First Merchants targets mid-to-high single-digit loan growth in 2025 amid enhanced technology investments
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 30 2025
0mins
Should l Buy FRMEP?
Source: SeekingAlpha
Q4 Performance Highlights: First Merchants Corporation reported a strong Q4 2024 with a 6% loan growth and improved net interest margin, driven by strategic initiatives and enhanced technology platforms. Adjusted earnings per share were $1.00, reflecting a gain from branch sales and stable asset quality.
Outlook for 2025: Management anticipates mid-to-high single-digit loan growth in 2025, supported by robust pipelines in commercial and investment real estate, while maintaining confidence in deposit cost management despite ongoing interest rate pressures and competitive challenges.
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Analyst Views on FRMEP
Wall Street analysts forecast FRMEP stock price to rise
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Current: 25.530
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Current: 25.530
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
First Merchants Corporation Q4 2025 Earnings Call Highlights
- Asset and Income Innovation: First Merchants Corporation reported a net income of $56.6 million and earnings per share of $0.99 in Q4 2025, with an annual return on assets of 1.21%, demonstrating sustained growth in asset management and profitability, further solidifying its market position.
- Loan and Deposit Growth: The company reported a loan growth of $197 million for the quarter, achieving a 7.3% annual growth rate, while deposits increased by $424.9 million, with an annualized growth rate of 11.4%, indicating strong performance in the credit market and enhanced customer trust.
- M&A Integration Confidence: CEO Mark Hardwick confirmed the imminent closing of the First Savings Group acquisition, expected to add approximately $2.4 billion in assets and enhance the company's market share in Southern Indiana and the Louisville area, reflecting confidence in future growth.
- Expense and Revenue Outlook: CFO Kawiecki projected a 3% to 5% increase in noninterest expenses for 2026 while planning for a 10% growth in noninterest income, indicating a strategic focus on cost control while actively seeking revenue diversification.
See More
First Merchants Corporation (FRME) Declares $0.4688 Quarterly Dividend with 7.26% Yield
- Dividend Declaration: First Merchants Corporation has declared a quarterly dividend of $0.4688 per share, consistent with previous distributions, reflecting the company's stable cash flow and profitability, which enhances investor confidence.
- Yield Performance: The forward yield of 7.26% not only attracts investors seeking stable returns but may also enhance the stock's market appeal, promoting price stability amid market fluctuations.
- Payment Schedule: The dividend is payable on February 16, with a record date of January 30 and an ex-dividend date also on January 30, ensuring shareholders receive timely returns and strengthening the relationship between the company and its investors.
- Acquisition Plans: First Merchants is targeting a mid-first quarter close for its acquisition of First Savings, aiming to drive future growth through expanded loan offerings, demonstrating the company's proactive strategy in mergers and acquisitions.
See More
First Merchants Corporation Declares $46.88 Quarterly Dividend on Preferred Stock
- Quarterly Cash Dividend: First Merchants Corporation has declared a quarterly cash dividend of $46.88 per share on its 7.50% Non-Cumulative Perpetual Preferred Stock Series A, reflecting the company's stable cash flow and commitment to shareholder returns.
- Record Date for Shareholders: The dividend will be payable on February 16, 2026, to stockholders of record on January 30, 2026, ensuring timely distribution of earnings to shareholders and enhancing investor confidence.
- Preferred Stock Trading Information: Each depositary share represents a 1/100th interest in a share of preferred stock, traded on NASDAQ under the symbol FRMEP, which increases liquidity and attracts more investor interest.
- Company Background: First Merchants Corporation is a financial holding company headquartered in Muncie, Indiana, operating First Merchants Bank, showcasing its comprehensive strength in the financial services sector.
See More
First Merchants Corporation Declares $46.88 Quarterly Dividend on Preferred Stock
- Quarterly Cash Dividend: First Merchants Corporation has declared a quarterly cash dividend of $46.88 per share, reflecting the company's commitment to shareholder returns, which is expected to enhance investor confidence and attract more investments.
- Preferred Stock Details: The dividend applies to its 7.50% Non-Cumulative Perpetual Preferred Stock Series A, with each depositary share yielding $0.4688, further enhancing the attractiveness of the preferred stock and potentially increasing market trading activity.
- Payment Schedule: The dividend will be payable on February 16, 2026, to stockholders of record on January 30, 2026, ensuring timely returns for shareholders and strengthening trust between the company and its investors.
- Company Background: First Merchants Corporation is a financial holding company headquartered in Muncie, Indiana, operating First Merchants Bank, and its ongoing dividend policy demonstrates its robust financial health and confidence in future growth.
See More
First Merchants Corporation Declares Cash Dividend for Preferred Stockholders
Dividend Declaration: First Merchants Corporation has announced a quarterly cash dividend of $46.88 per share on its 7.50% Non-Cumulative Perpetual Preferred Stock Series A, with a payment date set for November 14, 2025.
Company Overview: First Merchants Corporation is a financial holding company based in Muncie, Indiana, operating First Merchants Bank and offering services through First Merchants Private Wealth Advisors.
