First Merchants Corporation (FRME) Earnings
First Merchants Corporation is expected to report next earnings on July 23, 2026 (in NaN days), with a consensus EPS estimate of $1.03. FRME has beaten EPS estimates in 8 of its last 12 reported quarters (average surprise +4.1% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 23, 2026 | $0.96 | $1.03 | +7.3% | $193M | +2.6% |
| Jan 26, 2026 | $0.96 | $0.98 | +2.1% | $171M | -8.3% |
| Oct 22, 2025 | $0.96 | $0.99 | +2.9% | $166M | -3.7% |
| Jul 23, 2025 | $0.94 | $0.98 | +4.3% | $164M | -4.9% |
| Apr 24, 2025 | $0.91 | $0.94 | +3.3% | $160M | -6.2% |
| Jan 30, 2025 | $0.90 | $1.00 | +11.1% | $157M | -5.9% |
| Oct 24, 2024 | $0.90 | $0.84 | -6.7% | $156M | -6.2% |
| Jul 25, 2024 | $0.80 | $0.68 | -15.0% | $160M | -0.4% |
| Apr 25, 2024 | $0.82 | $0.85 | +3.7% | $154M | -5.5% |
| Jan 25, 2024 | $0.87 | $0.87 | +0.0% | $157M | -5.4% |
| Oct 26, 2023 | $0.94 | $0.95 | +1.1% | $161M | -3.5% |
| Jul 25, 2023 | $1.02 | $1.02 | +0.0% | $164M | -5.1% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · April 23, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
• Business strategy is building Midwestern strength by growing organically with four primary business units. • First quarter was busy with closing of First Savings Bank and preparation for May integration date. Organic loan growth flat, but expected mid-single-digit loan growth through 2026. • Core relationship-focused deposit franchise showed growth with commercial, consumer, and southern Indiana market. • Disciplined deposit and loan pricing led to net interest margin improvement. • Added new teammates in various teams. • Integration efforts of First Savings Bank on track, engagement of their team strong, on-site training and preparation for May integration advancing. • Specialty verticals showed consistent production in new business during the quarter, SBA business model a direct enhancement to First Merchants franchise.
Guidance
• Confident in mid-single-digit loan growth for 2026. • Expect margin to pick up a few basis points over the year due to day count and repricing from rate cuts. • Non-interest bearing deposits expected to maintain 20 - 23% level. • Expense base for legacy First Merchants expected to have 3% - 5% year-over-year increase, with cost synergies from First Savings acquisition on track. • Anticipate lift in non-interest income in coming quarters from full quarter of First Savings and gains on sales of loans from verticals. • Intend to continue being active in share buyback space given valuation.
Segment performance
First quarter reported net income was $27.7 million, or 45 cents per diluted share. Adjusted ROA was 1.25% and adjusted return on tangible common equity exceeded 14%. First quarter reported net income included $17 million one-time acquisition-related expenses and a $29.8 million mark to market charge. Excluding these items, adjusted earnings per share totaled $1.03 up from $0.94 a year ago. Total assets stand at $21.1 billion, with $15.3 billion in loans and $16.5 billion in deposits. Core relationship-focused deposit franchise showed growth, with non-interest bearing deposits increasing to 23% this quarter. Loan portfolio yield declined by 23 basis points to 6.09%. Net interest income on a fully tax equivalent basis was $157.7 million, increased $12.4 million linked quarter and $21.3 million from same period prior year. Non-interest income totaled $5.8 million reported and $35.6 million normalized. Non-interest expense totaled $125.1 million including $17 million acquisition related costs. Tangible common equity ratio declined to 9%.
Analyst Q&A
Q: On loan growth side, seasonally down in first quarter with loan sale, what's driving loan growth prospects going forward?
A: Confident in single-digit growth rate, commercial pipelines strong, some paydowns were stacked normal course but pipelines are strong.
Q: On margin, where see margin moving forward, impact from loan sale?
A: Loans sold have weighted average coupon of 3.46%, will pay down higher cost deposits, over time invest in loans for margin pickup, margin expected to pick up a few basis points through year.
Q: On deposit migration into non-interest-bearing, sustainability and cost of deposits?
A: Checking account redesign migration stable, no runoff anticipated, non-interest bearing expected to maintain 20 - 23% level, deposit rates expected to be more steady.
Q: On capital perspective, impact from Basel III proposal and capital return?
A: Estimate Basel III proposal to benefit CET1 by 50 - 80 basis points, will continue to be active in share buyback.
Q: On balance sheet optimization, any additional need?
A: Not anticipating additional loan or bond sales, pleased with earn back and modeling.
Q: On First Savings specialty businesses, latest thinking?
A: Triple net lease production stable, first lien HELOC business fee generation, SBA business model a nice add.
Q: On margin fair value accretion marks and combined expense base in second quarter?
A: First two months of acquisition recorded 1.5 million fair value accretion, expense base for legacy First Merchants expected 3% - 5% year-over-year increase.
Q: On market disruption and adding commercial lending teams?
A: Very opportunistically active in overlap markets to add quality talent.
Q: On income expectations for second quarter and full year, drivers for charge-offs?
A: Expect non-interest income lift in coming quarters, charge-offs in first quarter were legacy First Merchants idiosyncratic.
Q: On tax rate and SBA business impact?
A: Expected 13% effective tax rate, no impact on SBA business outlook yet