[Performance Highlights](index=1&type=section&id=Performance%20Highlights) First Merchants Corporation achieved strong Q2 2025 results, marked by significant year-over-year growth in net income and diluted EPS, driven by loan and deposit expansion, margin growth, and capital strength Q2 2025 Key Financial Results | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income to Common Stockholders | $56.4 million | $39.5 million | | Diluted EPS | $0.98 | $0.68 | - CEO Mark Hardwick highlighted the strength and resilience of the business model, citing momentum in loan and deposit growth, expanding margins, disciplined expense management, and a robust capital position as key drivers for delivering **long-term shareholder value**[2](index=2&type=chunk) - Key operational achievements in Q2 2025 include: - **Loan Growth**: Total loans grew **$297.6 million**, or **9.1% annualized**, on a linked quarter basis[7](index=7&type=chunk) - **Deposit Growth**: Total deposits increased **$335.6 million**, or **9.3% annualized**, on a linked quarter basis[7](index=7&type=chunk) - **Capital Strength**: Maintained a strong Common Equity Tier 1 (CET1) Capital Ratio of **11.35%**[7](index=7&type=chunk) - **Share Repurchases**: Repurchased **582,486 shares** for **$22.1 million** during the quarter, totaling **818,480 shares** for **$31.7 million** year-to-date[7](index=7&type=chunk) [Financial Results Analysis](index=1&type=section&id=Financial%20Results%20Analysis) The corporation's financial health improved in Q2 2025, with total assets reaching $18.6 billion, driven by loan and deposit growth, increased net interest income, improved asset quality, and strong capital ratios [Balance Sheet Analysis](index=1&type=section&id=Balance%20Sheet%20Analysis) As of Q2 2025, total assets reached $18.6 billion, with loans growing to $13.3 billion and deposits to $14.8 billion, maintaining a stable loan-to-deposit ratio Key Balance Sheet Items (As of June 30, 2025) | Item | Amount | YoY Change | QoQ Change (Annualized) | | :--- | :--- | :--- | :--- | | Total Assets | $18.6 billion | - | - | | Total Loans | $13.3 billion | +5.2% | +9.1% | | Total Deposits | $14.8 billion | +1.6% | +9.3% | | Investments | $3.4 billion | -9.9% | -5.4% | - The loan-to-deposit ratio remained stable at **90.1%** at the end of the quarter[6](index=6&type=chunk) [Income Statement Analysis](index=2&type=section&id=Income%20Statement%20Analysis) Q2 2025 net interest income rose to $133.0 million, driven by a 9 basis point expansion in net interest margin to 3.25%, while noninterest income remained stable and expenses slightly increased Q2 2025 Income Statement Highlights | Metric | Q2 2025 | YoY Change | QoQ Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $133.0 million | +3.5% | +2.1% | | Net Interest Margin (FTE) | 3.25% | +9 bps | +3 bps | | Noninterest Income | $31.3 million | Stable | +$1.3 million | | Noninterest Expense | $93.6 million | - | +$0.7 million | - The expansion in net interest margin was a result of higher yields on earning assets outpacing the increased yields on interest-bearing liabilities[9](index=9&type=chunk) [Credit Quality](index=2&type=section&id=Credit%20Quality) Asset quality significantly improved in Q2 2025, with non-performing assets to total assets decreasing to 0.36% and a 1.47% Allowance for Credit Losses for loans Credit Quality Metrics (Q2 2025) | Metric | Value | | :--- | :--- | | Allowance for Credit Losses (ACL) - Loans | $195.3 million | | ACL as % of Total Loans | 1.47% | | Provision for Credit Losses | $5.6 million | | Net Charge-offs | $2.3 million | | Non-performing Assets to Total Assets | 0.36% | - The non-performing assets to total assets ratio improved by **11 basis points** on a linked-quarter basis[8](index=8&type=chunk) [Capital Position](index=2&type=section&id=Capital%20Position) The Corporation maintained a strong capital and liquidity position, evidenced by a Common Equity Tier 1 capital ratio of 11.35% and a tangible common equity ratio of 8.92% Key Capital Ratios (Q2 2025) | Ratio | Value | | :--- | :--- | | Common Equity Tier 1 (CET1) Capital Ratio | 11.35% | | Total Risk-Based Capital Ratio | 13.06% | | Tangible Common Equity Ratio | 8.92% | [Financial Statements](index=4&type=section&id=Financial%20Statements) This section provides detailed unaudited consolidated financial statements, including Balance Sheets, Statements of Income, and loan and deposit portfolio breakdowns, for a comprehensive financial overview [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets reached $18.6 billion, driven by increased net loans, with total liabilities at $16.2 billion and stockholders' equity at $2.35 billion Consolidated Balance Sheet Summary (in thousands) | | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$18,592,777** | **$18,303,423** | | Net Loans | $13,101,443 | $12,450,113 | | Total Deposits | $14,797,578 | $14,569,070 | | **Total Liabilities** | **$16,244,825** | **$16,090,898** | | **Total Stockholders' Equity** | **$2,347,952** | **$2,212,525** | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Net income available to common stockholders for Q2 2025 significantly increased to $56.4 million, driven by higher net interest income and a substantially lower provision for credit losses Consolidated Income Statement Summary (Three Months Ended, in thousands) | | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Net Interest Income | $133,014 | $128,571 | | Provision for credit losses | $5,600 | $24,500 | | Noninterest Income | $31,303 | $31,334 | | Noninterest Expenses | $93,598 | $91,413 | | **Net Income Available to Common Stockholders** | **$56,363** | **$39,456** | [Loan and Deposit Composition](index=9&type=section&id=Loan%20and%20Deposit%20Composition) As of June 30, 2025, the $13.3 billion loan portfolio was diversified, with commercial and industrial loans as the largest component, while the $14.8 billion deposit base was led by demand and savings deposits - The largest loan categories as of Q2 2025 were Commercial and industrial loans (**$4.4B**), Residential real estate (**$2.4B**), and Commercial real estate, non-owner occupied (**$2.2B**)[25](index=25&type=chunk) - The deposit base was led by Demand deposits (**$7.8B**) and Savings deposits (**$5.0B**), with the company holding **$1.2 billion** in total brokered deposits[26](index=26&type=chunk) [Key Financial Ratios and Metrics](index=6&type=section&id=Key%20Financial%20Ratios%20and%20Metrics) Q2 2025 saw improved profitability ratios, with ROA at 1.23% and ROE at 9.63%, expanded Net Interest Margin, and significantly reduced net charge-offs and nonperforming assets Key Financial Ratios (Q2 2025 vs Q2 2024) | Ratio | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Return on Average Assets | 1.23% | 0.87% | | Return on Average Stockholders' Equity | 9.63% | 7.16% | | Net Interest Margin (FTE) | 3.25% | 3.16% | | Efficiency Ratio | 53.99% | 53.84% | | Net Charge-offs as % of Avg Loans (Ann.) | 0.07% | 1.26% | Asset Quality Trend | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Nonperforming Assets (NPA) | $67,535 K | $86,888 K | $66,730 K | | NPAs / Actual Assets % | 0.36% | 0.47% | 0.36% | [Non-GAAP Financial Measures](index=12&type=section&id=Non-GAAP%20Financial%20Measures) The company provides non-GAAP reconciliations, showing Q2 2025 GAAP and Adjusted Diluted EPS at $0.98, with FTE Net Interest Margin at 3.25% and Return on Tangible Common Equity at 14.49% - For Q2 2025, there were minimal adjustments between GAAP and Non-GAAP Net Income, resulting in both GAAP and Adjusted Diluted EPS being **$0.98**[29](index=29&type=chunk) Key Non-GAAP Metrics (Q2 2025) | Metric | Value | | :--- | :--- | | Net Interest Margin (FTE) | 3.25% | | Return on Tangible Common Equity | 14.49% | | Efficiency Ratio (Non-GAAP) | 53.99% | [Conference Call and Company Information](index=3&type=section&id=Conference%20Call%20and%20Company%20Information) First Merchants Corporation will host a Q2 2025 earnings conference call on July 24, 2025, as a Muncie, Indiana-based financial holding company whose stock trades on NASDAQ under FRME, with standard forward-looking statement disclaimers - A conference call and webcast to discuss Q2 2025 earnings is scheduled for **9:00 a.m. (ET) on Thursday, July 24, 2025**[12](index=12&type=chunk) - First Merchants Corporation is a financial holding company based in Muncie, Indiana, operating through its full-service bank charter, First Merchants Bank[14](index=14&type=chunk) - The release contains forward-looking statements subject to significant risks and uncertainties, and the company does not undertake any obligation to update them[17](index=17&type=chunk)

