Financial Data and Key Metrics Changes - Year-to-date net income totaled $167.5 million, an increase of $31.9 million or 23.5% from the nine months ended 2024, while earnings per share totaled $2.90, an increase of $0.59 or 25.5% during the same period [6] - Return on assets (ROA) was 1.22%, and the efficiency ratio was 55% [3] - Tangible book value increased 4% linked quarter and 9% compared to the same period in the prior year [13] Business Line Data and Key Metrics Changes - Commercial loan growth for the quarter was $268 million, over 10% annualized, with year-to-date growth of $699 million, over 9% annualized [8] - The consumer segment contributed $21 million of loan growth for the quarter, driven by residential mortgage, HELOC, and private banking relationships [9] - Non-interest income totaled $32.5 million, with customer-related fees of $29.3 million reflecting strong performance across all categories [16] Market Data and Key Metrics Changes - Total deposits declined by $23 million in aggregate, but core relationship or operating account balances grew by 4.9% or $56 million [10] - Non-maturity deposit balances increased by $178 million, while maturity deposit balances decreased by $198 million year to date [9] Company Strategy and Development Direction - The company announced the acquisition of First Savings Financial Group, adding approximately $2.4 billion in assets and expanding its presence into Southern Indiana [3] - The strategy remains commercially focused across all business segments and primary markets of Indiana, Michigan, and Ohio [7] - The company aims to enhance fee income through SBA lending and other loan growth initiatives [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining loan growth and increasing market share activities into the fourth quarter [8] - The company anticipates a mid-first quarter closing for the First Savings acquisition and a mid-second quarter integration [5] - Management expects to manage deposit costs effectively in response to potential rate cuts [28] Other Important Information - The allowance for credit losses at quarter end was $194.5 million, with a coverage ratio of 1.43% [15] - The total cost of deposits increased 14 basis points to 2.44% this quarter, reflecting competitive deposit dynamics [15] Q&A Session Summary Question: Expense outlook for Q4 and 2026 - Management expects Q4 core expenses to be relatively in line with Q3, with no meaningful increase anticipated [26] Question: Impact of potential rate cuts on margin - Management predicts a few basis points of margin compression in Q4 if rate cuts occur, with a historical model indicating a decline of about two basis points for each 25 basis point cut [28] Question: Deposit pricing and competition - Management noted that deposit costs increased due to competitive pressures, but they are hopeful for more rational pricing following recent rate cuts [36] Question: Future M&A ambitions - Management indicated that while they are busy with the current acquisition, they are not prioritizing additional M&A at this time [41] Question: Sustainability of loan growth - Management believes the current loan growth is sustainable, driven by normal business activity and a strong economic outlook in the Midwest [48]

Financial Data and Key Metrics Changes - Year-to-date net income totaled $167.5 million, an increase of $31.9 million or 23.5% from the nine months ended 2024, while earnings per share totaled $2.90, an increase of $0.59 or 25.5% during the same period [5][12] - Return on assets (ROA) was 1.22%, with an efficiency ratio of 55% [3][12] - Tangible common equity increased to 9.18%, providing meaningful capital flexibility [5][16] Business Line Data and Key Metrics Changes - Commercial loan growth for the quarter was $268 million, over 10% annualized, with year-to-date growth of $699 million, over 9% annualized [8][12] - The consumer segment contributed $21 million of loan growth for the quarter, driven by residential mortgage, HELOC, and private banking relationships [9] - Non-interest income totaled $32.5 million, with customer-related fees of $29.3 million reflecting continued momentum [16] Market Data and Key Metrics Changes - Total deposits declined by $23 million in aggregate, but core relationship or operating account balances grew by 4.9% or $56 million [10] - Non-maturity deposit balances increased by $178 million, while maturity deposit balances decreased by $198 million year to date [9][10] Company Strategy and Development Direction - The company announced the acquisition of First Savings Financial Group, adding approximately $2.4 billion in assets and expanding its presence into Southern Indiana [3][4] - The strategy remains commercially focused across all business segments and primary markets of Indiana, Michigan, and Ohio [7] - The company aims to enhance fee income through new product offerings and a more robust SBA lending capability [4][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining loan growth and increasing market share activities into the fourth quarter [8] - The company anticipates a disciplined finish to the year with core expenses expected to remain in line with Q3 [26] - Management is optimistic about the impact of the First Savings acquisition on future growth and market presence [4][11] Other Important Information - The company repurchased 162,474 shares totaling $6.5 million during the quarter, bringing total share repurchases year to date to 939,271 shares, totaling $36.5 million [16] - The allowance for credit losses at quarter end was $194.5 million, with a coverage ratio of 1.43% [15] Q&A Session Summary Question: Expense outlook for Q4 and 2026 - Management expects Q4 core expenses to be relatively in line with Q3, with no meaningful increase anticipated [26] Question: Impact of potential rate cuts on margin - Management predicts a few basis points of margin compression in Q4 if rate cuts occur, with a historical model indicating a decline of about two basis points for each 25 basis point cut [27] Question: Deposit pricing and competition - Management noted that deposit costs increased due to competitive pressures, but they are hopeful for more rational pricing following recent rate cuts [35][36] Question: Future M&A ambitions - Management indicated that while they are busy with the current acquisition, they are not prioritizing additional M&A at this time, focusing instead on organic growth [40] Question: Sustainability of loan growth - Management believes the current loan growth is sustainable, driven by normal business activity and a strong economic outlook in the Midwest [45][46] Question: Capital generation and uses of excess capital - Management plans to continue using capital for asset generation, dividends, and share buybacks, while optimizing the balance sheet [88][90]

