First Merchants Corporation Announces Second Quarter 2025 Earnings Per Share
MUNCIE, Ind., July 23, 2025 (GLOBE NEWSWIRE) -- First Merchants Corporation (NASDAQ - FRME)
Second Quarter 2025 Highlights:
Net income available to common stockholders was $56.4 million and diluted earnings per common share totaled $0.98 in the second quarter of 2025, compared to $39.5 million and $0.68 in the second quarter of 2024, and $54.9 million and $0.94 in the first quarter of 2025.
Robust capital position with Common Equity Tier 1 Capital Ratio of 11.35%.
Repurchased 818,480 shares totaling $31.7 million year-to-date; Repurchased 582,486 shares totaling $22.1 million during the second quarter.
Total loans grew $297.6 million, or 9.1% annualized, on a linked quarter basis, and $653.6 million, or 5.2%, during the last twelve months.
Total deposits increased $335.6 million, or 9.3% annualized, on a linked quarter basis.
Nonperforming assets to total assets were 36 basis points compared to 47 basis points on a linked quarter basis.
The efficiency ratio totaled 53.99% for the quarter.
"Our strong balance sheet and earnings growth in the first half of the year underscore the strength and resilience of our business model," said Mark Hardwick, Chief Executive Officer of First Merchants Bank. "With continued momentum in loan and deposit growth, expanding margins, disciplined expense management, and a robust capital position, we are well-positioned to deliver long-term value for our shareholders. We remain committed to supporting our clients and communities while navigating a dynamic economic environment with confidence and clarity."
Second Quarter Financial Results:
First Merchants Corporation (the "Corporation) reported second quarter 2025 net income available to common stockholders of $56.4 million compared to $39.5 million during the same period in 2024. Diluted earnings per common share for the period totaled $0.98 per share compared to the second quarter of 2024 result of $0.68 per share.
Total assets equaled $18.6 billion as of quarter-end and loans totaled $13.3 billion. During the past twelve months, total loans grew by $653.6 million, or 5.2%. On a linked quarter basis, loans grew $297.6 million, or 9.1% with growth primarily in Commercial & Industrial loans.
Investments, totaling $3.4 billion, decreased $372.1 million, or 9.9%, during the last twelve months and decreased $46.2 million, or 5.4% annualized, on a linked quarter basis. The decline in the last twelve months reflected sales of available for sale securities in 2024 totaling $268.5 million.
Total deposits equaled $14.8 billion as of quarter-end and increased by $228.5 million, or 1.6%, over the past twelve months. Total deposits increased $335.6 million, or 9.3% annualized, on a linked quarter basis. The loan to deposit ratio of 90.1% at period end remained stable on a linked quarter basis.
The Corporation's Allowance for Credit Losses, Loans (ACL) totaled $195.3 million as of quarter-end, or 1.47% of total loans. Net charge-offs totaled $2.3 million and provision for credit losses of $5.6 million was recorded during the quarter. Reserves for unfunded commitments totaling $18.0 million remain unchanged from the previous quarter. Non-performing assets to total assets were 0.36% for the second quarter of 2025, a decrease of 11 basis points compared to 0.47% in the linked quarter.
Net interest income, totaling $133.0 million for the quarter, increased $2.7 million, or 2.1%, compared to prior quarter and increased $4.4 million, or 3.5% compared to the second quarter of 2024. Fully taxable equivalent net interest margin was 3.25%, an increase of three basis points compared to the first quarter of 2025 and an increase of nine basis points compared to the second quarter of 2024. During the quarter, higher yields on earnings assets outpaced increased yields on interest bearing liabilities resulting in margin expansion.
Noninterest income totaled $31.3 million for the quarter, an increase of $1.3 million, compared to the first quarter of 2025 and was stable compared to the second quarter of 2024. The increase over first quarter of 2025 was driven primarily by higher gains on the sales of loans, treasury management fees, derivative hedge fees, and card payment fees offset by a decrease in other income associated with CRA investments.
Noninterest expense totaled $93.6 million for the quarter, an increase of $0.7 million from the first quarter of 2025. The increase was from higher marketing and data processing costs.
The Corporation's total risk-based capital ratio equaled 13.06%, the common equity tier 1 capital ratio equaled 11.35%, and the tangible common equity ratio totaled 8.92%. These ratios continue to reflect the Corporation's strong liquidity and capital positions.
CONFERENCE CALL
First Merchants Corporation will conduct a second quarter earnings conference call and web cast at 9:00 a.m. (ET) on Thursday, July 24, 2025.