Core Insights - First Merchants Corporation reported a strong financial performance in Q2 2025, with net income available to common stockholders reaching $56.4 million, up from $39.5 million in Q2 2024, and diluted earnings per share increasing to $0.98 from $0.68 [2][10]. Financial Performance - Total assets as of June 30, 2025, were $18.6 billion, with total loans amounting to $13.3 billion, reflecting a year-over-year growth of $653.6 million, or 5.2% [3][20]. - Total deposits increased to $14.8 billion, marking a $228.5 million, or 1.6% increase over the past year, and a $335.6 million, or 9.3% annualized increase on a linked quarter basis [5][10]. - Net interest income for the quarter was $133.0 million, up $2.7 million, or 2.1% from the previous quarter, and up $4.4 million, or 3.5% from Q2 2024 [7][10]. - Noninterest income totaled $31.3 million, stable compared to Q2 2024, but increased by $1.3 million from Q1 2025, driven by higher gains on loan sales and treasury management fees [8][10]. Asset Quality - The allowance for credit losses on loans was $195.3 million, representing 1.47% of total loans, with net charge-offs totaling $2.3 million for the quarter [6][19]. - Non-performing assets to total assets decreased to 0.36% from 0.47% in the previous quarter, indicating improved asset quality [6][10]. Capital Position - The Corporation maintained a robust capital position, with a common equity tier 1 capital ratio of 11.35% and a total risk-based capital ratio of 13.06% [9][10]. - Year-to-date, the Corporation repurchased 818,480 shares for a total of $31.7 million, including 582,486 shares for $22.1 million in Q2 2025 [10]. Efficiency Metrics - The efficiency ratio for the quarter was reported at 53.99%, reflecting effective cost management despite a slight increase in noninterest expenses to $93.6 million [9][10].