Financial Data and Key Metrics Changes - Year-to-date net income totaled $167.5 million, an increase of $31.9 million or 23.5% from the nine months ended February 2024 [6] - Earnings per share totaled $2.90, an increase of $0.59 or 25.5% during the same period [6] - Return on assets (ROA) was 1.22%, consistent with year-to-date performance [4] - Efficiency ratio was 55%, reflecting high performance [4] - Total revenues in Q3 showed meaningful growth with net interest income increasing by $700,000 and non-interest income increasing by $1.2 million [16] Business Line Data and Key Metrics Changes - Commercial loan growth for the quarter was $268 million, over 10% annualized, with year-to-date growth of $699 million, over 9% annualized [10] - Consumer segment contributed $21 million in loan growth for the quarter, driven by residential mortgage, HELOC, and private banking relationships [11] - Total loan portfolio yield increased to 6.4%, driven by loan originations and refinances at an average yield of 6.84% [19] Market Data and Key Metrics Changes - Total deposits increased by $96 million during the quarter, with non-maturity categories growing at nearly 5% annualized [11] - Maturity deposit balances decreased by $198 million year-to-date, while non-maturity deposit balances increased by $178 million [12] Company Strategy and Development Direction - The company announced the acquisition of First Savings Financial Group, adding approximately $2.4 billion in assets and expanding into Southern Indiana [4] - The strategy remains focused on commercial lending across Indiana, Michigan, and Ohio, with an emphasis on enhancing fee income through SBA loans and other products [9] - The company aims to build on the acquired deposit franchise to create a community bank model similar to previous successful acquisitions [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining loan growth and increasing market share activities into the fourth quarter [10] - The company anticipates a mid-first quarter closing for the acquisition and a mid-second quarter integration [5] - Management noted that the Midwest economies continue to expand, contributing to positive business outlooks [10] Other Important Information - The tangible common equity ratio increased to 9.18%, providing meaningful capital flexibility [6] - The company repurchased 162,474 shares totaling $6.5 million during the quarter, with total share repurchases year-to-date reaching $36.5 million [23] Q&A Session Summary Question: Expense outlook for Q4 and 2026 - Management expects Q4 core expenses to be in line with Q3, with no meaningful increase anticipated [33][34] Question: Impact of potential rate cuts on margins - Management predicts a few basis points of margin compression if rate cuts occur, but they are actively managing deposit rates to mitigate this [35][36] Question: Deposit cost increase during the quarter - The increase was primarily due to competitive pressures requiring higher rates on specials [38] Question: Future M&A ambitions - Management indicated that while they are busy with the current acquisition, they are not prioritizing additional M&A at this time [51] Question: Sustainability of loan growth - Management believes the current loan growth is sustainable, driven by normal business activity and strong pipelines [59][62] Question: Capital generation and uses of excess capital - Management plans to continue using capital for asset generation, dividends, and share buybacks, while optimizing the balance sheet [106][108] Question: Asset quality and reserve levels - Management maintains a conservative approach to reserves, reflecting a higher coverage ratio compared to peers [109] Question: Progression of net interest income (NII) - Management is confident in the ability to grow NII dollars even with anticipated rate cuts, due to effective management of deposit costs [113]

