MUNCIE, Ind., Oct. 22, 2025 (GLOBE NEWSWIRE) -- First Merchants Corporation (NASDAQ - FRME) (the "Corporation")

Third Quarter 2025 Highlights:

  • Net income available to common stockholders was $56.3 million and diluted earnings per common share totaled $0.98 in the third quarter of 2025, compared to $48.7 million and $0.84 in the third quarter of 2024, and $56.4 million and $0.98 in the second quarter of 2025.
  • Robust capital position with Common Equity Tier 1 Capital Ratio of 11.34% and Tangible Common Equity to Tangible Assets Ratio of 9.18%.
  • Repurchased 939,271 shares totaling $36.5 million year-to-date; repurchased 162,474 shares totaling $6.5 million during the third quarter.
  • Total loans grew $288.8 million, or 8.7% annualized, on a linked quarter basis, and $926.9 million, or 7.3%, during the last twelve months.
  • Total deposits increased $72.4 million, or 2.0% annualized, on a linked quarter basis.
  • Nonperforming assets to total assets were 36 basis points and flat compared to prior quarter.
  • The efficiency ratio totaled 55.09% for the quarter or 54.56% 1 excluding $0.9 million of non-core charges incurred during the quarter.
  • Announced the acquisition of First Savings Financial Group, Inc. on September 25, 2025, adding approximately $2.4 billion in assets and expanding the Corporation's presence into Southern Indiana and the Louisville MSA.

"Our strong year-to-date balance sheet and earnings performance underscore the strength and resilience of our business model. Our return on assets, return on tangible capital, and efficiency ratio are in the top-quartile relative to our peers, reflecting disciplined execution and operational excellence," said Mark Hardwick, Chief Executive Officer. "The pending acquisition of First Savings Financial Group marks a strategic expansion into Southern Indiana and the Louisville metropolitan area, adding approximately $2.4 billion in assets and enhancing our ability to serve Indiana, Ohio, and Michigan while delivering sustainable long-term growth."

Third Quarter Financial Results:

First Merchants Corporation (the “Corporation") reported third quarter 2025 net income available to common stockholders of $56.3 million compared to $48.7 million during the same period in 2024. Diluted earnings per common share for the period totaled $0.98 compared to $0.84 in the third quarter of 2024. Adjusted diluted earnings per common share 1 for the third quarter 2025 totaled $0.99, up from $0.95 in the prior year period. Third quarter 2025 results included $0.9 million in pre-tax acquisition-related and other non-core expenses, while the third quarter 2024 included a $9.1 million pre-tax loss related to the repositioning of the available-for-sale securities portfolio.

On September 25, 2025, the Corporation signed a definitive agreement to acquire First Savings Financial Group, Inc., (“First Savings”), in an all-stock transaction that was valued at approximately $241.3 million on the day of announcement. Headquartered in Jeffersonville, Indiana, First Savings operates 16 banking center locations in southern Indiana. First Savings had total assets of $2.4 billion, total loans of $1.9 billion, and total deposits of $1.7 billion as of June 30, 2025. The transaction is expected to close in the first quarter of 2026.

Total assets of the Corporation equaled $18.8 billion as of quarter-end and loans totaled $13.6 billion. During the past twelve months, total loans grew by $926.9 million, or 7.3%. On a linked quarter basis, loans grew $288.8 million, or 8.7% annualized, with growth primarily in Commercial & Industrial loans.

Investments, totaling $3.4 billion, decreased $279.8 million, or 7.6%, during the last twelve months and increased $1.4 million on a linked quarter basis. The modest increase during the quarter was due to an increase in the securities portfolio valuation offset by principal paydowns and maturities.

Total deposits equaled $14.9 billion as of quarter-end and increased by $504.9 million, or 3.5%, over the past twelve months. On a linked quarter basis, deposits increased $72.4 million, or 2.0% annualized. The loan to deposit ratio increased to 91.6% at period end from 90.1% in the prior quarter.

The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $194.5 million as of quarter-end, or 1.43% of total loans, a decrease of $0.8 million from prior quarter. Net charge-offs totaled $5.1 million and provision for credit losses of $4.3 million was recorded during the quarter. Reserves for unfunded commitments totaled $18.0 million and remained unchanged from the prior quarter. Non-performing assets to total assets were 0.36% for the third quarter of 2025, consistent with the prior quarter, reflecting continued strong credit performance.

Net interest income, totaling $133.7 million for the quarter, increased $0.7 million, or 0.5%, compared to prior quarter and increased $2.6 million, or 1.9%, compared to the third quarter of 2024. Fully tax equivalent net interest margin was 3.24%, a decrease of one basis point compared to prior quarter, and an increase of one basis point compared to the third quarter of 2024.

Noninterest income totaled $32.5 million for the quarter, an increase of $1.2 million, or 3.8%, compared to the second quarter of 2025 and an increase of $7.6 million, or 30.6%, from the third quarter of 2024. The increase over second quarter of 2025 was driven primarily by the recording of a $0.9 million negative valuation adjustment to a CRA investment in the second quarter. Customer related fees were stable on a linked quarter basis. The increase from the third quarter of 2024 was driven by realized losses of $9.1 million on sales of available for sale securities recorded in the third quarter of the prior year.

