Core Insights - First Merchants (FRME) reported a revenue of $172.17 million for the quarter ended December 2025, reflecting a year-over-year decline of 2.8% and an EPS of $0.98 compared to $1.00 a year ago, with a revenue surprise of +3.22% against the Zacks Consensus Estimate of $166.8 million [1] Financial Performance - The company’s efficiency ratio was reported at 54.5%, slightly better than the estimated 55% by analysts [4] - The net interest margin (FTE) stood at 3.3%, exceeding the average estimate of 3.2% [4] - Net charge-offs as a percentage of average loans (annualized) were 0.2%, matching the average estimate [4] - The average balance of total earning assets was $17.65 billion, surpassing the average estimate of $17.57 billion [4] - Total non-interest income reached $33.11 million, above the average estimate of $32.11 million [4] - Net gains and fees on sales of loans were $5.42 million, exceeding the average estimate of $4.93 million [4] - Other income was reported at $1.26 million, slightly below the estimated $1.4 million [4] - Net interest income was $139.06 million, higher than the average estimate of $135.15 million [4] - Other customer fees were $0.32 million, below the average estimate of $0.41 million [4] - Net interest income (FTE) was $145.25 million, compared to the average estimate of $142.06 million [4] - Fiduciary and wealth management fees totaled $9.18 million, slightly above the average estimate of $9.07 million [4] - Service charges on deposit accounts were $8.7 million, slightly below the estimated $8.75 million [4] Stock Performance - Shares of First Merchants have returned -0.4% over the past month, while the Zacks S&P 500 composite has changed by +0.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]