--- title: "First Merchants Pref Share FRMEP 7.5 Perp 08/15/25 | 8-K: FY2025 Q4 Revenue: USD 270.55 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/273746991.md" datetime: "2026-01-26T21:11:29.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/273746991.md) - [en](https://longbridge.com/en/news/273746991.md) - [zh-HK](https://longbridge.com/zh-HK/news/273746991.md) generator: "portal-rs" --- # First Merchants Pref Share FRMEP 7.5 Perp 08/15/25 | 8-K: FY2025 Q4 Revenue: USD 270.55 M Revenue: As of FY2025 Q4, the actual value is USD 270.55 M. EPS: As of FY2025 Q4, the actual value is USD 0.99. EBIT: As of FY2025 Q4, the actual value is USD -73.57 M. #### Net Income and Earnings Per Share First Merchants Corp Depositary Shs Repr 1/100th 7.5% 7.50% Non-Cum Red Perp Pfd Rg Shs Ser -A- reported a record full-year net income available to common stockholders of $224.1 million and diluted EPS of $3.88 for 2025, representing a 13.8% EPS growth over the prior year. For the fourth quarter of 2025, net income available to common stockholders was $56.6 million, with diluted earnings per common share totaling $0.99, compared to $56.3 million and $0.98, respectively, in the third quarter of 2025, and $63.9 million and $1.10 in the fourth quarter of 2024. Adjusted net income available to common stockholders for Q4 2025 was $56.4 million, and adjusted diluted earnings per common share totaled $0.98, against $57.0 million and $0.99 in Q3 2025, and $58.1 million and $1.00 per common share for Q4 2024. Net Income for the fourth quarter increased by $0.3 million (0.5%) to $57.1 million compared to the prior quarter. Year-to-date, net income increased by $24.6 million (12.2%) to $226.0 million. #### Capital Position The Corporation maintained a robust capital position for Q4 2025, with a Common Equity Tier 1 Capital Ratio of 11.70% (target 10.00%), a Tangible Common Equity to Tangible Assets Ratio of 9.38% (target 8.00%), and a total risk-based capital ratio of 13.41% (target 12.50%). The Tangible Common Equity (TCE) ratio increased by 0.20% on a linked quarter basis and by 0.57% year-over-year. Total Equity increased by $54.3 million (9.0% annualized) to $2,466.7 million on a linked quarter basis, and by $161.7 million (7.0%) year-to-date. #### Share Repurchases First Merchants Corp Depositary Shs Repr 1/100th 7.5% 7.50% Non-Cum Red Perp Pfd Rg Shs Ser -A- repurchased 1,211,224 shares totaling $46.9 million year-to-date in 2025. During the fourth quarter of 2025, 271,953 shares were repurchased, totaling $10.4 million. #### Loan and Deposit Growth Total loans grew by $197.4 million, or 5.8% annualized, on a linked quarter basis, reaching $13.8 billion at quarter-end. Year-to-date, total loans increased by $938.8 million, or 7.3%. Total deposits increased by $424.9 million, or 11.4% annualized, on a linked quarter basis, reaching $15.3 billion. Year-to-date, total deposits increased by $773.2 million, or 5.3%. The loan to deposit ratio decreased to 90.3% at period end from 91.6% in the prior quarter. Commercial loans grew by $852 million or 8.8% year-to-date, led by C&I lending at $699 million or 13.3%. #### Asset Quality Nonperforming assets to total assets were 0.38% (38 basis points) for Q4 2025, compared to 0.36% (36 basis points) on a linked quarter basis and 0.43% (43 basis points) as of Q4 2024, reflecting stable credit performance. The Allowance for Credit Losses – Loans (ACL) totaled $195.6 million as of quarter-end, or 1.42% of total loans, an increase of $1.1 million from the prior quarter. Net charge-offs totaled $6.0 million, and a provision for credit losses of $7.2 million was recorded during the quarter. Reserves for unfunded commitments remained unchanged from the prior quarter at $18.0 million. Non-Accrual Loans were $71.8 million, and NPAs + 90PD