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].

MUNCIE, Ind., Jan. 26, 2026 (GLOBE NEWSWIRE) -- First Merchants Corporation (NASDAQ - FRME) (the "Corporation") Achieved record full‑year results, including net income available to common stockholders of $224.1 million and diluted EPS of $3.88 for 2025. Fourth Quarter 2025 Highlights: Net income available to common stockholders was $56.6 million and diluted earnings per common share totaled $0.99, compared to $56.3 million and $0.98 in the third quarter of 2025, and $63.9 million and $1.10 in the fourth qua ...

Core Insights - The company reported a net income of $200 million for the full year of 2024, with earnings per share at $3.41, indicating a return to pre-Silicon Valley performance levels [1][4] - The tangible common equity ratio improved to 8.81%, and tangible book value per share increased by 25% over the last two years, reaching $26.78 [1][17] - The company achieved a 4% growth in pre-tax pre-provision earnings on a linked basis, supported by a net interest margin improvement of five basis points [1][22] Financial Performance - The fourth quarter earnings per share totaled $1.10, adjusted for a $20 million gain from the sale of branches and an $11.6 million bond loss [2] - Loan growth for the quarter was 6%, aligning with the company's expectations for 2025 [2][6] - Non-interest income increased by $17.9 million, reflecting strong core performance despite losses from bond sales [15][22] Operational Developments - The company completed several upgrades to its technology platforms, including account origination and online banking systems, enhancing client experience [3][5] - The sale of five non-core branches and restructuring of the securities portfolio were completed, contributing to a more focused operational strategy [3][16] - The company maintained a disciplined approach to managing deposit costs, with total deposits growing at a 4.4% annualized rate in the fourth quarter [12][21] Market Position and Strategy - The company is focusing on core markets in Indiana, Ohio, and Michigan, implementing innovative customer acquisition strategies [2][5] - The Commercial and Industrial (C&I) segment remains the largest part of the loan portfolio, comprising 50% of total loans, with strong growth expected in this area [10][25] - The company is optimistic about future growth opportunities in commercial real estate, particularly in multi-family and industrial segments [47][56] Asset Quality and Risk Management - The allowance for credit losses was $192.8 million, with a coverage ratio of 1.5%, indicating strong reserves compared to peers [20] - Non-accrual loans increased by $14.7 million, primarily due to a specific multi-family housing loan, but overall asset quality remains stable [30][32] - The company anticipates charge-offs to remain between 15 and 20 basis points, reflecting a stable credit environment [62]

Core Insights - The company is enhancing its fee income through the introduction of SBA loans and first lien HELOCs, with $8 million in SBA originations in 2025 and over $100 million by First Savings [1][3] - The acquisition of First Savings Financial Group, announced on September 25, adds approximately $2.4 billion in assets and expands the company's presence in Southern Indiana [3][5] - The company reported a 9% loan growth for the quarter, with earnings per share at $0.98 and a return on assets (ROA) of 1.22% [3][4] Financial Performance - Year-to-date net income reached $167.5 million, a 23.5% increase from the previous year, with earnings per share up 25.5% to $2.90 [5] - The efficiency ratio was reported at 55%, indicating strong operational performance [3] - Total revenues in Q3 showed growth in both net interest income and noninterest income, leading to pretax pre-provision earnings of $70.5 million [15] Loan and Deposit Growth - The company achieved $268 million in commercial loan growth for the quarter, with a year-to-date total of $699 million [8] - Consumer segment deposits increased by $96 million, with non-maturity categories growing at nearly 5% annualized [10][11] - The total loan portfolio yield increased to 6.4%, driven by loan originations and refinances [17] Asset Quality - Nonperforming assets (NPA) plus loans 90 days past due totaled 0.51%, down from 0.62% a year ago [6] - The allowance for credit losses (ACL) was robust, with a coverage ratio of 1.43% [17][24] - The company reported net charge-offs of $5.1 million for the quarter, maintaining strong credit quality across its portfolios [17][24] Strategic Outlook - The company is focused on building a community bank model in Southern Indiana, leveraging past successful acquisitions [2] - There is confidence in maintaining loan growth and increasing market share, with stable pipelines for the fourth quarter [9][40] - The company plans to continue optimizing its balance sheet and exploring opportunities for higher-yielding assets [35][67]

Core Insights - The company reported strong loan growth across all segments, with a $262 million increase in commercial loans for the quarter, representing over 10% annualized growth [1]. - Year-to-date net income reached $111.2 million, a 28% increase from the first half of 2024, with earnings per share rising to $1.92, up 30% [2]. - The company maintained a tangible common equity ratio of 8.92%, providing optimal capital flexibility [2]. Financial Performance - The second quarter net income was $56.4 million, a 43% increase from the previous year, supported by improved credit quality and a lower provision for credit losses of $5.6 million compared to $24.5 million in the same quarter last year [3]. - Total revenues in Q2 showed strong growth, with net interest income increasing by $2.7 million and noninterest income by $1.3 million [8]. - The efficiency ratio was reported at 54%, consistent with the company's high-performance goals [3]. Loan and Deposit Growth - The total loan portfolio yield increased by 11 basis points to 6.32%, driven by loan originations and refinancings at an average yield of 7.04% [11]. - The commercial segment was the primary driver of deposit growth, with a total increase of $347 million [6]. - Non-maturity deposit balances increased by $108 million year-to-date, reflecting a focus on core accounts [7]. Asset Quality and Credit Metrics - The company experienced balanced loan growth with a $298 million increase quarter-over-quarter, translating to a 9.2% annualized growth rate [16]. - Net charge-offs were minimal at 0.07% of average loans annualized, indicating stable asset quality [22]. - The allowance for credit losses stood at $195.3 million, with a coverage ratio of 1.47% [12]. Capital Management - The tangible common equity ratio increased by 65 basis points over the last 12 months, reflecting strong capital management [14]. - The company returned capital to shareholders through $36.2 million in share repurchases and $82.3 million in dividends [14]. - The company plans to continue using cash flow from scheduled principal and interest payments to fund loan growth rather than reinvesting in bonds [11]. Future Outlook - The company expects to maintain loan growth and increasing market share activities through the third quarter, supported by a strong pipeline [5]. - Noninterest income is anticipated to grow in the mid-single digits in the back half of the year, despite a modest decline in mortgage activity due to lower rates [27]. - The company remains focused on organic growth while being selective in potential mergers and acquisitions [21].