Noninterest expense totaled $96.6 million for the quarter, an increase of $3.0 million from the second quarter of 2025 and an increase of $1.9 million from the third quarter of 2024. The linked quarter increase was driven by higher salaries and incentives and $0.6 million of severance.

The Corporation’s total risk-based capital ratio equaled 13.04%, common equity tier 1 capital ratio equaled 11.34%, and the tangible common equity ratio totaled 9.18%. These ratios continue to reflect the Corporation’s robust capital position.

1 See “Non-GAAP Financial Information” for reconciliation

CONFERENCE CALL

First Merchants Corporation will conduct a third quarter earnings conference call and webcast at 9:00 a.m. (ET) on Thursday, October 23, 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/BIf471933f076b43ed86fc41e507892de6 )

To view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/b8bccx5o) during the time of the call. A replay of the webcast will be available until October 23, 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 news 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 forward- looking statements include, but are not limited to, statements relating to the expected timing and benefits of the proposed merger between First Merchants and First Savings, including future financial and operating results, cost savings, enhanced revenues, and accretion/dilution to reported earnings that may be realized from the proposed merger, as well as other statements of expectations regarding the proposed merger, and other statements of 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, whether with respect to the proposed merger or otherwise. 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: the risk that the businesses of First Merchants and First Savings will not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; expected revenue synergies and cost savings from the proposed merger may not be fully realized or realized within the expected time frame; revenues following the proposed merger may be lower than expected; customer and employee relationships and business operations may be disrupted by the proposed merger; the ability to obtain required regulatory approvals or the approval of First Savings’ common shareholders, and the ability to complete the proposed merger on the expected timeframe; 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 First Merchants’ business; the impacts of epidemics, pandemics or other infectious disease outbreaks; and other risks and factors identified in each of First Merchants’ filings with the SEC. Neither First Merchants nor First Savings undertakes any obligation to update any forward-looking statement, whether written or oral, relating to the matters discussed in this news release. In addition, the companies’ respective past results of operations do not necessarily indicate their anticipated future results, whether or not the proposed merger is completed.

CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars In Thousands, Except Per Share Amounts) September 30,
2025 2024
ASSETS
Cash and due from banks $ 88,079 $ 84,719
Interest-bearing deposits 168,706 359,126
Investment securities available for sale 1,386,903 1,553,496
Investment securities held to maturity, net of allowance for credit losses 1,995,488 2,108,649
Loans held for sale 23,190 40,652
Loans 13,591,174 12,646,808
Less: Allowance for credit losses - loans (194,468 ) (187,828 )
Net loans 13,396,706 12,458,980
Premises and equipment 121,771 129,582
Federal Home Loan Bank stock 47,264 41,716
Interest receivable 89,102 92,055
Goodwill 712,002 712,002
Other intangibles 15,298 21,599
Cash surrender value of life insurance 306,583 304,613
Other real estate owned 1,270 5,247
Tax asset, deferred and receivable 89,758 86,732
Other assets 369,509 348,384
TOTAL ASSETS $ 18,811,629 $ 18,347,552
LIABILITIES
Deposits:
Noninterest-bearing $ 2,100,570 $ 2,334,197
Interest-bearing 12,769,409 12,030,903
Total Deposits 14,869,979 14,365,100
Borrowings:
Federal funds purchased 199,370 30,000
Securities sold under repurchase agreements 122,226 124,894
Federal Home Loan Bank advances 798,626 832,629
Subordinated debentures and other borrowings 57,632 93,562
Total Borrowings 1,177,854 1,081,085
Deposits and other liabilities held for sale — 288,476
Interest payable 18,240 18,089
Other liabilities 333,154 292,429
Total Liabilities 16,399,227 16,045,179
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, $0.125 stated value:
Authorized -- 100,000,000 shares Issued and outstanding - 57,192,497 and 58,117,115 shares 7,149 7,265
Additional paid-in capital 1,158,026 1,192,683
Retained earnings 1,377,966 1,229,125
Accumulated other comprehensive loss (155,864 ) (151,825 )
Total Stockholders' Equity 2,412,402 2,302,373
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 18,811,629 $ 18,347,552


CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended Nine Months Ended
(Dollars In Thousands, Except Per Share Amounts) September 30, September 30,
2025
2024 2025 2024
INTEREST INCOME
Loans:
Taxable $ 200,406 $ 206,680 $ 583,307 $ 606,116
Tax-exempt 11,173 8,622 32,510 25,242
Investment securities:
Taxable 8,288 9,263 24,926 27,062
Tax-exempt 12,460 13,509 37,493 40,733
Deposits with financial institutions 1,676 2,154 5,940 11,642
Federal Home Loan Bank stock 1,092 855 3,172 2,569
Total Interest Income 235,095 241,083 687,348 713,364
INTEREST EXPENSE
Deposits 90,821 98,856 255,609 296,292
Federal funds purchased 224 329 2,001 455
Securities sold under repurchase agreements 654 700 2,059 2,377
Federal Home Loan Bank advances 8,638 8,544 27,716 21,715
Subordinated debentures and other borrowings 1,093 1,544 3,014 5,781
Total Interest Expense 101,430 109,973 290,399 326,620
NET INTEREST INCOME 133,665 131,110 396,949 386,744
Provision for credit losses 4,300 5,000 14,100 31,500
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 129,365 126,110 382,849 355,244
NONINTEREST INCOME
Service charges on deposit accounts 8,921 8,361 25,559 24,482
Fiduciary and wealth management fees 8,842 8,525 26,317 25,550
Card payment fees 5,007 5,121 14,465 14,360
Net gains and fees on sales of loans 4,983 6,764 15,854 15,159
Derivative hedge fees 1,097 736 2,332 1,488
Other customer fees 414 344 1,230 1,231
Earnings on bank-owned life insurance 1,667 2,755 5,759 6,276
Net realized losses on sales of available for sale securities — (9,114 ) (8 ) (9,165 )
Other income 1,546 1,374 2,320 3,457
Total Noninterest Income 32,477 24,866 93,828 82,838
NONINTEREST EXPENSES
Salaries and employee benefits 57,317 55,223 166,826 165,730
Net occupancy 7,057 6,994 21,118 21,052
Equipment 6,998 6,949 20,933 19,774
Marketing 2,120 1,836 5,470 4,807
Outside data processing fees 6,943 7,150 19,979 21,111
Printing and office supplies 311 378 930 1,085
Intangible asset amortization 1,499 1,772 4,530 5,500
FDIC assessments 3,526 3,720 10,726 11,285
Other real estate owned and foreclosure expenses 121 942 750 1,849
Professional and other outside services 3,718 3,035 10,720 10,809
Other expenses 6,951 6,630 21,079 19,975
Total Noninterest Expenses 96,561 94,629 283,061 282,977
INCOME BEFORE INCOME TAX 65,281 56,347 193,616 155,105
Income tax expense 8,516 7,160 24,680 18,052
NET INCOME 56,765 49,187 168,936 137,053
Preferred stock dividends 468 468 1,406 1,406
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 56,297 $ 48,719 $ 167,530 $ 135,647
PER SHARE DATA:
Basic Net Income Available to Common Stockholders $ 0.98 $ 0.84 $ 2.91 $ 2.32
Diluted Net Income Available to Common Stockholders $ 0.98 $ 0.84 $ 2.90 $ 2.31
Cash Dividends Paid to Common Stockholders $ 0.36 $ 0.35 $ 1.07 $ 1.04
Tangible Common Book Value Per Share $ 29.08 $ 26.64 $ 29.08 $ 26.64
Average Diluted Common Shares Outstanding (in thousands) 57,448 58,289 57,817 58,629


FINANCIAL HIGHLIGHTS
(Dollars In Thousands) Three Months Ended Nine Months Ended
September 30, September 30,
2025 2024 2025 2024
NET CHARGE-OFFS $ 5,148 $ 6,709 $ 12,389 $ 48,606
AVERAGE BALANCES:
Total Assets $ 18,637,581 $ 18,360,580 $ 18,497,118 $ 18,374,370
Total Loans 13,402,379 12,680,166 13,186,843 12,592,907
Total Earning Assets 17,282,901 16,990,358 17,135,301 17,042,540
Total Deposits 14,907,861 14,702,454 14,654,894 14,826,056
Total Stockholders' Equity 2,367,971 2,251,547 2,349,718 2,232,419
FINANCIAL RATIOS:
Return on Average Assets 1.22 % 1.07 % 1.22 % 0.99 %
Return on Average Stockholders' Equity 9.51 8.66 9.51 8.10
Return on Tangible Common Stockholders' Equity 14.21 13.39 14.27 12.64
Average Earning Assets to Average Assets 92.73 92.54 92.64 92.75
Allowance for Credit Losses - Loans as % of Total Loans 1.43 1.48 1.43 1.48
Net Charge-offs as % of Average Loans (Annualized) 0.15 0.21 0.13 0.51
Average Stockholders' Equity to Average Assets 12.71 12.26 12.70 12.15
Fully Taxable Equivalent (FTE) Yield on Average Earning Assets 5.58 5.82 5.49 5.72
Interest Expense/Average Earning Assets 2.34 2.59 2.26 2.56
Net Interest Margin FTE 3.24 3.23 3.23 3.16
Efficiency Ratio 55.09 53.76 54.54 55.54


ASSET QUALITY
(Dollars In Thousands) September 30, June 30, March 31, December 31, September 30,
2025 2025 2025 2024 2024
Nonaccrual Loans $ 65,740 $ 67,358 $ 81,922 $ 73,773 $ 59,088
Other Real Estate Owned and Repossessions 1,270 177 4,966 4,948 5,247
Nonperforming Assets (NPA) 67,010 67,535 86,888 78,721 64,335
90+ Days Delinquent 1,925 4,443 4,280 5,902 14,105
NPAs & 90+ Days Delinquent $ 68,935 $ 71,978 $ 91,168 $ 84,623 $ 78,440
Allowance for Credit Losses - Loans $ 194,468 $ 195,316 $ 192,031 $ 192,757 $ 187,828
Quarterly Net Charge-offs 5,148 2,315 4,926 771 6,709
NPAs / Actual Assets % 0.36 % 0.36 % 0.47 % 0.43 % 0.35 %
NPAs & 90 Day / Actual Assets % 0.37 % 0.39 % 0.49 % 0.46 % 0.43 %
NPAs / Actual Loans and OREO % 0.49 % 0.51 % 0.67 % 0.61 % 0.51 %
Allowance for Credit Losses - Loans / Actual Loans (%) 1.43 % 1.47 % 1.47 % 1.50 % 1.48 %
Quarterly Net Charge-offs as % of Average Loans (Annualized) 0.15 % 0.07 % 0.15 % 0.02 % 0.21 %


CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars In Thousands, Except Per Share Amounts) September 30, June 30, March 31, December 31, September 30,
2025 2025 2025 2024 2024
ASSETS
Cash and due from banks $ 88,079 $ 81,567 $ 86,113 $ 87,616 $ 84,719
Interest-bearing deposits 168,706 223,343 331,534 298,891 359,126
Investment securities available for sale 1,386,903 1,358,130 1,378,489 1,386,475 1,553,496
Investment securities held to maturity, net of allowance for credit losses 1,995,488 2,022,826 2,048,632 2,074,220 2,108,649
Loans held for sale 23,190 28,783 23,004 18,663 40,652
Loans 13,591,174 13,296,759 13,004,905 12,854,359 12,646,808
Less: Allowance for credit losses - loans (194,468 ) (195,316 ) (192,031 ) (192,757 ) (187,828 )
Net loans 13,396,706 13,101,443 12,812,874 12,661,602 12,458,980
Premises and equipment 121,771 122,808 128,749 129,743 129,582
Federal Home Loan Bank stock 47,264 47,290 45,006 41,690 41,716
Interest receivable 89,102 93,258 88,352 91,829 92,055
Goodwill 712,002 712,002 712,002 712,002 712,002
Other intangibles 15,298 16,797 18,302 19,828 21,599
Cash surrender value of life insurance 306,583 305,695 304,918 304,906 304,613
Other real estate owned 1,270 177 4,966 4,948 5,247
Tax asset, deferred and receivable 89,758 97,749 87,665 92,387 86,732
Other assets 369,509 380,909 369,181 387,169 348,384
TOTAL ASSETS $ 18,811,629 $ 18,592,777 $ 18,439,787 $ 18,311,969 $ 18,347,552
LIABILITIES
Deposits:
Noninterest-bearing $ 2,100,570 $ 2,197,416 $ 2,185,057 $ 2,325,579 $ 2,334,197
Interest-bearing 12,769,409 12,600,162 12,276,921 12,196,047 12,030,903
Total Deposits 14,869,979 14,797,578 14,461,978 14,521,626 14,365,100
Borrowings:
Federal funds purchased 199,370 85,000 185,000 99,226 30,000
Securities sold under repurchase agreements 122,226 114,758 122,947 142,876 124,894
Federal Home Loan Bank advances 798,626 898,702 972,478 822,554 832,629
Subordinated debentures and other borrowings 57,632 62,617 62,619 93,529 93,562
Total Borrowings 1,177,854 1,161,077 1,343,044 1,158,185 1,081,085
Deposits and other liabilities held for sale — — — — 288,476
Interest payable 18,240 16,174 13,304 16,102 18,089
Other liabilities 333,154 269,996 289,247 311,073 292,429
Total Liabilities 16,399,227 16,244,825 16,107,573 16,006,986 16,045,179
STOCKHOLDERS' EQUITY
Preferred Stock, $1,000 par value, $1,000 liquidation value:
Authorized -- 600 cumulative shares Issued and outstanding - 125 cumulative shares 125 125 125 125 125
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 25,000 25,000 25,000
Common Stock, $0.125 stated value:
Authorized -- 100,000,000 shares Issued and outstanding 7,149 7,159 7,226 7,247 7,265
Additional paid-in capital 1,158,026 1,163,170 1,183,263 1,188,768 1,192,683
Retained earnings 1,377,966 1,342,473 1,306,911 1,272,528 1,229,125
Accumulated other comprehensive loss (155,864 ) (189,975 ) (190,311 ) (188,685 ) (151,825 )
Total Stockholders' Equity 2,412,402 2,347,952 2,332,214 2,304,983 2,302,373
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 18,811,629 $ 18,592,777 $ 18,439,787 $ 18,311,969 $ 18,347,552


CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollars In Thousands, Except Per Share Amounts) September 30, June 30, March 31, December 31, September 30,
2025 2025 2025 2024 2024
INTEREST INCOME
Loans:
Taxable $ 200,406 $ 195,173 $ 187,728 $ 197,536 $ 206,680
Tax-exempt 11,173 10,805 10,532 9,020 8,622
Investment securities:
Taxable 8,288 8,266 8,372 9,024 9,263
Tax-exempt 12,460 12,516 12,517 12,754 13,509
Deposits with financial institutions 1,676 1,892 2,372 5,350 2,154
Federal Home Loan Bank stock 1,092 1,083 997 958 855
Total Interest Income 235,095 229,735 222,518 234,642 241,083
INTEREST EXPENSE
Deposits 90,821 84,241 80,547 89,835 98,856
Federal funds purchased 224 965 812 26 329
Securities sold under repurchase agreements 654 663 742 680 700
Federal Home Loan Bank advances 8,638 9,714 9,364 8,171 8,544
Subordinated debentures and other borrowings 1,093 1,138 783 1,560 1,544
Total Interest Expense 101,430 96,721 92,248 100,272 109,973
NET INTEREST INCOME 133,665 133,014 130,270 134,370 131,110
Provision for credit losses 4,300 5,600 4,200 4,200 5,000
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 129,365 127,414 126,070 130,170 126,110
NONINTEREST INCOME
Service charges on deposit accounts 8,921 8,566 8,072 8,124 8,361
Fiduciary and wealth management fees 8,842 8,831 8,644 8,665 8,525
Card payment fees 5,007 4,932 4,526 4,957 5,121
Net gains and fees on sales of loans 4,983 5,849 5,022 5,681 6,764
Derivative hedge fees 1,097 831 404 1,594 736
Other customer fees 414 401 415 316 344
Earnings on bank-owned life insurance 1,667 1,913 2,179 2,188 2,755
Net realized losses on sales of available for sale securities — (1 ) (7 ) (11,592 ) (9,114 )
Gain on branch sale — — — 19,983 —
Other income (loss) 1,546 (19 ) 793 2,826 1,374
Total Noninterest Income 32,477 31,303 30,048 42,742 24,866
NONINTEREST EXPENSES
Salaries and employee benefits 57,317 54,527 54,982 55,437 55,223
Net occupancy 7,057 6,845 7,216 7,335 6,994
Equipment 6,998 6,927 7,008 7,028 6,949
Marketing 2,120 1,997 1,353 2,582 1,836
Outside data processing fees 6,943 7,107 5,929 6,029 7,150
Printing and office supplies 311 272 347 377 378
Intangible asset amortization 1,499 1,505 1,526 1,771 1,772
FDIC assessments 3,526 3,552 3,648 3,744 3,720
Other real estate owned and foreclosure expenses 121 29 600 227 942
Professional and other outside services 3,718 3,741 3,261 3,777 3,035
Other expenses 6,951 7,096 7,032 7,982 6,630
Total Noninterest Expenses 96,561 93,598 92,902 96,289 94,629
INCOME BEFORE INCOME TAX 65,281 65,119 63,216 76,623 56,347
Income tax expense 8,516 8,287 7,877 12,274 7,160
NET INCOME 56,765 56,832 55,339 64,349 49,187
Preferred stock dividends 468 469 469 469 468
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 56,297 $ 56,363 $ 54,870 $ 63,880 $ 48,719
PER SHARE DATA:
Basic Net Income Available to Common Stockholders $ 0.98 $ 0.98 $ 0.95 $ 1.10 $ 0.84
Diluted Net Income Available to Common Stockholders $ 0.98 $ 0.98 $ 0.94 $ 1.10 $ 0.84
Cash Dividends Paid to Common Stockholders $ 0.36 $ 0.36 $ 0.35 $ 0.35 $ 0.35
Tangible Common Book Value Per Share $ 29.08 $ 27.90 $ 27.34 $ 26.78 $ 26.64
Average Diluted Common Shares Outstanding (in thousands) 57,448 57,773 58,242 58,247 58,289
FINANCIAL RATIOS:
Return on Average Assets 1.22 % 1.23 % 1.21 % 1.39 % 1.07 %
Return on Average Stockholders' Equity 9.51 9.63 9.38 11.05 8.66
Return on Tangible Common Stockholders' Equity 14.21 14.49 14.12 16.75 13.39
Average Earning Assets to Average Assets 92.73 92.71 92.47 92.48 92.54
Allowance for Credit Losses - Loans as % of Total Loans 1.43 1.47 1.47 1.50 1.48
Net Charge-offs as % of Average Loans (Annualized) 0.15 0.07 0.15 0.02 0.21
Average Stockholders' Equity to Average Assets 12.71 12.64 12.76 12.51 12.26
Fully Taxable Equivalent (FTE) Yield on Average Earning Assets 5.58 5.50 5.39 5.63 5.82
Interest Expense/Average Earning Assets 2.34 2.25 2.17 2.35 2.59
Net Interest Margin FTE 3.24 3.25 3.22 3.28 3.23
Efficiency Ratio 55.09 53.99 54.54 48.48 53.76


LOANS
(Dollars In Thousands) September 30, June 30, March 31, December 31, September 30,
2025 2025 2025 2024 2024
Commercial and industrial loans $ 4,604,895 $ 4,440,924 $ 4,306,597 $ 4,114,292 $ 4,041,217
Agricultural land, production and other loans to farmers 275,817 265,172 243,864 256,312 238,743
Real estate loans:
Construction 789,021 836,033 793,175 792,144 814,704
Commercial real estate, non-owner occupied 2,304,889 2,171,092 2,177,869 2,274,016 2,251,351
Commercial real estate, owner occupied 1,232,117 1,226,797 1,214,739 1,157,944 1,152,751
Residential 2,412,783 2,397,094 2,389,852 2,374,729 2,366,943
Home equity 687,021 673,961 650,499 659,811 641,188
Individuals' loans for household and other personal expenditures 138,703 141,045 140,954 166,028 158,480
Public finance and other commercial loans 1,145,928 1,144,641 1,087,356 1,059,083 981,431
Loans 13,591,174 13,296,759 13,004,905 12,854,359 12,646,808
Allowance for credit losses - loans (194,468 ) (195,316 ) (192,031 ) (192,757 ) (187,828 )
NET LOANS $ 13,396,706 $ 13,101,443 $ 12,812,874 $ 12,661,602 $ 12,458,980


DEPOSITS
(Dollars In Thousands) September 30, June 30, March 31, December 31, September 30,
2025
2025
2025
2024
2024
Demand deposits $ 7,645,698 $ 7,798,695 $ 7,786,554 $ 7,980,061 $ 7,678,510
Savings deposits 5,164,707 4,984,659 4,791,874 4,522,758 4,302,236
Certificates and other time deposits of $100,000 or less 627,828 617,857 625,203 692,068 802,949
Certificates and other time deposits of $100,000 or more 910,337 891,139 896,143 1,043,068 1,277,833
Brokered certificates of deposits 1 521,409 505,228 362,204 283,671 303,572
TOTAL DEPOSITS $ 14,869,979 $ 14,797,578 $ 14,461,978 $ 14,521,626 $ 14,365,100

1 - Total brokered deposits of $1.3 billion, which includes brokered CD's of $521.4 million at September 30, 2025.

CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars In Thousands)
Three Months Ended
September 30, 2025 September 30, 2024
Average
Balance 		Interest
Income /
Expense 		Average
Rate 		Average
Balance 		Interest
Income /
Expense 		Average
Rate
ASSETS
Interest-bearing deposits $ 229,271 $ 1,676 2.92 % $ 252,113 $ 2,154 3.42 %
Federal Home Loan Bank stock 47,278 1,092 9.24 41,730 855 8.20
Investment Securities: (1)
Taxable 1,567,594 8,288 2.11 1,789,526 9,263 2.07
Tax-exempt (2) 2,036,379 15,772 3.10 2,226,823 17,100 3.07
Total Investment Securities 3,603,973 24,060 2.67 4,016,349 26,363 2.63
Loans held for sale 26,165 401 6.13 31,991 483 6.04
Loans: (3)
Commercial 9,165,241 158,469 6.92 8,699,733 164,922 7.58
Real estate mortgage 2,217,524 25,676 4.63 2,183,095 24,333 4.46
HELOC and installment 851,239 15,860 7.45 832,222 16,942 8.14
Tax-exempt (2) 1,142,210 14,070 4.93 933,125 10,914 4.68
Total Loans 13,402,379 214,476 6.40 12,680,166 217,594 6.86
Total Earning Assets 17,282,901 241,304 5.58 % 16,990,358 246,966 5.82 %
Total Non-Earning Assets 1,354,680 1,370,222
TOTAL ASSETS $ 18,637,581 $ 18,360,580
LIABILITIES
Interest-Bearing Deposits:
Interest-bearing deposits $ 5,600,373 $ 37,463 2.68 % $ 5,455,298 $ 40,450 2.97 %
Money market deposits 3,843,537 31,709 3.30 2,974,188 25,950 3.49
Savings deposits 1,269,539 2,605 0.82 1,425,047 4,208 1.18
Certificates and other time deposits 2,036,704 19,044 3.74 2,499,655 28,248 4.52
Total Interest-Bearing Deposits 12,750,153 90,821 2.85 12,354,188 98,856 3.20
Borrowings 1,072,145 10,609 3.96 1,071,440 11,117 4.15
Total Interest-Bearing Liabilities 13,822,298 101,430 2.94 13,425,628 109,973 3.28
Noninterest-bearing deposits 2,157,708 2,348,266
Other liabilities 289,604 335,139
Total Liabilities 16,269,610 16,109,033
STOCKHOLDERS' EQUITY 2,367,971 2,251,547
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 18,637,581 $ 18,360,580
Net Interest Income (FTE) $ 139,874 $ 136,993
Net Interest Spread (FTE) (4) 2.64 % 2.54 %
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets 5.58 % 5.82 %
Interest Expense / Average Earning Assets 2.34 % 2.59 %
Net Interest Margin (FTE) (5) 3.24 % 3.23 %
(1) Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
(2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2025 and 2024. These totals equal $6,209 and $5,883 for the three months ended September 30, 2025 and 2024, respectively.
(3) Non accruing loans have been included in the average balances.
(4) Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
(5) Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.


CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars In Thousands)
Nine Months Ended
September 30, 2025 September 30, 2024
Average
Balance 		Interest
Income /
Expense 		Average
Rate 		Average
Balance 		Interest
Income /
Expense 		Average
Rate
ASSETS
Interest-bearing deposits $ 258,396 $ 5,940 3.07 % $ 383,007 $ 11,642 4.05 %
Federal Home Loan Bank stock 45,964 3,172 9.20 41,748 2,569 8.20
Investment Securities: (1)
Taxable 1,602,343 24,926 2.07 1,787,119 27,062 2.02
Tax-exempt (2) 2,041,755 47,459 3.10 2,237,759 51,561 3.07
Total Investment Securities 3,644,098 72,385 2.65 4,024,878 78,623 2.60
Loans held for sale 24,175 1,109 6.12 27,735 1,242 5.97
Loans: (3)
Commercial 8,982,171 460,349 6.83 8,659,088 484,979 7.47
Real estate mortgage 2,203,263 75,184 4.55 2,159,738 70,489 4.35
HELOC and installment 838,420 46,665 7.42 825,060 49,406 7.98
Tax-exempt (2) 1,138,814 41,079 4.81 921,286 31,952 4.62
Total Loans 13,186,843 624,386 6.31 12,592,907 638,068 6.76
Total Earning Assets 17,135,301 705,883 5.49 % 17,042,540 730,902 5.72 %
Total Non-Earning Assets 1,361,817 1,331,830
TOTAL ASSETS $ 18,497,118 $ 18,374,370
LIABILITIES
Interest-Bearing deposits:
Interest-bearing deposits $ 5,556,274 $ 107,372 2.58 % $ 5,487,106 $ 120,935 2.94 %
Money market deposits 3,633,314 86,375 3.17 3,018,526 80,563 3.56
Savings deposits 1,283,856 7,563 0.79 1,497,620 11,485 1.02
Certificates and other time deposits 1,996,406 54,299 3.63 2,447,684 83,309 4.54
Total Interest-Bearing Deposits 12,469,850 255,609 2.73 12,450,936 296,292 3.17
Borrowings 1,194,498 34,790 3.88 990,022 30,328 4.08
Total Interest-Bearing Liabilities 13,664,348 290,399 2.83 13,440,958 326,620 3.24
Noninterest-bearing deposits 2,185,044 2,375,120
Other liabilities 298,008 325,873
Total Liabilities 16,147,400 16,141,951
STOCKHOLDERS' EQUITY 2,349,718 2,232,419
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 18,497,118 $ 18,374,370
Net Interest Income (FTE) $ 415,484 $ 404,282
Net Interest Spread (FTE) (4) 2.66 % 2.48 %
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets 5.49 % 5.72 %
Interest Expense / Average Earning Assets 2.26 % 2.56 %
Net Interest Margin (FTE) (5) 3.23 % 3.16 %
(1) Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
(2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2025 and 2024. These totals equal $18,535 and $17,538 for the nine months ended September 30, 2025 and 2024, respectively.
(3) Non accruing loans have been included in the average balances.
(4) Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
(5) Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.


