First Merchants Corporation Announces Fourth Quarter 2025 Earnings Per Share

Rhea-AI Summary

First Merchants (NASDAQ: FRME) reported record full‑year 2025 results with net income available to common stockholders of $224.1M and diluted EPS of $3.88. For Q4 2025, net income was $56.6M and diluted EPS was $0.99. Loans totaled $13.8B (up $938.8M, or 7.3% YoY) and deposits were $15.3B (up $773.2M, or 5.3% YoY). Capital remained strong with CET1 of 11.70% and tangible common equity of 9.38%. The company repurchased 1,211,224 shares for $46.9M YTD and received regulatory approval to acquire First Savings Financial Group, adding ~$2.4B in assets with expected closing on Feb 1, 2026.

Positive

• Full‑year 2025 net income of $224.1M
• Full‑year 2025 diluted EPS of $3.88
• Loans grew 7.3% YoY (+$938.8M)
• Repurchased 1,211,224 shares totaling $46.9M YTD
• Regulatory approval to acquire First Savings adding ~$2.4B in assets (expected close Feb 1, 2026)

Negative

• Q4 2025 net income declined from $63.9M in Q4 2024 to $56.6M (down >10% YoY)
• Noninterest income decreased by $9.6M YoY due to prior‑year branch sale gain

News Market Reaction

+0.47%

1 alert

+0.47% News Effect

On the day this news was published, FRME gained 0.47%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

2025 net income: $224.1M 2025 diluted EPS: $3.88 Q4 2025 net income: $56.6M +5 more

8 metrics

2025 net income $224.1M Net income available to common stockholders for full year 2025

2025 diluted EPS $3.88 Diluted earnings per share for full year 2025

Q4 2025 net income $56.6M Net income available to common stockholders in Q4 2025

Q4 2025 diluted EPS $0.99 Diluted earnings per common share in Q4 2025

CET1 ratio 11.70% Common Equity Tier 1 Capital Ratio at Q4 2025 quarter-end

Loan growth $938.8M (7.3%) Total loan growth over the last twelve months

Total deposits $15.3B Total deposits as of Q4 2025 quarter-end

Net interest margin 3.29% Fully tax equivalent net interest margin in Q4 2025

Market Reality Check

Price: $41.64 Vol: Volume 268,487 is slightl...

normal vol

$41.64 Last Close

Volume Volume 268,487 is slightly above the 20-day average of 257,817, suggesting only modestly elevated trading. normal

Technical Price at $38.09 is trading just above the 200-day MA of $38.02 and about 16.51% below the 52-week high.

Peers on Argus

FRME fell 3.91% with several regional bank peers also down: CUBI -3.12%, EFSC -3...

FRME fell 3.91% with several regional bank peers also down: CUBI -3.12%, EFSC -3.4%, FBNC -4.61%, TRMK -3.38%, while PPBI rose 0.56%. This points to a broader regional bank downdraft alongside company-specific earnings news.

Previous Earnings Reports

5 past events · Latest: Oct 22 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Oct 22	Quarterly earnings	Positive	-0.5%	3Q2025 EPS growth and loan/deposit expansion with announced First Savings deal.
Jul 23	Quarterly earnings	Positive	-3.7%	Strong 2Q2025 net income, EPS $0.98, and robust loan/deposit growth.
Apr 24	Quarterly earnings	Positive	-1.1%	Q1 2025 EPS increase with solid loan growth and strong capital ratios.
Jan 30	Quarterly earnings	Positive	+3.5%	Q4 2024 EPS $1.10, margin improvement, and Illinois branch sale gain.
Oct 24	Quarterly earnings	Positive	-3.6%	Q3 2024 results with higher adjusted earnings and announced branch sale.

Pattern Detected

Earnings releases have often been followed by negative price reactions despite generally strong metrics, indicating a pattern of post-earnings weakness.

Recent Company History

Across the last five earnings releases from Oct 2024 through Oct 2025, First Merchants consistently reported solid profitability, loan growth, and capital ratios, including EPS in the $0.84–$1.10 range and Common Equity Tier 1 ratios around 11.25–11.50%. Only the Q4 2024 report saw a notably positive +3.51% next-day move, while other earnings dates produced declines. Today’s record 2025 results and stable credit fit this operational trajectory, even as the share price moved lower again.