totaled $74.5 million in Q4 2025. #### Net Interest Income and Margin Net interest income for Q4 2025 totaled $139.1 million, an increase of $5.4 million (4.0%) compared to the prior quarter and $4.7 million (3.5%) compared to Q4 2024. This was positively impacted by an interest recovery of $3.3 million from a successful resolution of a nonaccrual commercial real estate loan. The fully tax equivalent net interest margin (NIM) was 3.29%, an increase of five basis points compared to the prior quarter and one basis point compared to Q4 2024. Year-to-date, net interest income increased by $14.9 million (2.9%) to $536.0 million, with an FTE NIM of 3.25%. #### Noninterest Income and Expense Total noninterest income for Q4 2025 was $33.1 million, an increase of $0.6 million compared to Q3 2025, driven by higher customer-related fees (wealth management and card payment fees) and increased gains on mortgage loan sales. The $9.6 million decrease from Q4 2024 was primarily due to a $20.0 million gain on the sale of five Illinois branches in December 2024. Total noninterest expense was $99.5 million for Q4 2025, an increase of $3.0 million from Q3 2025 and $3.2 million from Q4 2024. The linked quarter increase was due to higher health insurance, software, and credit costs, including $0.5 million in acquisition-related costs, partially offset by a $0.7 million reduction in an FDIC special assessment accrual. Year-to-date, noninterest income increased by $1.3 million (1.0%) to $126.9 million, and noninterest expense increased by $3.2 million (0.8%) to $382.5 million. #### Operational Efficiency The efficiency ratio totaled 54.52% for Q4 2025, a decrease of 0.57% from the prior quarter. The year-to-date efficiency ratio was 54.54%. #### Other Key Financial Metrics As of December 31, 2025, total assets were $19.0 billion, with assets under advisement at $19.0 billion and assets under management at $4.2 billion. The year-to-date Return on Average Assets (ROAA) was 1.21%, Return on Equity (ROE) was 9.43%, and Return on Tangible Common Equity (ROTCE) was 14.08%. For Q4 2025, annualized ROAA was 1.20%, ROE was 9.23%, and ROTCE was 13.57%. The dividend per share for Q4 2025 was $0.36, with a dividend payout ratio of 36.4%. The total investment portfolio was $3.4 billion, with a net unrealized Available-for-Sale (AFS) loss of -$166.9 million and a net unrealized Held-to-Maturity (HTM) loss of -$253.5 million. #### Outlook / Guidance First Merchants Corp Depositary Shs Repr 1/100th 7.5% 7.50% Non-Cum Red Perp Pfd Rg Shs Ser -A- received regulatory approval for the acquisition of First Savings Financial Group, Inc., which is expected to close on February 1, 2026. This acquisition is anticipated to add approximately $2.4 billion in assets and expand the Corporation’s presence into Southern Indiana and the Louisville MSA. The company’s strategic imperatives include driving organic growth, investing in digital delivery channels, maintaining top-quartile financial results, and leveraging acquisitions to enhance growth and efficiency. ### Related Stocks - [FRMEP.US](https://longbridge.com/en/quote/FRMEP.US.md) ## Related News & Research - [3,759 Shares in Ferrari N.V. $RACE Acquired by X Square Capital LLC](https://longbridge.com/en/news/296700358.md) - [Powerful Growth, Multiple Endorsements Bode Well for Oracle Stock](https://longbridge.com/en/news/296686709.md) - [Korea Investment CORP Increases Stock Position in L3Harris Technologies Inc $LHX](https://longbridge.com/en/news/296698330.md) - [Johnson & Johnson $JNJ Position Reduced by Oppenheimer Asset Management Inc.](https://longbridge.com/en/news/296697035.md) - [Danske Bank A S Invests $252.05 Million in Bank of America Corporation $BAC](https://longbridge.com/en/news/296695181.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**