First Merchants (FRME) Reports Q3 Earnings: What Key Metrics Have to Say

Core Insights - First Merchants (FRME) reported revenue of $166.14 million for Q3 2025, a year-over-year increase of 6.5%, with an EPS of $0.99 compared to $0.95 a year ago, indicating a positive trend in earnings [1] - The revenue fell short of the Zacks Consensus Estimate by 0.07%, while the EPS exceeded the consensus estimate by 3.13% [1] Financial Performance Metrics - Efficiency Ratio stood at 55.1%, slightly above the average estimate of 54.6% from three analysts [4] - Net Interest Margin (FTE) was reported at 3.2%, matching the average estimate from three analysts [4] - Net Charge-offs as a percentage of Average Loans (Annualized) was 0.2%, consistent with the average estimate from two analysts [4] - Average Balance of Total Earning Assets was $17.28 billion, slightly below the average estimate of $17.32 billion from two analysts [4] - Total Non-Interest Income was $32.48 million, below the average estimate of $32.86 million from three analysts [4] - Net gains and fees on sales of loans were $4.98 million, compared to the average estimate of $5.9 million from three analysts [4] - Other income was reported at $1.55 million, exceeding the average estimate of $1.05 million from two analysts [4] - Net Interest Income was $133.67 million, slightly above the average estimate of $133.49 million from two analysts [4] - Net Interest Income (FTE) was $139.87 million, below the average estimate of $140.33 million from two analysts [4] - Fiduciary and wealth management fees were $8.84 million, below the average estimate of $9.06 million from two analysts [4] - Service charges on deposit accounts were $8.92 million, above the average estimate of $8.53 million from two analysts [4] - Derivative hedge fees were $1.1 million, exceeding the average estimate of $0.75 million from two analysts [4] Stock Performance - Over the past month, First Merchants' shares have returned -6.7%, contrasting with the Zacks S&P 500 composite's +1.1% change [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), suggesting potential for outperformance in the near term [3]