To access via phone, participants will need to register using the following link where they will be provided a phone number and access code: (https://register-conf.media-server.com/register/BI605c2e360ce04cfc9c4221bda7f67a49)
To view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/ced58zg3) during the time of the call. A replay of the webcast will be available until July 24, 2026.
Detailed financial results are reported on the attached pages.
About First Merchants Corporation
First Merchants Corporation is a financial holding company headquartered in Muncie, Indiana. The Corporation has one full-service bank charter, First Merchants Bank. The Bank also operates as First Merchants Private Wealth Advisors (as a division of First Merchants Bank).
First Merchants Corporation's common stock is traded on the NASDAQ Global Select Market System under the symbol FRME. Quotations are carried in daily newspapers and can be found on the company's Internet web page (http://www.firstmerchants.com).
FIRST MERCHANTS and the Shield Logo are federally registered trademarks of First Merchants Corporation.
Forward-Looking Statements
This release contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can often, but not always, be identified by the use of words like "believe", "continue", "pattern", "estimate", "project", "intend", "anticipate", "expect" and similar expressions or future or conditional verbs such as "will", "would", "should", "could", "might", "can", "may", or similar expressions. These statements include statements about First Merchants' goals, intentions and expectations; statements regarding the First Merchants' business plan and growth strategies; statements regarding the asset quality of First Merchants' loan and investment portfolios; and estimates of First Merchants' risks and future costs and benefits. These forward-looking statements are subject to significant risks, assumptions and uncertainties that may cause results to differ materially from those set forth in forward-looking statements, including, among other things: possible changes in monetary and fiscal policies, and laws and regulations; the effects of easing restrictions on participants in the financial services industry; the cost and other effects of legal and administrative cases; possible changes in the credit worthiness of customers and the possible impairment of collectability of loans; fluctuations in market rates of interest; competitive factors in the banking industry; changes in the banking legislation or regulatory requirements of federal and state agencies applicable to bank holding companies and banks like First Merchants' affiliate bank; continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; changes in market, economic, operational, liquidity (including the ability to grow and maintain core deposits and retain large, uninsured deposits), credit and interest rate risks associated with the First Merchants' business; and other risks and factors identified in each of First Merchants' filings with the Securities and Exchange Commission. First Merchants does not undertake any obligation to update any forward-looking statements, whether written or oral, relating to the matters discussed in this press release. In addition, First Merchants' past results of operations do not necessarily indicate its anticipated future results.
CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)
June 30,
2025
2024
ASSETS
Cash and due from banks
$
81,567
$
105,372
Interest-bearing deposits
223,343
168,528
Investment securities available for sale
1,358,130
1,618,893
Investment securities held to maturity, net of allowance for credit losses
2,022,826
2,134,195
Loans held for sale
28,783
32,292
Loans
13,296,759
12,639,650
Less: Allowance for credit losses - loans
(195,316
)
(189,537
)
Net loans
13,101,443
12,450,113
Premises and equipment
122,808
133,245
Federal Home Loan Bank stock
47,290
41,738
Interest receivable
93,258
97,546
Goodwill
712,002
712,002
Other intangibles
16,797
23,371
Cash surrender value of life insurance
305,695
306,379
Other real estate owned
177
4,824
Tax asset, deferred and receivable
97,749
107,080
Other assets
380,909
367,845
TOTAL ASSETS
$
18,592,777
$
18,303,423
