First Merchants Q4 Revenue $178.36M, Beats Expectations
Reports Q4 revenue $178.36M, consensus $172.93M. Reports Q4 tangible book value per share $30.18. Reports Q4 CET1 capital ratio 11.7%. Reports Q4 net charge-offs .18%. "First Merchants delivered record double-digit earnings and high single-digit loan growth in 2025. Our capital, liquidity and credit positions remain very strong and position us for continued success," said Mark Hardwick, CEO. "The pending completion of the First Savings Bank acquisition on February 1st will further enhance our state-wide Indiana presence. We value the continued trust of our clients, teammates and shareholders."
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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.
First Merchants Reports Decline in Q4 Earnings
- Earnings Decline: First Merchants Corporation reported a net income of $56.60 million for Q4, translating to an EPS of $0.99, which is a decrease from $63.88 million and $1.10 per share last year, indicating a weakening in profitability.
- Adjusted Earnings: Excluding items, adjusted earnings stood at $56.43 million or $0.98 per share, suggesting ongoing pressure on the company's core business performance, which may impact investor confidence.
- Revenue Growth: Despite the earnings decline, the company achieved a 3.5% year-over-year revenue increase to $139.06 million, up from $134.37 million last year, indicating potential for sales growth.
- Market Reaction: The earnings drop may raise concerns in the market regarding First Merchants' future performance, especially amid increasing economic uncertainty, prompting investors to reassess their strategies.
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.
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.
Upcoming Ex-Dividend Dates for First Merchants, Mercantile Bank, and Universal Insurance Holdings
Upcoming Ex-Dividend Dates: First Merchants Corp (FRME), Mercantile Bank Corp. (MBWM), and Universal Insurance Holdings Inc (UVE) will trade ex-dividend on 12/5/25, with respective dividends of $0.36, $0.38, and $0.16 scheduled for payment on 12/19/25, 12/17/25, and 12/12/25.
Expected Price Adjustments: Following the ex-dividend date, FRME shares are expected to open 0.98% lower, MBWM by 0.82%, and UVE by 0.49%, based on their recent stock prices.
Dividend Yield Estimates: The estimated annualized yields for the upcoming dividends are 3.91% for First Merchants Corp, 3.27% for Mercantile Bank Corp., and 1.96% for Universal Insurance Holdings Inc, reflecting their historical dividend stability.
Current Trading Performance: As of Wednesday trading, shares of First Merchants Corp are down about 1%, Mercantile Bank Corp. down 0.2%, and Universal Insurance Holdings Inc down 0.5%.
Zacks Value Investor Spotlight: Truist Financial, First Merchants, Valley National, Simmons First National, and Prosperity Bancshares
Podcast Overview: The Zacks Value Investor podcast, hosted by Tracey Ryniec, discusses value investing strategies and stock picks, focusing on finding quality value stocks for 2026 amidst a market dominated by growth stocks.
Banking Sector Insights: While mega-cap banks like JPMorgan Chase and Bank of America are currently favored, value investors are encouraged to explore regional and community banks, which may offer better value with lower price-to-book (P/B) ratios.
Highlighted Banks: Several banks are identified as potential investment opportunities, including Truist Financial, First Merchants, Valley National Bancorp, Simmons First National, and Prosperity Bancshares, all of which have favorable earnings growth projections and attractive dividends.
Investment Strategy: The podcast emphasizes the importance of using the P/B ratio for evaluating banks and suggests that investors should consider overlooked banks that are currently undervalued in the market.
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.
First Merchants Reports Decline in Q4 Earnings
- Earnings Decline: First Merchants Corporation reported a net income of $56.60 million for Q4, translating to an EPS of $0.99, which is a decrease from $63.88 million and $1.10 per share last year, indicating a weakening in profitability.
- Adjusted Earnings: Excluding items, adjusted earnings stood at $56.43 million or $0.98 per share, suggesting ongoing pressure on the company's core business performance, which may impact investor confidence.
- Revenue Growth: Despite the earnings decline, the company achieved a 3.5% year-over-year revenue increase to $139.06 million, up from $134.37 million last year, indicating potential for sales growth.
- Market Reaction: The earnings drop may raise concerns in the market regarding First Merchants' future performance, especially amid increasing economic uncertainty, prompting investors to reassess their strategies.
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.
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.
Upcoming Ex-Dividend Dates for First Merchants, Mercantile Bank, and Universal Insurance Holdings
Upcoming Ex-Dividend Dates: First Merchants Corp (FRME), Mercantile Bank Corp. (MBWM), and Universal Insurance Holdings Inc (UVE) will trade ex-dividend on 12/5/25, with respective dividends of $0.36, $0.38, and $0.16 scheduled for payment on 12/19/25, 12/17/25, and 12/12/25.
Expected Price Adjustments: Following the ex-dividend date, FRME shares are expected to open 0.98% lower, MBWM by 0.82%, and UVE by 0.49%, based on their recent stock prices.
Dividend Yield Estimates: The estimated annualized yields for the upcoming dividends are 3.91% for First Merchants Corp, 3.27% for Mercantile Bank Corp., and 1.96% for Universal Insurance Holdings Inc, reflecting their historical dividend stability.
Current Trading Performance: As of Wednesday trading, shares of First Merchants Corp are down about 1%, Mercantile Bank Corp. down 0.2%, and Universal Insurance Holdings Inc down 0.5%.
Zacks Value Investor Spotlight: Truist Financial, First Merchants, Valley National, Simmons First National, and Prosperity Bancshares
Podcast Overview: The Zacks Value Investor podcast, hosted by Tracey Ryniec, discusses value investing strategies and stock picks, focusing on finding quality value stocks for 2026 amidst a market dominated by growth stocks.
Banking Sector Insights: While mega-cap banks like JPMorgan Chase and Bank of America are currently favored, value investors are encouraged to explore regional and community banks, which may offer better value with lower price-to-book (P/B) ratios.
Highlighted Banks: Several banks are identified as potential investment opportunities, including Truist Financial, First Merchants, Valley National Bancorp, Simmons First National, and Prosperity Bancshares, all of which have favorable earnings growth projections and attractive dividends.
Investment Strategy: The podcast emphasizes the importance of using the P/B ratio for evaluating banks and suggests that investors should consider overlooked banks that are currently undervalued in the market.