ADJUSTED NET INCOME AND DILUTED EARNINGS PER COMMON SHARE - NON-GAAP
(Dollars In Thousands, Except Per Share Amounts) Three Months Ended Nine Months Ended
September 30, June 30, March 31, December 31, September 30, September 30, September 30,
2025 2025 2025 2024 2024 2025 2024
Net Income Available to Common Stockholders - GAAP $ 56,297 $ 56,363 $ 54,870 $ 63,880 $ 48,719 $ 167,530 $ 135,647
Adjustments:
Net realized losses on sales of available for sale securities — 1 7 11,592 9,114 8 9,165
Gain on branch sale — — — (19,983 ) — — —
Acquisition-related expenses 276 — — — — 276 —
Non-core expenses 1,2,3 633 — — 762 — 633 3,481
Tax on adjustments (220 ) — (2 ) 1,851 (2,220 ) (222 ) (3,081 )
Adjusted Net Income Available to Common Stockholders - Non-GAAP $ 56,986 $ 56,364 $ 54,875 $ 58,102 $ 55,613 $ 168,225 $ 145,212
Average Diluted Common Shares Outstanding (in thousands) 57,448 57,773 58,242 58,247 58,289 57,817 58,629
Diluted Earnings Per Common Share - GAAP $ 0.98 $ 0.98 $ 0.94 $ 1.10 $ 0.84 $ 2.90 $ 2.31
Adjustments:
Net realized losses on sales of available for sale securities — — — 0.20 0.15 — 0.16
Gain on branch sale — — — (0.34 ) — — —
Acquisition-related expenses — — — — — — —
Non-core expenses 1,2,3 0.01 — — 0.01 — 0.01 0.06
Tax on adjustments — — — 0.03 (0.04 ) — (0.05 )
Adjusted Diluted Earnings Per Common Share - Non-GAAP $ 0.99 $ 0.98 $ 0.94 $ 1.00 $ 0.95 $ 2.91 $ 2.48

1 - Non-core expenses in the Three and Nine Months Ended September 30, 2025 included $0.6 million of severance costs.
2 - Non-core expenses in the Three Months Ended December 31, 2024 included $0.8 million of costs directly related to the branch sale.
3 - Non-core expenses in the Nine Months Ended September 30, 2024 included $2.4 million from duplicative online banking conversion costs and $1.1 million from the FDIC special assessment.

NET INTEREST MARGIN ("NIM"), ADJUSTED
(Dollars in Thousands)
Three Months Ended Nine Months Ended
September 30, June 30, March 31, December 31, September 30, September 30, September 30,
2025 2025 2025 2024 2024 2025 2024
Net Interest Income (GAAP) $ 133,665 $ 133,014 $ 130,270 $ 134,370 $ 131,110 $ 396,949 $ 386,744
Fully Taxable Equivalent ("FTE") Adjustment 6,209 6,199 6,127 5,788 5,883 18,535 17,538
Net Interest Income (FTE) (non-GAAP) $ 139,874 $ 139,213 $ 136,397 $ 140,158 $ 136,993 $ 415,484 $ 404,282
Average Earning Assets (GAAP) $ 17,282,901 $ 17,158,984 $ 16,960,475 $ 17,089,198 $ 16,990,358 $ 17,135,301 $ 17,042,540
Net Interest Margin (GAAP) 3.09 % 3.10 % 3.07 % 3.15 % 3.09 % 3.09 % 3.03 %
FTE Adjustment 0.15 % 0.15 % 0.15 % 0.13 % 0.14 % 0.14 % 0.13 %
Net Interest Margin (FTE) (non-GAAP) 3.24 % 3.25 % 3.22 % 3.28 % 3.23 % 3.23 % 3.16 %