Core Points - First Merchants Corporation will release its second quarter 2025 financial results on July 23, 2025 [1] - A conference call and webcast will be held on July 24, 2025, at 9:00 a.m. (ET) to discuss the financial results [1] - Participants can register for the call via a provided link to receive a phone number and access code [2] Company Overview - 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 includes a division known as First Merchants Private Wealth Advisors [3] - The company's common stock is traded on the NASDAQ Global Select Market under the symbol FRME [4]

Core Points - First Merchants Corporation has amended the ex-dividend date for its cash dividend from June 5, 2025, to June 6, 2025, while the payment date remains June 20, 2025 [1] Company Overview - First Merchants Corporation is a financial holding company based in Muncie, Indiana, operating one full-service bank charter, First Merchants Bank, and a division called First Merchants Private Wealth Advisors [2] - The common stock of First Merchants Corporation is traded on the NASDAQ Global Select Market under the symbol FRME [3]

Group 1 - First Merchants Corporation (NASDAQ: FRME) has shown strong performance during the bullish outlook period [1] - The focus of Crude Value Insights is on cash flow and companies in the oil and natural gas sector, emphasizing value and growth prospects [1] - Subscribers benefit from a comprehensive stock model account, detailed cash flow analyses of exploration and production firms, and live discussions about the sector [1]

Core Viewpoint - First Merchants Corporation is a century-old financial institution primarily operating in Indiana, with a significant market presence in Michigan and Ohio, holding 78% of its total deposits in Indiana [1] Company Overview - First Merchants Corporation is based in Muncie, Indiana, and has expanded its operations into Michigan and Ohio over time [1] - The company accounts for 78% of its total deposits in Indiana, indicating a strong regional focus [1]

FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from _______ to _______ FIRST MERCHANTS CORPORATION (Exact name of registrant as specified in its charter) | Indiana | | | --- | --- | | (State or other jurisdiction of incorporation) | ...

