First Merchants (US:FRME) Globenewswireยท2025-10-22 20:05Core 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].