--- title: "First Merchants Pref Share FRMEP 7.5 Perp 08/15/25 | 8-K: FY2026 Q1 Revenue: USD 254.4 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/283719451.md" datetime: "2026-04-22T20:25:41.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/283719451.md) - [en](https://longbridge.com/en/news/283719451.md) - [zh-HK](https://longbridge.com/zh-HK/news/283719451.md) --- # First Merchants Pref Share FRMEP 7.5 Perp 08/15/25 | 8-K: FY2026 Q1 Revenue: USD 254.4 M Revenue: As of FY2026 Q1, the actual value is USD 254.4 M. EPS: As of FY2026 Q1, the actual value is USD 0.45. EBIT: As of FY2026 Q1, the actual value is USD -124.22 M. #### Segment Revenue Net interest income for the first quarter of 2026 was $151.3 million, an increase of $12.2 million (8.8%) compared to the prior quarter and $21.0 million (16.1%) compared to the first quarter of 2025.On a fully taxable equivalent (FTE) basis, net interest income was $157.7 million in the first quarter of 2026, up from $145.3 million in the fourth quarter of 2025.Noninterest income totaled $5.8 million in the first quarter of 2026, a decrease of -$27.3 million compared to the prior quarter and -$24.2 million compared to the first quarter of 2025, primarily due to a valuation adjustment on mortgage loans reclassified to held-for-sale.Excluding the -$29.8 million loss on reclassified mortgage loans, noninterest income increased by $2.5 million, or 7.6%.Customer-related fees increased by $1.8 million from the previous quarter and $4.7 million over the first quarter of 2025, driven by higher wealth management fees and gains on loan sales, partially offset by a slight reduction in derivative hedge fees. #### Operational Metrics Net income available to common stockholders was $27.7 million for the first quarter of 2026, compared to $56.6 million in the fourth quarter of 2025 and $54.9 million in the first quarter of 2025.On an adjusted basis, net income totaled $63.1 million in the first quarter of 2026, compared to $56.4 million in the prior quarter.Diluted earnings per common share totaled $0.45 in the first quarter of 2026, down from $0.94 in the first quarter of 2025.Adjusted earnings per common share for the first quarter of 2026 totaled $1.03, an increase of 9.6% from $0.94 in the prior year period, excluding acquisition costs of $17.0 million and a mark-to-market loss of -$29.8 million on mortgage loans moved to held-for-sale.The adjusted efficiency ratio totaled 54.21% for the quarter.The reported efficiency ratio was 74.45%, which decreased to an adjusted efficiency ratio of 54.21% when excluding acquisition-related expenses and the mortgage loan reclassification.Reported Return on Average Equity (ROE) was 4.17%, and Return on Tangible Common Equity (ROTCE) was 6.39%.Adjusted ROE and ROTCE were 9.51% and 14.07%, respectively.Reported Return on Average Assets (ROA) was 0.55%, and adjusted ROA was 1.25%.Nonperforming assets to total assets were 43 basis points, compared to 38 basis points in the prior quarter.The fully taxable equivalent net interest margin was 3.35%, an increase of six basis points compared to the prior quarter and 13 basis points compared to the first quarter of 2025.Noninterest expense totaled $125.1 million, an increase of $25.6 million from the fourth quarter of 2025 and $32.2 million from the first quarter of 2025.Acquisition-related costs amounted to $17.0 million, including $5.2 million for salaries and benefits and $11.3 million for professional and other outside services.Pre-tax income was $27.1 million in the first quarter of 2026, a decrease of $38.4 million or -58.6% from $65.5 million in the fourth quarter of 2025. #### Cash Flow The provided text does not contain specific cash flow data. #### Unique Metrics First Merchants Corp Depositary Shs Repr 1/100th 7.5% 7.50% Non-Cum Red Perp Pfd Rg Shs Ser -A- completed the legal closing on the acquisition of First Savings Financial Group, Inc. on February 1, 2026.First Merchants Corp Depositary Shs Repr 1/100th 7.5% 7.50% Non-Cum Red Perp Pfd Rg Shs Ser -A- repurchased 708,856 shares totaling $27.6 million of common stock year-to-date, including 640,486 shares totaling $24.9 million in the first quarter.Total assets equaled $21.1 billion as of March 31, 2026.Total loans were $15.3 billion as of March 31, 2026, declining -$18.8 million, or -0.5% annualized linked quarter, and increasing $768.0 million, or 5.9%, during the last twelve months, excluding $1.8 billion of loans added from the First Savings acquisition.Total loans increased by $1,450.1 million or 42.0% annually to $15,261.9 million in the first quarter of 2026 from $13,811.8 million in the fourth quarter of 2025.The total loan portfolio composition was approximately 77% commercial-oriented, with a total loan yield of 6.09%.Total deposits were $16.5 billion as of March 31, 2026, declining -$499.4 million, or -13.1% annualized linked quarter, and increasing $333.5 million, or 2.3%, during the last twelve months, excluding $1.7 billion of deposits added from the First Savings acquisition.Total deposits increased by $1,190.7 million or 31.1% annually to $16,485.6 million in the first quarter of 2026 from $15,294.9 million in the fourth quarter of 2025.The company maintains a strong core deposit base with 90% core deposits and 23% noninterest-bearing deposits.Nonperforming assets to total assets were 0.43%, an increase of five basis points compared to 0.38% in the prior quarter.The loan to deposit ratio increased to 92.6% from 90.3% in the prior quarter.Allowance for Credit Losses – Loans (ACL) totaled $212.5 million, or 1.39% of loans, an increase of $16.9 million from the prior quarter.The ACL increased $22.3 million due to the purchase accounting adjustment for estimated credit losses from the First Savings loan portfolio.Net charge-offs totaled $10.3 million.Provision for credit losses of $4.9 million was recorded during the quarter.Reserves for unfunded commitments totaled $18.5 million, an increase of $0.5 million from the prior quarter.The Common Equity Tier 1 Capital Ratio was maintained at 11.22%.The Corporation’s total risk-based capital ratio was 13.05%.The tangible common equity ratio was 9.00%.Tangible Book Value per share was $29.34, a decrease of 2.8% from the prior quarter.Investment securities totaled $3.3 billion, decreasing -$117.2 million, or -3.4%, over the last twelve months, and -$68.7 million, or -8.1% annualized, on a linked quarter basis due to principal paydowns, maturities, and a modest decline in valuation.The investment portfolio had a yield of 2.63% in the first quarter of 2026, and included a net unrealized AFS loss of - $190.6 million and a net unrealized HTM loss of - $276.8 million.Assets Under Advisement stood at $21.1 billion.The dividend yield was 3.72%, and the market capitalization was $2.4 billion. #### Outlook / Guidance The loan sale is expected to close during the second quarter, which will create incremental funding capacity.First Merchants Corp Depositary Shs Repr 1/100th 7.5% 7.50% Non-Cum Red Perp Pfd Rg Shs Ser -A-’s capital, liquidity, and credit quality remain very strong, positioning the company for continued growth and long-term shareholder value creation.The acquisition of First Savings is anticipated to further strengthen the company’s statewide Indiana presence and enhance its ability to serve clients across Indiana, Ohio, and Michigan. ### Related Stocks - [FRMEP.US](https://longbridge.com/en/quote/FRMEP.US.md) ## Related News & Research - [Bermuda's Essent Group Q2 profit slips on higher 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