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MUNCIE, Ind., Feb. 09, 2026 (GLOBE NEWSWIRE) -- First Merchants Corporation, a $21.4 billion financial holding company, announced that Larry Myers has been appointed to the Boards of Directors of First Merchants Corporation and First Merchants Bank. Myers recently announced plans to transition from his role as President and Chief Executive Officer of First Savings Bank and First Savings Financial Group, Inc., positions he has held for nearly 20 years. The two organizations completed their merger on February ...

Core Viewpoint - First Merchants Corporation and First Savings Financial Group have completed a merger, enhancing their capabilities to serve Indiana communities and creating a stronger financial entity with significant assets [1][3]. Company Overview - First Savings Bank, headquartered in Jeffersonville, Indiana, has total assets of $2.4 billion, total loans of $1.9 billion, and total deposits of $1.7 billion as of December 31, 2025 [2]. - First Merchants Corporation will have approximately $21.4 billion in assets post-merger, making it the second largest financial holding company in Indiana [3]. Merger Details - The merger was finalized following regulatory approvals and became effective on February 1, 2026, through a stock transaction [1]. - The integration of First Savings Bank into First Merchants Bank is expected to be completed in the second quarter of 2026 [3]. Leadership Statements - Mark Hardwick, CEO of First Merchants Corporation, emphasized the merger's potential to enhance service capabilities while maintaining a community-focused approach [3]. - Larry Myers, President and CEO of First Savings Bank, highlighted the shared commitment to exceptional service and community engagement between the two banks [3]. Additional Information - First Merchants Corporation operates as a financial holding company with one full-service bank charter, First Merchants Bank, and also includes First Merchants Private Wealth Advisors [4]. - The common stock of First Merchants Corporation is traded on the NASDAQ under the symbol FRME [5].

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

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 ...

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 included a $5.4 million increase in net interest income and a $0.6 million increase in non-interest income, leading to pre-tax pre-provision earnings of $72.4 million [11] Market Data and Key Metrics Changes - The company operates 111 banking centers across Indiana, Ohio, and Michigan, with total assets reaching $19 billion, total loans at $13.8 billion, and total deposits at $15.3 billion [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] 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] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic and financial benefits of the merger with First Savings Group, which is set to close on February 1, 2026 [4] - The company anticipates maintaining loan growth into the first quarter of 2026, with expectations of mid-single-digit growth for the year [32] Other Important Information - The allowance for credit losses at quarter-end was $195.6 million, with a coverage ratio of 1.42% [14] - The company repurchased 272,000 shares for $10.4 million in the 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 modest balance sheet repositioning, including selling the entire First Savings bond portfolio of about $250 million [28][29] Question: Expectations for loan growth in 2026 - Management expects mid to high single-digit loan growth for 2026, with balanced growth across segments and geographies [32][33] Question: Guidance on core expense base - Non-interest expense is expected to increase by 3%-5% due to talent additions and the integration of First Savings Group [44] Question: Outlook on fee income growth - Management anticipates double-digit growth in non-interest income for 2026, driven by wealth management and treasury management [55][58] Question: Impact of M&A on loan pipeline - Management sees opportunities arising from M&A disruptions among competitors, particularly in Michigan [60][61] Question: Buyback strategy - Management intends to be aggressive with buybacks if the stock continues to trade below average valuation levels [62]

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]