Core Viewpoint - Analysts forecast that First Merchants (FRME) will report quarterly earnings of $0.96 per share, indicating a year-over-year decline of 4% and revenues of $166.8 million, a decrease of 5.8% compared to the previous year [1]. Earnings Projections - The consensus EPS estimate for the quarter has remained unchanged over the past 30 days, reflecting analysts' reassessment of their initial projections [1][2]. - Revisions to earnings projections are critical for predicting investor behavior regarding the stock [2]. Key Metrics Projections - The consensus estimate for the 'Efficiency Ratio' is 55.0%, up from 48.5% in the same quarter last year [4]. - Analysts expect 'Net Interest Margin (FTE)' to reach 3.2%, slightly down from 3.3% reported in the same quarter last year [4]. Asset and Income Estimates - 'Average Balance - Total Earning Assets' is projected to be $17.57 billion, compared to $17.09 billion in the same quarter last year [5]. - 'Total Non-Interest Income' is expected to be $32.11 million, down from $42.74 million a year ago [5]. Income Components - 'Net gains and fees on sales of loans' are estimated at $4.93 million, down from $5.68 million in the previous year [6]. - 'Net Interest Income' is projected to reach $135.15 million, slightly up from $134.37 million reported last year [6]. - 'Net Interest Income (FTE)' is expected to be $142.06 million, compared to $140.16 million a year ago [7]. Fee Projections - 'Fiduciary and wealth management fees' are projected at $9.07 million, up from $8.67 million in the same quarter last year [7]. - 'Service charges on deposit accounts' are estimated at $8.75 million, compared to $8.12 million a year ago [8]. - 'Card payment fees' are expected to reach $5.06 million, slightly up from $4.96 million reported last year [8]. Stock Performance - First Merchants shares have changed by -2.1% in the past month, while the Zacks S&P 500 composite has moved -0.4% [8].

Group 1 - First Merchants Corporation will release its fourth quarter 2025 financial results on January 26, 2026 [1] - An earnings conference call and webcast is scheduled for January 27, 2026, at 9:00 a.m. (ET) [1] - Participants can register for the conference call via a provided link to receive a phone number and access code [2] Group 2 - First Merchants Corporation is a financial holding company based in Muncie, Indiana, operating one full-service bank charter, First Merchants Bank [3] - The bank also operates a division known as First Merchants Private Wealth Advisors [3] - The common stock of First Merchants Corporation is traded on the NASDAQ Global Select Market under the symbol FRME [4]

Group 1: HP Inc. - HP has a history of increasing dividends for nine consecutive years, with the latest quarterly payout raised from $0.2894 to $0.30, resulting in an annual figure of $1.20 per share [3] - The current dividend yield for HP is 4.93% [3] - HP's annual revenue as of July 31 is reported at $54.71 billion, with Q4 2025 revenues of $14.64 billion, slightly below the consensus estimate of $14.70 billion, while EPS of $0.93 exceeded the consensus of $0.92 [3] Group 2: Black Hills Corp. - Black Hills has increased its dividends for 55 consecutive years, with the most recent quarterly payout raised from $0.65 to $0.676 per share, equating to an annual figure of $2.70 per share [5] - The current dividend yield for Black Hills stands at 3.76% [5] - The company's annual revenue as of September 30 is $2.27 billion, with Q3 2025 revenues of $430.20 million, which missed the consensus estimate of $440.96 million, while EPS of $0.45 surpassed the consensus of $0.42 [6] Group 3: First Merchants Corp. - First Merchants is a financial holding company that owns First Merchants Bank, providing various financial services including commercial and consumer banking, wealth management, and mortgage lending [7]

Core Insights - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues [1] Group 1 - The article suggests that users may face blocks if they have an ad-blocker enabled [1] - It advises users to disable their ad-blocker and refresh the page to proceed [1]

Core Viewpoint - First Merchants (FRME) shares have increased by 2.4% recently, closing at $36.15, with analysts suggesting a potential upside of 26.1% based on a mean price target of $45.6 [1][11]. Price Targets and Analyst Consensus - The mean estimate for FRME includes five short-term price targets with a standard deviation of $2.7, indicating a range of estimates from $43.00 (19% increase) to $50.00 (38.3% increase) [2][11]. - A low standard deviation among price targets suggests strong agreement among analysts regarding the stock's price movement, which can be a useful starting point for further research [9][10]. Earnings Estimates and Market Sentiment - Analysts have shown increasing optimism about FRME's earnings prospects, as evidenced by a positive trend in earnings estimate revisions, which correlates with potential stock price increases [4][11]. - The Zacks Consensus Estimate for the current year has risen by 0.7% over the past month, with three estimates increasing and no negative revisions [12][13]. Zacks Rank and Investment Potential - FRME holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for upside in the near term [13][14].