See More
First Merchants' Preferred Stock Series A Shares Cross 7.5% Yield Mark
Stock Performance: First Merchants Corp's 7.50% Dep Shares Non-Cumulative Preferred Stock Series A (FRMEP) is down about 0.3%, while the common shares (FRME) are down approximately 1.3% in Friday trading.
Dividend History: The article includes a chart detailing the historical dividend payments for FRMEP, indicating its performance over the past year compared to FRME.
See More
First Merchants Corporation Q4 2025 Earnings Call Highlights
- Asset and Income Innovation: First Merchants Corporation reported a net income of $56.6 million and earnings per share of $0.99 in Q4 2025, with an annual return on assets of 1.21%, demonstrating sustained growth in asset management and profitability, further solidifying its market position.
- Loan and Deposit Growth: The company reported a loan growth of $197 million for the quarter, achieving a 7.3% annual growth rate, while deposits increased by $424.9 million, with an annualized growth rate of 11.4%, indicating strong performance in the credit market and enhanced customer trust.
- M&A Integration Confidence: CEO Mark Hardwick confirmed the imminent closing of the First Savings Group acquisition, expected to add approximately $2.4 billion in assets and enhance the company's market share in Southern Indiana and the Louisville area, reflecting confidence in future growth.
- Expense and Revenue Outlook: CFO Kawiecki projected a 3% to 5% increase in noninterest expenses for 2026 while planning for a 10% growth in noninterest income, indicating a strategic focus on cost control while actively seeking revenue diversification.
See More
First Merchants Corporation (FRME) Declares $0.4688 Quarterly Dividend with 7.26% Yield
- Dividend Declaration: First Merchants Corporation has declared a quarterly dividend of $0.4688 per share, consistent with previous distributions, reflecting the company's stable cash flow and profitability, which enhances investor confidence.
- Yield Performance: The forward yield of 7.26% not only attracts investors seeking stable returns but may also enhance the stock's market appeal, promoting price stability amid market fluctuations.
- Payment Schedule: The dividend is payable on February 16, with a record date of January 30 and an ex-dividend date also on January 30, ensuring shareholders receive timely returns and strengthening the relationship between the company and its investors.
- Acquisition Plans: First Merchants is targeting a mid-first quarter close for its acquisition of First Savings, aiming to drive future growth through expanded loan offerings, demonstrating the company's proactive strategy in mergers and acquisitions.
See More
First Merchants Corporation Declares $46.88 Quarterly Dividend on Preferred Stock
- Quarterly Cash Dividend: First Merchants Corporation has declared a quarterly cash dividend of $46.88 per share on its 7.50% Non-Cumulative Perpetual Preferred Stock Series A, reflecting the company's stable cash flow and commitment to shareholder returns.
- Record Date for Shareholders: The dividend will be payable on February 16, 2026, to stockholders of record on January 30, 2026, ensuring timely distribution of earnings to shareholders and enhancing investor confidence.
- Preferred Stock Trading Information: Each depositary share represents a 1/100th interest in a share of preferred stock, traded on NASDAQ under the symbol FRMEP, which increases liquidity and attracts more investor interest.
- Company Background: First Merchants Corporation is a financial holding company headquartered in Muncie, Indiana, operating First Merchants Bank, showcasing its comprehensive strength in the financial services sector.
See More
First Merchants Corporation Declares $46.88 Quarterly Dividend on Preferred Stock
- Quarterly Cash Dividend: First Merchants Corporation has declared a quarterly cash dividend of $46.88 per share, reflecting the company's commitment to shareholder returns, which is expected to enhance investor confidence and attract more investments.
- Preferred Stock Details: The dividend applies to its 7.50% Non-Cumulative Perpetual Preferred Stock Series A, with each depositary share yielding $0.4688, further enhancing the attractiveness of the preferred stock and potentially increasing market trading activity.
- Payment Schedule: The dividend will be payable on February 16, 2026, to stockholders of record on January 30, 2026, ensuring timely returns for shareholders and strengthening trust between the company and its investors.
- Company Background: First Merchants Corporation is a financial holding company headquartered in Muncie, Indiana, operating First Merchants Bank, and its ongoing dividend policy demonstrates its robust financial health and confidence in future growth.
See More
First Merchants Corporation Declares Cash Dividend for Preferred Stockholders
Dividend Declaration: First Merchants Corporation has announced a quarterly cash dividend of $46.88 per share on its 7.50% Non-Cumulative Perpetual Preferred Stock Series A, with a payment date set for November 14, 2025.
Company Overview: First Merchants Corporation is a financial holding company based in Muncie, Indiana, operating First Merchants Bank and offering services through First Merchants Private Wealth Advisors.
See More
First Merchants' Preferred Stock Series A Shares Cross 7.5% Yield Mark
Stock Performance: First Merchants Corp's 7.50% Dep Shares Non-Cumulative Preferred Stock Series A (FRMEP) is down about 0.3%, while the common shares (FRME) are down approximately 1.3% in Friday trading.
Dividend History: The article includes a chart detailing the historical dividend payments for FRMEP, indicating its performance over the past year compared to FRME.
See More