PRO FORMA AND PROJECTED INFORMATION This presentation contains certain pro forma and projected financial information, including projected pro forma information, which reflects First Merchants' current expectations and assumptions. This pro forma information is for illustrative purposes only and should not be relied on as necessarily being indicative of future results. The assumptions and estimates underlying the pro forma information are inherently uncertain and are subject to a wide variety of significant ...

First Merchants (FRME) reported $166.14 million in revenue for the quarter ended September 2025, representing a year-over-year increase of 6.5%. EPS of $0.99 for the same period compares to $0.95 a year ago.The reported revenue represents a surprise of -0.07% over the Zacks Consensus Estimate of $166.25 million. With the consensus EPS estimate being $0.96, the EPS surprise was +3.13%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to W ...

Core Insights - First Merchants (FRME) reported quarterly earnings of $0.99 per share, exceeding the Zacks Consensus Estimate of $0.96 per share, and showing an increase from $0.95 per share a year ago, resulting in an earnings surprise of +3.13% [1] - The company posted revenues of $166.14 million for the quarter ended September 2025, slightly missing the Zacks Consensus Estimate by 0.07%, but up from $155.98 million year-over-year [2] - First Merchants has surpassed consensus EPS estimates in all four of the last quarters, but has only topped revenue estimates once in the same period [2] Earnings Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.96 on revenues of $167.2 million, and for the current fiscal year, it is $3.84 on revenues of $658.1 million [7] Industry Context - The Zacks Industry Rank indicates that the Banks - Midwest sector is in the top 35% of over 250 Zacks industries, suggesting a favorable environment for stocks in this category [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]