LIABILITIES
Deposits:
Noninterest-bearing
$
2,197,416
$
2,303,313
Interest-bearing
12,600,162
12,265,757
Total Deposits
14,797,578
14,569,070
Borrowings:
Federal funds purchased
85,000
147,229
Securities sold under repurchase agreements
114,758
100,451
Federal Home Loan Bank advances
898,702
832,703
Subordinated debentures and other borrowings
62,617
93,589
Total Borrowings
1,161,077
1,173,972
Interest payable
16,174
18,554
Other liabilities
269,996
329,302
Total Liabilities
16,244,825
16,090,898
STOCKHOLDERS' EQUITY
Preferred Stock, $1,000 par value, $1,000 liquidation value:
Authorized -- 600 cumulative shares
Issued and outstanding - 125 cumulative shares
125
125
Preferred Stock, Series A, no par value, $2,500 liquidation preference:
Authorized -- 10,000 non-cumulative perpetual shares
Issued and outstanding - 10,000 non-cumulative perpetual shares
25,000
25,000
Common Stock, $.125 stated value:
Authorized -- 100,000,000 shares
Issued and outstanding - 57,272,433 and 58,045,653 shares
7,159
7,256
Additional paid-in capital
1,163,170
1,191,193
Retained earnings
1,342,473
1,200,930
Accumulated other comprehensive loss
(189,975
)
(211,979
)
Total Stockholders' Equity
2,347,952
2,212,525
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
18,592,777
$
18,303,423
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
Six Months Ended
(Dollars In Thousands, Except Per Share Amounts)
June 30,
June 30,
2025
2024
2025
2024
INTEREST INCOME
Loans:
Taxable
$
195,173
$
201,413
$
382,901
$
399,436
Tax-exempt
10,805
8,430
21,337
16,620
Investment securities:
Taxable
8,266
9,051
16,638
17,799
Tax-exempt
12,516
13,613
25,033
27,224
Deposits with financial institutions
1,892
2,995
4,264
9,488
Federal Home Loan Bank stock
1,083
879
2,080
1,714
Total Interest Income
229,735
236,381
452,253
472,281
INTEREST EXPENSE
Deposits
84,241
99,151
164,788
197,436
Federal funds purchased
965
126
1,777
126
Securities sold under repurchase agreements
663
645
1,405
1,677
Federal Home Loan Bank advances
9,714
6,398
19,078
13,171
Subordinated debentures and other borrowings
1,138
1,490
1,921
4,237
Total Interest Expense
96,721
107,810
188,969
216,647
NET INTEREST INCOME
133,014
128,571
263,284
255,634
Provision for credit losses
5,600
24,500
9,800
26,500
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES
127,414
104,071
253,484
229,134
NONINTEREST INCOME
Service charges on deposit accounts
8,566
8,214
16,638
16,121
Fiduciary and wealth management fees
8,831
8,825
17,475
17,025
Card payment fees
4,932
4,739
9,458
9,239
Net gains and fees on sales of loans
5,849
5,141
10,871
8,395
Derivative hedge fees
831
489
1,235
752
Other customer fees
401
460
816
887
Earnings on cash surrender value of life insurance
1,913
1,929
4,092
3,521
Net realized losses on sales of available for sale securities
(1
)
(49
)
(8
)
(51
)
Other income (loss)
(19
)
1,586
774
2,083
Total Noninterest Income
31,303
31,334
61,351
57,972
NONINTEREST EXPENSES
Salaries and employee benefits
54,527
52,214
109,509
110,507
Net occupancy
6,845
6,746
14,061
14,058
Equipment
6,927
6,599
13,935
12,825
Marketing
1,997
1,773
3,350
2,971
Outside data processing fees
7,107
7,072
13,036
13,961
Printing and office supplies
272
354
619
707
Intangible asset amortization
1,505
1,771
3,031
3,728
FDIC assessments
3,552
3,278
7,200
7,565
Other real estate owned and foreclosure expenses
29
373
629
907
Professional and other outside services
3,741
3,822
7,002
7,774
Other expenses
7,096
7,411
14,128
13,345
Total Noninterest Expenses
93,598
91,413
186,500
188,348
INCOME BEFORE INCOME TAX
65,119
43,992
128,335
98,758
Income tax expense
8,287
4,067
16,164
10,892
NET INCOME
56,832
39,925
112,171
87,866
Preferred stock dividends
469
469
938
938
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS
$
56,363
$
39,456
$
111,233
$
86,928
PER SHARE DATA:
Basic Net Income Available to Common Stockholders
$
0.98
$
0.68
$
1.93
$
1.48
Diluted Net Income Available to Common Stockholders
$
0.98
$
0.68
$
1.92
$
1.48
Cash Dividends Paid to Common Stockholders
$
0.36
$
0.35
$
0.71
$
0.69
Tangible Common Book Value Per Share
$
27.90
$
25.10
$
27.90
$
25.10
Average Diluted Common Shares Outstanding (in thousands)
57,773
58,328
58,005
58,800
FINANCIAL HIGHLIGHTS