Historical Comparison

+2.5% avg move · Past earnings headlines moved FRME about 2.49% on average, often to the downside. Today’s -3.91% rea...

earnings

+2.5%

Average Historical Move earnings

Past earnings headlines moved FRME about 2.49% on average, often to the downside. Today’s -3.91% reaction to record 2025 results continues that pattern of post-earnings weakness.

Through 2025, FRME’s quarterly results showed steady EPS around the mid‑$0.90s with growing loans and solid capital, culminating in record full‑year net income of $224.1M and EPS of $3.88, alongside advancement of the First Savings acquisition toward closing.

Market Pulse Summary

This announcement highlights record 2025 earnings with net income of $224.1M and diluted EPS of $3.8...

Analysis

This announcement highlights record 2025 earnings with net income of $224.1M and diluted EPS of $3.88, alongside Q4 EPS of $0.99. Balance sheet trends were constructive, with loans up $938.8M (7.3% over twelve months) and deposits at $15.3B. Capital remained strong, including a 11.70% CET1 ratio and 9.38% tangible common equity to tangible assets. Investors may focus on credit quality metrics, such as 0.38% nonperforming assets, and the planned First Savings acquisition closing on February 1, 2026.

Key Terms

common equity tier 1 capital ratio, tangible common equity to tangible assets ratio, nonperforming assets, efficiency ratio, +4 more

8 terms

common equity tier 1 capital ratio financial

"Robust capital position with Common Equity Tier 1 Capital Ratio of 11.70%..."

A bank’s common equity tier 1 (CET1) capital ratio measures the size of its strongest loss-absorbing capital—mainly common shares and retained earnings—relative to the bank’s assets after adjusting those assets for how risky they are (riskier loans count more). Think of it as the safety cushion compared with the weight of risky business; investors use it to judge a bank’s ability to survive losses, meet rules, and sustain dividends or growth.

tangible common equity to tangible assets ratio financial

"...and Tangible Common Equity to Tangible Assets Ratio of 9.38%."

Tangible common equity to tangible assets ratio measures how much of a company’s physical, measurable assets are funded by the pure ownership stake of common shareholders after removing intangible items like goodwill and patents. Investors use it like a safety cushion gauge: a higher ratio means more real, recoverable value backing assets and greater capacity to absorb losses, while a lower ratio suggests higher leverage or reliance on non-physical value.

nonperforming assets financial

"Nonperforming assets to total assets were 38 basis points compared to 36..."

Nonperforming assets are loans or investments that are not generating expected payments or returns because the borrower has fallen behind on payments or the investment has lost value. They matter to investors because a high level of nonperforming assets can indicate financial trouble for a bank or institution, potentially affecting its stability and profitability.

efficiency ratio financial

"The efficiency ratio totaled 54.52% for the quarter."

A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.

allowance for credit losses financial

"The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $195.6 million..."

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

net charge-offs financial

"Net charge-offs totaled $6.0 million and provision for credit losses of $7.2 million..."

Net charge-offs are the amount of loans or credit a lender removes from its books as uncollectible after subtracting any money later recovered from previously written-off accounts. Think of it like a store writing off unpaid tabs but getting back a few dollars later — the net figure shows the real loss. Investors watch this to judge a lender’s loan quality, future profits and how much capital may be needed to cover bad debts.

provision for credit losses financial

"Net charge-offs totaled $6.0 million and provision for credit losses of $7.2 million..."

Provision for credit losses is an amount set aside by a financial institution to cover potential future losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution manage risks and stay financially healthy. For investors, it signals how cautious a lender is about potential loan defaults and can impact the company's profitability and financial stability.

net interest margin financial

"Fully tax equivalent net interest margin was 3.29%, an increase of five basis points..."

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

AI-generated analysis. Not financial advice.

MUNCIE, Ind., Jan. 26, 2026 (GLOBE NEWSWIRE) -- First Merchants Corporation (NASDAQ - FRME) (the "Corporation")

Achieved record full‑year results, including net income available to common stockholders of $224.1 million and diluted EPS of $3.88 for 2025.

