First Merchants Corporation (FRMEP) Earnings
First Merchants Corporation is expected to report next earnings on July 22, 2026 (in NaN days), with a consensus EPS estimate of $1.02. FRMEP has beaten EPS estimates in 5 of its last 12 reported quarters (average surprise -9.5% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 22, 2026 | $0.89 | $0.45 | -49.3% | $193M | +2.6% |
| Jan 26, 2026 | $0.95 | $0.99 | +4.3% | $144M | -17.1% |
| Oct 22, 2025 | $0.96 | $0.99 | +2.7% | $268M | +55.1% |
| Jul 23, 2025 | $0.94 | $0.98 | +4.1% | $261M | +51.0% |
| Apr 23, 2025 | $0.91 | $0.95 | +4.1% | $253M | +44.8% |
| Jan 30, 2025 | $0.90 | $1.10 | +22.5% | $257M | +54.1% |
| Oct 24, 2024 | $0.90 | $0.84 | -6.4% | $266M | +59.9% |
| Jul 25, 2024 | $0.78 | $0.68 | -12.5% | $267M | +66.5% |
| Apr 25, 2024 | $0.82 | $0.81 | -1.8% | $262M | +61.0% |
| Jan 25, 2024 | $0.86 | $0.71 | -16.7% | $157M | -5.4% |
| Nov 1, 2023 | $0.94 | $0.95 | +0.2% | $161M | -3.5% |
| Aug 2, 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
Q4 FY2025 · January 27, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Record financials: Ended the year with record total assets, loans, and deposits; record net income and diluted earnings per share. - Loan growth: Robust with $939 million of growth for the year (7.3%), driven by various factors like CapEx financing, revolvers, M&A financing, etc. - Deposit growth: Strong fourth quarter consumer deposit growth, with $155 million total consumer deposit increases and $424.9 million annualized growth. - Acquisition: Closing of First Savings Group acquisition on February 1, 2026, adding approximately $2.4 billion of assets. - Asset quality: Strong, with NPAs and 90-day past due loans up but adjusting for a payoff, down year-over-year; reserve at quarter end was $195.6 million with a robust coverage ratio.
Guidance
- Loan growth: Mid-single digit expected for first quarter, mid- to high expectations for the year, consistent with 2025 results. - Noninterest income: Expecting double-digit growth in 2026. - Buybacks: Intend to be aggressive with buybacks as long as the price holds. - Expenses: Core noninterest expense expected to increase 3%-5% year-over-year; combined with First Savings, expect positive operating leverage.
Segment performance
First Merchants Corporation ended the year with record total assets of $19 billion, record total loans of $13.8 billion, and record total deposits of $15.3 billion. Full-year net income was $224.1 million, a 13.8% increase from the previous year, with diluted earnings per share of $3.88. Fourth quarter net income was $56.6 million or $0.99 per share. Loan growth was robust with $939 million of growth for the year (7.3%). Deposit growth was strong in the fourth quarter with $155 million of total consumer deposit increases and $424.9 million annualized growth. Net interest income in the fourth quarter increased by $5.4 million, and full-year net interest income was $145.3 million, up $5.1 million from the prior year. Noninterest income in the fourth quarter totaled $33.1 million, with customer-related fees at $30 million. Noninterest expense for the quarter was $99.5 million, and full-year noninterest expense increased by $3.2 million (less than 1%).
Risks & headwinds
- Balance sheet optimization: Evaluating selling First Savings bond portfolio, small portion of bond and low-yielding loans, but size is modest. - M&A disruption: Conversations happening with clients and teams, but opportunities viewed as present. - Deposit repricing: CD maturities and interest rate changes could impact margin.
Analyst Q&A
Q: Balance sheet optimization, areas being looked at?
A: Evaluating selling First Savings bond portfolio, small portion of bond and low-yielding loans.
Q: Loan growth expectations, 2026?
A: Mid-single digit first quarter, mid- to high for the year, balanced across segments.
Q: Deposits, CD repricing schedule?
A: $800 million CDs maturing in first 2 quarters of 2026 with higher rates, then $400 million maturing in third quarter.
Q: Operating leverage, 2026?
A: Adding talent, expecting positive operating leverage from First Savings integration.
Q: Expenses, core expense base and FSFG impact?
A: Core noninterest expense up 3%-5% year-over-year; first partial quarter with FSFG coming on board.
Q: Fee income growth 2026?
A: Expecting double-digit growth, inclusive of stand-alone and acquisition.
Q: M&A disruption on loan pipeline?
A: Conversations happening, viewed as opportunity, evaluating talent augmentation.
Q: Buybacks, M&A fit?
A: Focused on current acquisition, buybacks preferred over M&A near term.
Q: Margin, core margin ex onetime item and Q1 seasonality?
A: Core margin had 8 basis points from interest recovery; Q1 seasonality dips margin, but overall annualized margin expected to compress a couple of basis points.
Q: FSFG impact on margin?
A: Interest accretion from FSFG deal gives margin lift.
Q: Expenses, efficiency ratio outlook?
A: Efficiency ratio under 55% level, operating leverage expected in Q3, Q4.
Q: Loan repricing in 2026?
A: $350 million fixed rate loans maturing at 4.40%, repricing upside.
Q: Tax rate, 2026?
A: Core 13%, combined with deal likely 12%.
Q: Multifamily construction NPLs and charge-offs?
A: Multifamily portfolio generally decent, charge-offs around $6-7 million run rate.
Q: Commercial deposits ex public funds and loan demand?
A: Correlation with line of credit usage, seasonality from public funds, but related to loan growth.
Q: M&A and buyback focus?
A: Focused on current acquisition, buybacks preferred over M&A near term