First Merchants (FRME) Q1 2025 Earnings Call April 24, 2025 10:47 PM ET Company Participants Mark Hardwick - CEOMichael Stewart - PresidentMichele Kawiecki - Executive Vice President & Chief Financial OfficerJohn Martin - Executive VP & Chief Credit OfficerDaniel Tamayo - Vice PresidentDamon Delmonte - Managing DirectorBrian Martin - Director - Banks & Thrifts Conference Call Participants Terry Mcevoy - MD & Research AnalystNathan Race - Managing Director & Senior Research Analyst Operator Thank you for sta ...

Financial Data and Key Metrics Changes - The first quarter of 2025 showed a strong start with a 4.8% annualized loan growth and a 23 basis point increase in return on assets [5] - Total assets reached $18.4 billion, with total loans at $13 billion and total deposits at $14.5 billion [5] - Net income for the first quarter was $54.9 million, an increase of $7.4 million or 15.6% year-over-year [5] - GAAP earnings per share increased to $0.94 from $0.80 a year ago, reflecting a 17.5% increase [6] - Tangible common equity stood at 8.9%, providing optimal capital flexibility [8] Business Line Data and Key Metrics Changes - The commercial segment drove loan growth, increasing by $169 million or a 7% annualized growth rate, with C&I loans growing by $248 million [10] - The consumer portfolio saw a 15% increase in mortgage unit volume and over 30% increase in dollar volume year-over-year [13] - Total deposits declined by 1.6% on an annualized basis, primarily due to a $208 million decline in public funds [15] Market Data and Key Metrics Changes - The company operates primarily in Indiana, Michigan, and Ohio, focusing on commercial banking [9] - The commercial deposit balance decline was largely attributed to public funds, which are high-cost deposits [15] Company Strategy and Development Direction - The company maintains a commercially focused strategy across all business segments [9] - There is a focus on organic growth and high performance, with a selective approach to M&A [41] - The company plans to continue its share repurchase program, having already repurchased $10 million in shares [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about maintaining loan growth despite market volatility and potential impacts from tariffs [42] - The loan pipeline remains strong, with expectations of mid to high single-digit loan growth for the year [42] - Management is actively monitoring the impact of tariffs on their customer base [42] Other Important Information - The company has a new $100 million share repurchase program approved by the board [7] - Noninterest income totaled $30 million, with customer-related fees declining from the previous quarter [26] Q&A Session Summary Question: Expectations on additional charge-offs related to multifamily NPA - Management does not expect any additional loss and is optimistic about the closing of the nonperforming asset [46][47] Question: Outlook on fee income for the second quarter - Management expects mid to high single-digit growth in fee income, with double-digit growth anticipated in mortgage banking [51][52] Question: Impact of fixed-rate loans on loan yields - There are $190 million of fixed-rate loans that will be repricing through the end of 2025, with a rate of about 4.65% [58] Question: Updated outlook on expenses - Guidance remains at 1% to 3% expense growth over the 2024 base, with current trends running ahead of that [66][67] Question: Strategy for cash flows from the securities portfolio - The company is reallocating cash flows to support loan growth rather than reinvesting in securities [68] Question: Thoughts on M&A strategy - The company continues to stay close to potential partners in its primary markets, but the current volatility makes it challenging to create momentum [71] Question: Expectations for margin in the second quarter - Management expects margin to remain stable, with potential for slight expansion depending on Fed actions [76][79] Question: Areas of exposure due to tariffs - Management is analyzing the impact of tariffs on various portfolios but finds it too early to quantify specific risks [100][102]

First Merchants (FRME) Q1 2025 Earnings Call April 24, 2025 11:30 AM ET Company Participants Mark Hardwick - CEOMichael Stewart - PresidentMichele Kawiecki - Executive Vice President & Chief Financial OfficerJohn Martin - Executive VP & Chief Credit OfficerDaniel Tamayo - Vice PresidentDamon Delmonte - Managing DirectorBrian Martin - Director - Banks & Thrifts Conference Call Participants Terry Mcevoy - MD & Research AnalystNathan Race - Managing Director & Senior Research Analyst Operator Thank you for sta ...