(Dollars In Thousands)
Three Months Ended
Six Months Ended
June 30,
June 30,
2025
2024
2025
2024
NET CHARGE-OFFS
$
2,315
$
39,644
$
7,241
$
41,897
AVERAGE BALANCES:
Total Assets
$
18,508,785
$
18,332,159
$
18,425,723
$
18,381,340
Total Loans
13,211,729
12,620,530
13,077,288
12,548,798
Total Earning Assets
17,158,984
17,013,984
17,060,278
17,068,917
Total Deposits
14,632,113
14,895,867
14,526,314
14,888,536
Total Stockholders' Equity
2,340,010
2,203,361
2,340,440
2,222,750
FINANCIAL RATIOS:
Return on Average Assets
1.23
%
0.87
%
1.22
%
0.96
%
Return on Average Stockholders' Equity
9.63
7.16
9.51
7.82
Return on Tangible Common Stockholders' Equity
14.49
11.29
14.30
12.26
Average Earning Assets to Average Assets
92.71
92.81
92.59
92.86
Allowance for Credit Losses - Loans as % of Total Loans
1.47
1.50
1.47
1.50
Net Charge-offs as % of Average Loans (Annualized)
0.07
1.26
0.11
0.67
Average Stockholders' Equity to Average Assets
12.64
12.02
12.70
12.09
Tax Equivalent Yield on Average Earning Assets
5.50
5.69
5.45
5.67
Interest Expense/Average Earning Assets
2.25
2.53
2.22
2.54
Net Interest Margin (FTE) on Average Earning Assets
3.25
3.16
3.23
3.13
Efficiency Ratio
53.99
53.84
54.26
56.47
ASSET QUALITY
(Dollars In Thousands)
June 30,
March 31,
December 31,
September 30,
June 30,
2025
2025
2024
2024
2024
Nonaccrual Loans
$
67,358
$
81,922
$
73,773
$
59,088
$
61,906
Other Real Estate Owned and Repossessions
177
4,966
4,948
5,247
4,824
Nonperforming Assets (NPA)
67,535
86,888
78,721
64,335
66,730
90+ Days Delinquent
4,443
4,280
5,902
14,105
1,686
NPAs & 90 Day Delinquent
$
71,978
$
91,168
$
84,623
$
78,440
$
68,416
Allowance for Credit Losses - Loans
$
195,316
$
192,031
$
192,757
$
187,828
$
189,537
Quarterly Net Charge-offs
2,315
4,926
771
6,709
39,644
NPAs / Actual Assets %
0.36
%
0.47
%
0.43
%
0.35
%
0.36
%
NPAs & 90 Day / Actual Assets %
0.39
%
0.49
%
0.46
%
0.43
%
0.37
%
NPAs / Actual Loans and OREO %
0.51
%
0.67
%
0.61
%
0.51
%
0.53
%
Allowance for Credit Losses - Loans / Actual Loans (%)
1.47
%
1.47
%
1.50
%
1.48
%
1.50
%
Quarterly Net Charge-offs as % of Average Loans (Annualized)
0.07
%
0.15
%
0.02
%
0.21
%
1.26
%
CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)
June 30,
March 31,
December 31,
September 30,
June 30,
2025
2025
2024
2024
2024
ASSETS
Cash and due from banks
$
81,567
$
86,113
$
87,616
$
84,719
$
105,372
Interest-bearing deposits
223,343
331,534
298,891
359,126
168,528
Investment securities available for sale
1,358,130
1,378,489
1,386,475
1,553,496
1,618,893
Investment securities held to maturity, net of allowance for credit losses
2,022,826
2,048,632
2,074,220
2,108,649
2,134,195
Loans held for sale
28,783
23,004
18,663
40,652
32,292
Loans
13,296,759
13,004,905
12,854,359
12,646,808
12,639,650
Less: Allowance for credit losses - loans
(195,316
)
(192,031
)
(192,757
)
(187,828
)
(189,537
)
Net loans
13,101,443
12,812,874
12,661,602
12,458,980
12,450,113
Premises and equipment
122,808
128,749
129,743
129,582
133,245
Federal Home Loan Bank stock
47,290
45,006
41,690
41,716
41,738
Interest receivable
93,258
88,352
91,829
92,055
97,546
Goodwill
712,002
712,002
712,002
712,002
712,002
Other intangibles
16,797
18,302
19,828
21,599
23,371
Cash surrender value of life insurance
305,695
304,918
304,906
304,613
306,379
Other real estate owned
177
4,966
4,948
5,247
4,824
Tax asset, deferred and receivable
97,749
87,665
92,387
86,732
107,080
Other assets
380,909
369,181
387,169
348,384
367,845
TOTAL ASSETS
$
18,592,777
$
18,439,787
$
18,311,969
$
18,347,552
$
18,303,423
LIABILITIES
Deposits:
Noninterest-bearing
$
2,197,416
$
2,185,057
$
2,325,579
$
2,334,197
$
2,303,313
Interest-bearing
12,600,162
12,276,921
12,196,047
12,030,903
12,265,757
Total Deposits
14,797,578
14,461,978
14,521,626
14,365,100
14,569,070
Borrowings:
Federal funds purchased
85,000
185,000
99,226
30,000
147,229
Securities sold under repurchase agreements
114,758
122,947
142,876
124,894
100,451
Federal Home Loan Bank advances
898,702
972,478
822,554
832,629
832,703
Subordinated debentures and other borrowings
62,617
62,619
93,529
93,562
93,589
Total Borrowings
1,161,077
1,343,044
1,158,185
1,081,085
1,173,972
Deposits and other liabilities held for sale
—
—
—
288,476