RETURN ON TANGIBLE COMMON EQUITY - NON-GAAP
(Dollars In Thousands) Three Months Ended Nine Months Ended
September 30, June 30, March 31, December 31, September 30, September 30, September 30,
2025 2025 2025 2024 2024 2025 2024
Total Average Stockholders' Equity (GAAP) $ 2,367,971 $ 2,340,010 $ 2,340,874 $ 2,312,270 $ 2,251,547 $ 2,349,718 $ 2,232,419
Less: Average Preferred Stock (25,125 ) (25,125 ) (25,125 ) (25,125 ) (25,125 ) (25,125 ) (25,125 )
Less: Average Intangible Assets, Net of Tax (724,619 ) (725,813 ) (726,917 ) (728,218 ) (729,581 ) (725,775 ) (730,993 )
Average Tangible Common Equity, Net of Tax (Non-GAAP) $ 1,618,227 $ 1,589,072 $ 1,588,832 $ 1,558,927 $ 1,496,841 $ 1,598,818 $ 1,476,301
Net Income Available to Common Stockholders (GAAP) $ 56,297 $ 56,363 $ 54,870 $ 63,880 $ 48,719 $ 167,530 $ 135,647
Plus: Intangible Asset Amortization, Net of Tax 1,185 1,188 1,206 1,399 1,399 3,579 4,345
Tangible Net Income (Non-GAAP) $ 57,482 $ 57,551 $ 56,076 $ 65,279 $ 50,118 $ 171,109 $ 139,992
Return on Tangible Common Equity (Non-GAAP) 14.21 % 14.49 % 14.12 % 16.75 % 13.39 % 14.27 % 12.64 %


EFFICIENCY RATIO - NON-GAAP
(Dollars In Thousands) Three Months Ended Nine Months Ended
September 30, June 30, March 31, December 31, September 30, September 30, September 30,
2025 2025 2025 2024 2024 2025 2024
Noninterest Expense (GAAP) $ 96,561 $ 93,598 $ 92,902 $ 96,289 $ 94,629 $ 283,061 $ 282,977
Less: Intangible Asset Amortization (1,499 ) (1,505 ) (1,526 ) (1,771 ) (1,772 ) (4,530 ) (5,500 )
Less: OREO and Foreclosure Expenses (121 ) (29 ) (600 ) (227 ) (942 ) (750 ) (1,849 )
Adjusted Noninterest Expense (Non-GAAP) $ 94,941 $ 92,064 $ 90,776 $ 94,291 $ 91,915 $ 277,781 $ 275,628
Net Interest Income (GAAP) $ 133,665 $ 133,014 $ 130,270 $ 134,370 $ 131,110 $ 396,949 $ 386,744
Plus: Fully Taxable Equivalent Adjustment 6,209 6,199 6,127 5,788 5,883 18,535 17,538
Net Interest Income on a Fully Taxable Equivalent Basis (Non-GAAP) $ 139,874 $ 139,213 $ 136,397 $ 140,158 $ 136,993 $ 415,484 $ 404,282
Noninterest Income (GAAP) $ 32,477 $ 31,303 $ 30,048 $ 42,742 $ 24,866 $ 93,828 $ 82,838
Less: Investment Securities (Gains) Losses — 1 7 11,592 9,114 8 9,165
Adjusted Noninterest Income (Non-GAAP) $ 32,477 $ 31,304 $ 30,055 $ 54,334 $ 33,980 $ 93,836 $ 92,003
Adjusted Revenue (Non-GAAP) $ 172,351 $ 170,517 $ 166,452 $ 194,492 $ 170,973 $ 509,320 $ 496,285
Efficiency Ratio (Non-GAAP) 55.09 % 53.99 % 54.54 % 48.48 % 53.76 % 54.54 % 55.54 %
Adjusted Noninterest Expense (Non-GAAP) $ 94,941 $ 92,064 $ 90,776 $ 94,291 $ 91,915 $ 277,781 $ 275,628
Less: Acquisition-related Expenses (276 ) — — — — (276 ) —
Less: Non-core Expenses 1,2,3 (633 ) — — (762 ) — (633 ) (3,481 )
Adjusted Noninterest Expense Excluding Non-core Expenses (Non-GAAP) $ 94,032 $ 92,064 $ 90,776 $ 93,529 $ 91,915 $ 276,872 $ 272,147
Adjusted Revenue (Non-GAAP) $ 172,351 $ 170,517 $ 166,452 $ 194,492 $ 170,973 $ 509,320 $ 496,285
Less: Gain on Branch Sale — — — (19,983 ) — — —
Adjusted Revenue Excluding Gain on Branch Sale (Non-GAAP) $ 172,351 $ 170,517 $ 166,452 $ 174,509 $ 170,973 $ 509,320 $ 496,285
Adjusted Efficiency Ratio (Non-GAAP) 54.56 % 53.99 % 54.54 % 53.60 % 53.76 % 54.36 % 54.84 %

1 - Non-core expenses in the Three and Nine Months Ended September 30, 2025 included $0.6 million of severance costs.
2 - Non-core expenses in the Three Months Ended December 31, 2024 included $0.8 million of costs directly related to the branch sale.
3 - Non-core expenses in the Nine Months Ended September 30, 2024 included $2.4 million from duplicative online banking conversion costs and $1.1 million from the FDIC special assessment.

For more information, contact:
Nicole M. Weaver, First Vice President and Director of Corporate Administration
765-521-7619
http://www.firstmerchants.com