]. - Total liabilities grew to $16,558,434 thousand, up from $16,006,986 thousand, which is an increase of approximately 3.4%[21]. - Stockholders' equity increased to $2,466,667 thousand from $2,412,402 thousand, indicating a growth of 2.2%[25]. Income and Expense Analysis - Net interest income for Q4 2025 was $139.1 million, an increase of $5.4 million, or 4.0%, from the previous quarter[8]. - Noninterest income totaled $33.1 million for the quarter, a decrease of $9.6 million from Q4 2024, primarily due to a prior year gain from branch sales[9]. - Noninterest Expense (GAAP) for the three months ended December 31, 2025, was $99,522 thousand, an increase from $96,561 thousand in the previous quarter[34]. - The provision for credit losses was $7.150 million in Q4 2025, up from $4.200 million in Q4 2024, indicating a significant increase in credit loss provisions[26]. Credit Quality and Performance - Nonperforming assets to total assets were 0.38% for Q4 2025, compared to 0.36% in the prior quarter, indicating stable credit performance[7]. - Nonaccrual loans increased to $71,773 thousand from $65,740 thousand in the previous quarter, representing an increase of 3.9%[24]. - Net charge-offs for Q4 2025 were $6,021,000, significantly higher than $771,000 in Q4 2024, marking a substantial increase[23]. - The allowance for credit losses on loans was $195,597 thousand, slightly up from $192,757 thousand, indicating a marginal increase of about 1.0%[21]. Efficiency and Profitability Metrics - The efficiency ratio for Q4 2025 was 54.52%, compared to 48.48% in Q4 2024, indicating a decline in operational efficiency[23]. - The net interest margin (FTE) for the twelve months ended December 31, 2025, was 3.25%, compared to 3.19% for the same period in 2024, indicating an improvement of 1.88%[30]. - Return on Tangible Common Equity for Q4 2025 was 13.57%, down from 16.75% in Q4 2024, reflecting a decrease of 3.18 percentage points year-over-year[33]. - The Efficiency Ratio (Non-GAAP) improved to 54.52% for the three months ended December 31, 2025, compared to 55.09% in the prior quarter[34]. Acquisition and Future Outlook - The acquisition of First Savings Financial Group, Inc. is expected to close on February 1, 2026, adding approximately $2.4 billion in assets[3]. - The company incurred acquisition-related expenses of $524 thousand in Q4 2025, compared to $800 thousand for the full year 2024[31].