Fourth Quarter 2025 Highlights:

• Net income available to common stockholders was $56.6 million and diluted earnings per common share totaled $0.99, compared to $56.3 million and $0.98 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 stockholders¹ was $56.4 million and adjusted diluted earnings per common share¹ totaled $0.98, compared to $57.0 million and $0.99 in the third quarter of 2025, and $58.1 million and $1.00 per common share for the fourth quarter of 2024.
• Robust capital position with Common Equity Tier 1 Capital Ratio of 11.70% and Tangible Common Equity to Tangible Assets Ratio of 9.38%.
• Repurchased 1,211,224 shares totaling $46.9 million year-to-date; repurchased 271,953 shares totaling $10.4 million during the fourth quarter.
• Total loans grew $197.4 million, or 5.8% annualized, on a linked quarter basis, and $938.8 million, or 7.3%, during the last twelve months.
• Total deposits increased $424.9 million, or 11.4% annualized, on a linked quarter basis, and $773.2 million, or 5.3%, during the last twelve months.
• Nonperforming assets to total assets were 38 basis points compared to 36 basis points on a linked quarter basis and 43 basis points as of the fourth quarter of 2024.
• The efficiency ratio totaled 54.52% for the quarter.
• Received regulatory approval of the acquisition of First Savings Financial Group, Inc. adding approximately $2.4 billion in assets and expanding the Corporation's presence into Southern Indiana and the Louisville MSA. Closing is expected on February 1, 2026.

"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, Chief Executive Officer. "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."

Fourth Quarter Financial Results:

First Merchants Corporation (the “Corporation”) reported fourth quarter 2025 net income available to common stockholders of $56.6 million compared to $63.9 million during the same period in 2024. Diluted earnings per common share for the period totaled $0.99 compared to $1.10 in the fourth quarter of 2024. During the fourth quarter of 2024, the Corporation completed the sale of five Illinois branches, including $7.4 million of loans and $267.4 million of deposits, generating a $20.0 million gain recorded in noninterest income. Excluding non-core income and expenses incurred in each period, adjusted earnings per common share¹ for the fourth quarter 2025 totaled $0.98 compared to $1.00 in the prior year period.

Total assets of the Corporation equaled $19.0 billion as of quarter-end and loans totaled $13.8 billion.   During the past twelve months, total loans grew by $938.8 million, or 7.3%. On a linked quarter basis, loans grew $197.4 million, or 5.8% annualized.

Investments, totaling $3.4 billion, decreased $82.1 million, or 2.4%, during the last twelve months and were flat on a linked quarter basis. Investments declined during the quarter due to principal paydowns and maturities; however, the decline was offset by an increase in the securities portfolio valuation.

Total deposits equaled $15.3 billion as of quarter-end and increased by $773.2 million, or 5.3%, over the past twelve months. On a linked quarter basis, deposits increased $424.9 million, or 11.4% annualized.   The loan to deposit ratio decreased to 90.3% at period end from 91.6% in the prior quarter.

The Corporation’s 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 prior quarter. Net charge-offs totaled $6.0 million and provision for credit losses of $7.2 million was recorded during the quarter. Reserves for unfunded commitments totaled $18.0 million and remained unchanged from the prior quarter. Non-performing assets to total assets were 0.38% for the fourth quarter of 2025, compared to 0.36% in the prior quarter, reflecting stable credit performance.

Net interest income, totaling $139.1 million for the quarter, increased $5.4 million, or 4.0%, compared to prior quarter and increased $4.7 million, or 3.5%, compared to the fourth quarter of 2024. Positively impacting net interest income was an interest recovery of $3.3 million recorded during the current quarter from the successful resolution of a nonaccrual commercial real estate loan. Fully tax equivalent net interest margin was 3.29%, an increase of five basis points compared to prior quarter, and an increase of one basis point compared to the fourth quarter of 2024.

Noninterest income totaled $33.1 million for the quarter, an increase of $0.6 million compared to the third quarter of 2025 and a decrease of $9.6 million from the fourth quarter of 2024. The linked quarter increase was driven by higher customer-related fees including wealth management and card payment fees, as well as higher gains on the sales of mortgage loans. The decrease from the fourth quarter of prior year was driven by a gain on the sale of five Illinois branches to Old Second National Bank on December 6, 2024. Customer-related fees increased $0.7 million over the fourth quarter of prior year.