Financial Performance - Third quarter 2025 net income available to common stockholders was $56.3 million, up from $48.7 million in the same period in 2024, with diluted earnings per share increasing to $0.98 from $0.84[3] - Noninterest income for the quarter totaled $32.5 million, an increase of $1.2 million, or 3.8%, compared to the second quarter of 2025, and an increase of $7.6 million, or 30.6%, from the third quarter of 2024[10] - Net interest income was $133.7 million for the quarter, reflecting a $0.7 million increase, or 0.5%, compared to the prior quarter[9] - Net Income for the three months ended September 30, 2025, was $56,765,000, an increase of 15.5% compared to $49,187,000 in the same period of 2024[21] - Basic Net Income Available to Common Stockholders for the three months ended September 30, 2025, was $0.98 per share, up from $0.84 per share in 2024, marking a growth of 16.7%[21] - Adjusted Net Income Available to Common Stockholders for Q3 2025 was $56,986, compared to $54,875 in Q3 2024, reflecting a year-over-year increase of 3.85%[30] - Net Income Available to Common Stockholders (GAAP) for the nine months ended September 30, 2025, was $167,530, up from $135,647 in the same period of 2024, representing a growth of 23.5%[30] Asset and Loan Growth - Total loans grew by $288.8 million, or 8.7% annualized, on a linked quarter basis, and increased by $926.9 million, or 7.3%, over the past twelve months[4] - Net loans rose to $13,396,706 thousand, up from $12,612,458 thousand, reflecting a year-over-year increase of 6.21%[20] - Total loans reached $13.591 billion as of September 30, 2025, up from $13.297 billion in June 2025, representing a growth of 2.2%[26] - Total loans increased to $13,402,379,000 for the three months ended September 30, 2025, up from $12,680,166,000 in 2024, representing a growth of 5.7%[28] Deposit Growth - Total deposits increased by $72.4 million, or 2.0% annualized, on a linked quarter basis, and grew by $504.9 million, or 3.5%, over the past twelve months[7] - Total deposits reached $14,869,979 thousand, compared to $14,365,100 thousand, marking an increase of 3.52%[20] - Total deposits as of September 30, 2025, were $14,907,861,000, an increase from $14,702,454,000 in 2024, representing a growth of 1.4%[22] - Total deposits increased to $14.870 billion in Q3 2025, compared to $14.798 billion in Q2 2025, reflecting a growth of 0.5%[27] Capital and Financial Ratios - Common Equity Tier 1 Capital Ratio was 11.34%, indicating a robust capital position[4] - The total risk-based capital ratio equaled 13.04%, reflecting the Corporation's strong financial health[12] - The efficiency ratio for the quarter was 55.09%, or 54.56% excluding non-core charges[4] - Return on Average Assets for the three months ended September 30, 2025, improved to 1.22%, compared to 1.07% in the same period of 2024[22] - Total Stockholders' Equity as of September 30, 2025, was $2,367,971,000, an increase from $2,251,547,000 in 2024, reflecting a growth of 5.2%[22] Credit Quality - The Corporation's Allowance for Credit Losses – Loans totaled $194.5 million, or 1.43% of total loans, with non-performing assets to total assets at 0.36%[8] - Nonaccrual loans decreased to $65,740 thousand from $67,358 thousand in the previous quarter, a decline of 2.4%[23] - Nonperforming assets (NPA) totaled $67,010 thousand, down from $67,535 thousand, reflecting a decrease of 0.8%[23] - The allowance for credit losses on loans remained stable at $194,468 thousand, compared to $195,316 thousand in the previous quarter[23] Efficiency and Expenses - The efficiency ratio for the three months ended September 30, 2025, was 55.09%, compared to 53.76% in the same period of 2024, indicating a slight decline in efficiency[22] - Noninterest Expense (GAAP) for the three months ended September 30, 2025, was $96,561 thousand, compared to $93,598 thousand for the previous quarter, reflecting an increase of 2.1%[33] - Adjusted Noninterest Expense (Non-GAAP) for the nine months ended September 30, 2025, was $277,781 thousand, slightly up from $275,628 thousand in the same period of 2024, indicating a year-over-year increase of 0.8%[33] Acquisition - The Corporation announced the acquisition of First Savings Financial Group, valued at approximately $241.3 million, expected to close in the first quarter of 2026, adding $2.4 billion in assets[3]

Core Insights - First Merchants Corporation reported strong financial performance in Q3 2025, with net income of $56.3 million, up from $48.7 million in Q3 2024, and diluted earnings per share increasing to $0.98 from $0.84 in the same period last year [2][8]. Financial Performance - The Corporation's total assets reached $18.8 billion, with total loans amounting to $13.6 billion, reflecting a year-over-year loan growth of $926.9 million, or 7.3% [4][8]. - Net interest income for the quarter was $133.7 million, a slight increase of $0.7 million, or 0.5%, compared to the previous quarter, and a rise of $2.6 million, or 1.9%, from Q3 2024 [9]. - Noninterest income totaled $32.5 million, marking a 3.8% increase from the second quarter of 2025 and a significant 30.6% increase from Q3 2024 [10]. Acquisition Strategy - The Corporation announced the acquisition of First Savings Financial Group, valued at approximately $241.3 million, which is expected to close in Q1 2026, adding about $2.4 billion in assets and expanding its presence in Southern Indiana and the Louisville metropolitan area [3][8]. Asset Quality - The Allowance for Credit Losses on loans was $194.5 million, representing 1.43% of total loans, with non-performing assets to total assets remaining stable at 0.36% [7][22]. - Net charge-offs for the quarter were $5.1 million, with a provision for credit losses recorded at $4.3 million [7][21]. Capital Position - The Corporation maintained a robust capital position with a Common Equity Tier 1 Capital Ratio of 11.34% and a Tangible Common Equity to Tangible Assets Ratio of 9.18% [8][12].

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MUNCIE, Ind., Oct. 02, 2025 (GLOBE NEWSWIRE) -- First Merchants Corporation (Nasdaq: FRME) will release its third quarter 2025 financial results on Wednesday, October 22, 2025. The Corporation will host an earnings conference call and webcast at 9:00 a.m. (ET) on Thursday, October 23, 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: (https://register-conf.media-server.com/register/BIf471933f076b43ed86fc41e50789 ...