📈 Price History

Ratio Health

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— Good

— Average

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By Category

📊 Peer Medians

About

First Merchants Corporation operates as the financial holding company for First Merchants Bank that provides commercial and consumer banking services. The company offers a range of financial services, including checking, savings, and deposit products; debit and credit cards; mortgages, refinance, construction or renovation of residential properties, agricultural lending, treasury management services and depository products. It also provides personal and commercial wealth management services, brokerage, investment management, private banking, fiduciary estate, and financial planning services. The company operates banking locations in Indiana, Ohio, and Michigan counties. It offers its services through electronic and mobile delivery channels. First Merchants Corporation was founded in 1893 and is headquartered in Muncie, Indiana.

Key Ratios Snapshot

📈 Growth Pattern

⚡ Latest Quarter —

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📊 Quick Scorecard

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⭐ Superinvestors Holding FRME

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Manager	Shares	Value	% of Fund	Period
Steve Cohen Point72 Asset Management	104.6K	$4.1M	0.01%	Mar 2026
Jim Simons Renaissance Technologies LLC	18.8K	$728K	0.00%	Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

🔍 Concall Decoded

🎙 Management Tone Tracker Confident Specific → Stable 4 quarters analysed

Q2 2025

Confident Specific

Management repeatedly highlighted specific strong metrics: 9.1% annualized loan growth, $0.98 EPS, ROA 1.23%, and a 54% efficiency ratio. They attributed improvements to normalizing credit quality and disciplined expense management with concrete numbers.

Q3 2025

Confident Specific

Management used phrases like 'another great quarter', 'strong performance', and 'excited about acquisition' to convey enthusiasm. They highlighted specific metrics: 9% loan growth, ROA of 1.22%, efficiency ratio of 55%, and tangible book value growth.

Q4 2025

Confident Specific

Management repeatedly used 'record' (record assets, loans, deposits, net income, EPS) and 'momentum', and provided specific figures like $197M linked-quarter loan growth and 5.8% annualized growth, reflecting confidence and transparency.

Q1 2026 latest

Confident Specific

Management consistently used positive qualifiers ('strong', 'pleased', 'confident', 'bullish') and provided specific numbers (e.g., adjusted EPS $1.03 up 9.6%, margin up 6 bps, tangible book value dilution only 2.4% vs guided 4.8%). They repeatedly cited pricing discipline and execution on integration milestones.

Guidance Reliability Pending · <3Q data

Investor Lens

The investment thesis appears stronger after this call. Management delivered better-than-expected tangible book value dilution from the First Savings acquisition (2.4% vs 4.8% guided), demonstrating disciplined execution. The strategic mortgage sale reduces lower-yielding assets and provides liquidity for higher-yielding commercial loans, improving future NIM. Core deposit remixing (non-interest-bearing up to 23%) and disciplined deposit pricing are driving margin expansion. Credit quality remains stable with idiosyncratic charge-offs. The reiterated mid-single-digit loan growth target, combined with double-digit fee income growth and active buybacks, suggests EPS momentum can continue. Key items to watch next quarter: loan growth acceleration in Q2, expense trajectory post-integration, and credit migration from the First Savings portfolio.

AI-generated concall tone analysis · Updated 2026-06-09 · Not investment advice

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3-Statement Financial Model

Bear / Base / Bull projections · DCF fair value · Reverse-DCF

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🎙 Management Tone Confident Specific → Stable 4 quarters Full tone analysis in Intelligence →

📊 MIXED First Merchants reports Q1 2026 adjusted EPS $1.03, up 9.6% YoY; NIM expands to 3.35%

Revenue & Profitability

Reported net income was $27.7 million ($0.45 per diluted share), impacted by $17 million acquisition expenses and a $29.8 million repositioning charge. Adjusted earnings per share rose 9.6% year-over-year to $1.03. Net interest income on a fully tax-equivalent basis was $157.7 million, up $12.4 million linked quarter. Normalized non-interest income totaled $35.6 million. Pre-tax pre-provision earnings were $78.7 million, up $6.3 million sequentially. Tangible book value per share declined 2.8% linked quarter but increased 7.3% year-over-year.

Outlook

Management is optimistic about the remainder of 2026, citing a strengthening Midwest economy and expanding client businesses. They expect mid-single-digit loan growth for the full year and see net interest margin improving a few basis points in coming quarters as day-count effects reverse and deposit costs stabilize. Fee income is growing at double-digit rates across most categories. No macro headwinds were specifically highlighted, though ongoing credit risks remain idiosyncratic rather than systemic.

Growth Drivers

Key growth levers include organic loan growth driven by strong commercial pipelines, record production from real estate and asset-based lending teams, and the addition of new bankers in commercial and wealth management. The First Savings acquisition expands the company's presence in southern Indiana and adds SBA, first-lien HELOC, and triple net lease capabilities. The company is also active in share repurchases, with $24.9 million in Q1 and $27.6 million year-to-date.

Balance Sheet & CapEx

Not discussed in this earnings call.

Margins

Net interest margin was 3.35% in Q1, up 6 basis points linked quarter despite a 5 basis point headwind from fewer days. CFO Michele Kawiecki expects margin to tick up a few basis points through the rest of the year, driven by normal day-count patterns and stable deposit costs. Legacy First Merchants expenses are expected to increase 3-5% year-over-year, with a full-quarter run rate of total expenses between $111 million and $114 million after cost synergies from the acquisition.

Key Risks

Key risks flagged include: credit quality – charge-offs in Q1 were elevated due to two idiosyncratic names, but asset quality remains stable with no broad-based deterioration; acquisition integration risk is being managed with minimal personnel turnover; and capital planning sensitivity to the final Basel III proposal, which management estimates could benefit capital ratios by 50-80 basis points. The mortgage loan repositioning has a four-year tangible book value earn-back period.

Generated by AI · Q1 2026 results · Not investment advice

✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter

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📞 Earnings Call Transcripts (5)

Q2 2026 Q2 2026 2026-07-23

Second quarter results showed strong revenue and margin growth, with adjusted pre-tax, pre-provision earnings up 7.5% sequentially. Asset quality was impacted by two large commercial credits, but overall portfolio performance remains stable. Share repurchases and integration of the First Savings acquisition support a positive outlook for the remainder of 2026.

Q1 2026 Q1 2026 2026-04-23

Q1 results reflect strong adjusted earnings, successful First Savings integration, and robust capital. Loan growth is expected to accelerate, margin to improve, and fee income to rise, with stable asset quality and continued share repurchases supporting 2026 outlook.

Q4 2025 Q4 2025 2026-01-27

Record net income, assets, and loan growth were achieved in 2025, with strong operating leverage and robust asset quality. The First Savings Group acquisition will close in early 2026, supporting further growth, while efficiency and capital ratios remain strong.

Q3 2025 Q3 2025 2025-10-23

Q3 saw robust loan and deposit growth, with net income up 23.5% year-over-year and stable margins. The First Savings acquisition will expand SBA lending and fee income, while capital and credit metrics remain strong. Focus remains on organic growth and integration.

Q2 2025 Q2 2025 2025-07-24

Q2 net income rose 43% year-over-year on strong loan growth and improved credit quality, with continued margin and deposit cost pressures expected in the second half. Capital and expense management remain disciplined, supporting ongoing organic growth and selective M&A.

📊 Analysis Methodology

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