Noninterest expense totaled $99.5 million for the quarter, an increase of $3.0 million from the third quarter of 2025 and an increase of $3.2 million from the fourth quarter of 2024. The linked quarter increase was from higher health insurance, software and credit costs. Additionally, $0.5 million of acquisition-related costs were recorded in the current quarter. Offsetting these increases was a $0.7 million reduction of an FDIC special assessment accrual that was originally recorded in the first quarter of 2024 following the bank failures of 2023. The increase from the fourth quarter of 2024 was due to higher salaries, employee benefits and data processing costs offset by the reduction of the FDIC special assessment accrual.

The Corporation’s total risk-based capital ratio equaled 13.41%, common equity tier 1 capital ratio equaled 11.70%, and the tangible common equity ratio totaled 9.38%. These ratios continue to reflect the Corporation’s strong capital position.

¹ See “Non-GAAP Financial Information” for reconciliation

CONFERENCE CALL

First Merchants Corporation will conduct a fourth quarter earnings conference call and webcast at 9:00 a.m. (ET) on Tuesday, January 27, 2026.

To access via phone, participants will need to register using the following link where they will be provided a phone number and access code: (https://register-conf.media-server.com/register/BI2b60181d46504632aa732ea584590460)

To view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/o68enev5) during the time of the call. A replay of the webcast will be available until January 27, 2027.

Detailed financial results are reported on the attached pages.

About First Merchants Corporation

First Merchants Corporation is a financial holding company headquartered in Muncie, Indiana. The Corporation has one full-service bank charter, First Merchants Bank. The Bank also operates as First Merchants Private Wealth Advisors (as a division of First Merchants Bank).

First Merchants Corporation’s common stock is traded on the NASDAQ Global Select Market System under the symbol FRME. Quotations are carried in daily newspapers and can be found on the company’s Internet web page (http://www.firstmerchants.com).

FIRST MERCHANTS and the Shield Logo are federally registered trademarks of First Merchants Corporation.

Forward-Looking Statements

This news release contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can often, but not always, be identified by the use of words like “believe”, “continue”, “pattern”, “estimate”, “project”, “intend”, “anticipate”, “expect” and similar expressions or future or conditional verbs such as “will”, “would”, “should”, “could”, “might”, “can”, “may”, or similar expressions. These forward- looking statements include, but are not limited to, statements relating to the expected timing and benefits of the proposed merger between First Merchants and First Savings, including future financial and operating results, cost savings, enhanced revenues, and accretion/dilution to reported earnings that may be realized from the proposed merger, as well as other statements of expectations regarding the proposed merger, and other statements of First Merchants’ goals, intentions and expectations; statements regarding the First Merchants’ business plan and growth strategies; statements regarding the asset quality of First Merchants’ loan and investment portfolios; and estimates of First Merchants’ risks and future costs and benefits, whether with respect to the proposed merger or otherwise. These forward-looking statements are subject to significant risks, assumptions and uncertainties that may cause results to differ materially from those set forth in forward-looking statements, including, among other things: the risk that the businesses of First Merchants and First Savings will not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; expected revenue synergies and cost savings from the proposed merger may not be fully realized or realized within the expected time frame; revenues following the proposed merger may be lower than expected; customer and employee relationships and business operations may be disrupted by the proposed merger; the ability to complete the proposed merger on the expected timeframe; possible changes in monetary and fiscal policies, and laws and regulations; the effects of easing restrictions on participants in the financial services industry; the cost and other effects of legal and administrative cases; possible changes in the credit-worthiness of customers and the possible impairment of collectability of loans; fluctuations in market rates of interest; competitive factors in the banking industry; changes in the banking legislation or regulatory requirements of federal and state agencies applicable to bank holding companies and banks like First Merchants’ affiliate bank; continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; changes in market, economic, operational, liquidity (including the ability to grow and maintain core deposits and retain large uninsured deposits), credit and interest rate risks associated with First Merchants’ business; the impacts of epidemics, pandemics or other infectious disease outbreaks; and other risks and factors identified in each of First Merchants’ filings with the SEC. Neither First Merchants nor First Savings undertakes any obligation to update any forward-looking statement, whether written or oral, relating to the matters discussed in this news release. In addition, the companies’ respective past results of operations do not necessarily indicate their anticipated future results, whether or not the proposed merger is completed.

Non-GAAP Financial Measures

This news release contains non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of the registrant’s historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet or statement of cash flows (or equivalent statements) of the issuer; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. In this regard, GAAP refers to generally accepted accounting principles in the United States. Pursuant to the requirements of Regulation G, First Merchants Corporation has provided reconciliations within this news release, as necessary, of the non-GAAP financial measure to the most directly comparable GAAP financial measure.

CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars In Thousands, Except Per Share Amounts)	December 31,
		2025				2024
ASSETS
Cash and due from banks	$	84,158			$	87,616
Interest-bearing deposits		196,300				298,891
Investment securities available for sale		1,407,102				1,386,475
Investment securities held to maturity, net of allowance for credit losses		1,971,539				2,074,220
Loans held for sale		20,079				18,663
Loans		13,791,707				12,854,359
Less: Allowance for credit losses - loans		(195,597	)			(192,757	)
Net loans		13,596,110				12,661,602
Premises and equipment		121,058				129,743
Federal Home Loan Bank stock		47,245				41,690
Interest receivable		93,374				91,829
Goodwill		712,002				712,002
Other intangibles		13,800				19,828
Cash surrender value of life insurance		308,438				304,906
Other real estate owned		658				4,948
Tax asset, deferred and receivable		78,664				92,387
Other assets		374,574				387,169
TOTAL ASSETS	$	19,025,101			$	18,311,969
LIABILITIES
Deposits:
Noninterest-bearing	$	2,137,262			$	2,325,579
Interest-bearing		13,157,593				12,196,047
Total Deposits		15,294,855				14,521,626
Borrowings:
Federal funds purchased		40,000				99,226
Securities sold under repurchase agreements		103,755				142,876
Federal Home Loan Bank advances		798,549				822,554
Subordinated debentures and other borrowings		57,630				93,529
Total Borrowings		999,934				1,158,185
Interest payable		18,235				16,102
Other liabilities		245,410				311,073
Total Liabilities		16,558,434				16,006,986
STOCKHOLDERS' EQUITY
Preferred Stock, $1,000 par value, $1,000 liquidation value:
Authorized -- 600 cumulative shares
Issued and outstanding - 125 cumulative shares		125				125
Preferred Stock, Series A, no par value, $2,500 liquidation preference:
Authorized -- 10,000 non-cumulative perpetual shares
Issued and outstanding - 10,000 non-cumulative perpetual shares		25,000				25,000
Common Stock, $0.125 stated value:
Authorized -- 100,000,000 shares
Issued and outstanding - 56,951,939 and 57,974,535 shares		7,119				7,247
Additional paid-in capital		1,150,816				1,188,768
Retained earnings		1,413,742				1,272,528
Accumulated other comprehensive loss		(130,135	)			(188,685	)
Total Stockholders' Equity		2,466,667				2,304,983
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	19,025,101			$	18,311,969

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)	Three Months Ended							Twelve Months Ended
(Dollars In Thousands, Except Per Share Amounts)	December 31,							December 31,
		2025			2024				2025				2024
INTEREST INCOME
Loans:
Taxable	$	203,120		$	197,536			$	786,427			$	803,652
Tax-exempt		10,905			9,020				43,415				34,262
Investment securities:
Taxable		7,736			9,024				32,662				36,086
Tax-exempt		12,459			12,754				49,952				53,487
Deposits with financial institutions		2,187			5,350				8,127				16,992
Federal Home Loan Bank stock		1,037			958				4,209				3,527
Total Interest Income		237,444			234,642				924,792				948,006
INTEREST EXPENSE
Deposits		88,670			89,835				344,279				386,127
Federal funds purchased		218			26				2,219				481
Securities sold under repurchase agreements		405			680				2,464				3,057
Federal Home Loan Bank advances		8,047			8,171				35,763				29,886
Subordinated debentures and other borrowings		1,040			1,560				4,054				7,341
Total Interest Expense		98,380			100,272				388,779				426,892
NET INTEREST INCOME		139,064			134,370				536,013				521,114
Provision for credit losses		7,150			4,200				21,250				35,700
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		131,914			130,170				514,763				485,414
NONINTEREST INCOME
Service charges on deposit accounts		8,704			8,124				34,263				32,606
Fiduciary and wealth management fees		9,175			8,665				35,492				34,215
Card payment fees		5,325			4,957				19,790				19,317
Net gains and fees on sales of loans		5,421			5,681				21,275				20,840
Derivative hedge fees		1,053			1,594				3,385				3,082
Other customer fees		315			316				1,545				1,547
Earnings on bank-owned life insurance		1,854			2,188				7,613				8,464
Net realized losses on sales of available for sale securities		—			(11,592	)			(8	)			(20,757	)
Gain on branch sale		—			19,983				—				19,983
Other income		1,259			2,826				3,579				6,283
Total Noninterest Income		33,106			42,742				126,934				125,580
NONINTEREST EXPENSE
Salaries and employee benefits		58,254			55,437				225,080				221,167
Net occupancy		7,283			7,335				28,401				28,387
Equipment		7,681			7,028				28,614				26,802
Marketing		2,324			2,582				7,794				7,389
Outside data processing fees		7,509			6,029				27,488				27,140
Printing and office supplies		450			377				1,380				1,462
Intangible asset amortization		1,498			1,771				6,028				7,271
FDIC assessments		2,684			3,744				13,410				15,029
Other real estate owned and foreclosure expenses		775			227				1,525				2,076
Professional and other outside services		3,774			3,777				14,494				14,586
Other expenses		7,290			7,982				28,369				27,957
Total Noninterest Expense		99,522			96,289				382,583				379,266
Income Before Income Taxes		65,498			76,623				259,114				231,728
Income tax expense		8,433			12,274				33,113				30,326
NET INCOME		57,065			64,349				226,001				201,402
Preferred stock dividends		469			469				1,875				1,875
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	56,596		$	63,880			$	224,126			$	199,527
PER SHARE DATA:
Basic Net Income Available to Common Stockholders	$	0.99		$	1.10			$	3.90			$	3.42
Diluted Net Income Available to Common Stockholders	$	0.99		$	1.10			$	3.88			$	3.41
Cash Dividends Paid to Common Stockholders	$	0.36		$	0.35			$	1.43			$	1.39
Tangible Common Book Value Per Share	$	30.18		$	26.78			$	30.18			$	26.78
Average Diluted Common Shares Outstanding (in thousands)		57,442			58,247				57,726				58,533

FINANCIAL HIGHLIGHTS
(Dollars In Thousands)	Three Months Ended								Twelve Months Ended
	December 31,								December 31,
		2025				2024				2025				2024
NET CHARGE-OFFS	$	6,021			$	771			$	18,410			$	49,377
AVERAGE BALANCES:
Total Assets	$	19,039,989			$	18,478,303			$	18,633,952			$	18,400,495
Total Loans		13,717,822				12,757,676				13,320,678				12,634,324
Total Earning Assets		17,648,233				17,089,198				17,264,588				17,054,267
Total Deposits		15,294,518				14,788,294				14,816,114				14,816,564
Total Stockholders' Equity		2,452,005				2,312,270				2,375,500				2,252,491
FINANCIAL RATIOS:
Return on Average Assets		1.20	%			1.39	%			1.21	%			1.09	%
Return on Average Stockholders' Equity		9.23				11.05				9.43				8.86
Return on Tangible Common Stockholders' Equity		13.57				16.75				14.08				13.71
Average Earning Assets to Average Assets		92.69				92.48				92.65				92.68
Allowance for Credit Losses - Loans as % of Total Loans		1.42				1.50				1.42				1.50
Net Charge-offs as % of Average Loans (Annualized)		0.18				0.02				0.14				0.39
Average Stockholders' Equity to Average Assets		12.88				12.51				12.75				12.24
Fully Taxable Equivalent (FTE) Yield on Average Earning Assets		5.52				5.63				5.50				5.69
Interest Expense/Average Earning Assets		2.23				2.35				2.25				2.50
Net Interest Margin FTE		3.29				3.28				3.25				3.19
Efficiency Ratio		54.52				48.48				54.54				53.55

ASSET QUALITY
(Dollars In Thousands)	December 31,				September 30,				June 30,				March 31,				December 31,
		2025				2025				2025				2025				2024
Nonaccrual Loans	$	71,773			$	65,740			$	67,358			$	81,922			$	73,773
Other Real Estate Owned and Repossessions		658				1,270				177				4,966				4,948
Nonperforming Assets (NPA)		72,431				67,010				67,535				86,888				78,721
90+ Days Delinquent		2,042				1,925				4,443				4,280				5,902
NPAs & 90+ Days Delinquent	$	74,473			$	68,935			$	71,978			$	91,168			$	84,623
Allowance for Credit Losses - Loans	$	195,597			$	194,468			$	195,316			$	192,031			$	192,757
Quarterly Net Charge-offs		6,021				5,148				2,315				4,926				771
NPAs / Actual Assets %		0.38	%			0.36	%			0.36	%			0.47	%			0.43	%
NPAs & 90 Day / Actual Assets %		0.39	%			0.37	%			0.39	%			0.49	%			0.46	%
NPAs / Actual Loans and OREO %		0.52	%			0.49	%			0.51	%			0.67	%			0.61	%
Allowance for Credit Losses - Loans / Actual Loans (%)		1.42	%			1.43	%			1.47	%			1.47	%			1.50	%
Quarterly Net Charge-offs as % of Average Loans (Annualized)		0.18	%			0.15	%			0.07	%			0.15	%			0.02	%

CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars In Thousands, Except Per Share Amounts)	December 31,				September 30,				June 30,				March 31,				December 31,
		2025				2025				2025				2025				2024
ASSETS
Cash and due from banks	$	84,158			$	88,079			$	81,567			$	86,113			$	87,616
Interest-bearing deposits		196,300				168,706				223,343				331,534				298,891
Investment securities available for sale		1,407,102				1,386,903				1,358,130				1,378,489				1,386,475
Investment securities held to maturity, net of allowance for credit losses		1,971,539				1,995,488				2,022,826				2,048,632				2,074,220
Loans held for sale		20,079				23,190				28,783				23,004				18,663
Loans		13,791,707				13,591,174				13,296,759				13,004,905				12,854,359
Less: Allowance for credit losses - loans		(195,597	)			(194,468	)			(195,316	)			(192,031	)			(192,757	)
Net loans		13,596,110				13,396,706				13,101,443				12,812,874				12,661,602
Premises and equipment		121,058				121,771				122,808				128,749				129,743
Federal Home Loan Bank stock		47,245				47,264				47,290				45,006				41,690
Interest receivable		93,374				89,102				93,258				88,352				91,829
Goodwill		712,002				712,002				712,002				712,002				712,002
Other intangibles		13,800				15,298				16,797				18,302				19,828
Cash surrender value of life insurance		308,438				306,583				305,695				304,918				304,906
Other real estate owned		658				1,270				177				4,966				4,948
Tax asset, deferred and receivable		78,664				89,758				97,749				87,665				92,387
Other assets		374,574				369,509				380,909				369,181				387,169
TOTAL ASSETS	$	19,025,101			$	18,811,629			$	18,592,777			$	18,439,787			$	18,311,969
LIABILITIES
Deposits:
Noninterest-bearing	$	2,137,262			$	2,100,570			$	2,197,416			$	2,185,057			$	2,325,579
Interest-bearing		13,157,593				12,769,409				12,600,162				12,276,921				12,196,047
Total Deposits		15,294,855				14,869,979				14,797,578				14,461,978				14,521,626
Borrowings:
Federal funds purchased		40,000				199,370				85,000				185,000				99,226
Securities sold under repurchase agreements		103,755				122,226				114,758				122,947				142,876
Federal Home Loan Bank advances		798,549				798,626				898,702				972,478				822,554
Subordinated debentures and other borrowings		57,630				57,632				62,617				62,619				93,529
Total Borrowings		999,934				1,177,854				1,161,077				1,343,044				1,158,185
Interest payable		18,235				18,240				16,174				13,304				16,102
Other liabilities		245,410				333,154				269,996				289,247				311,073
Total Liabilities		16,558,434				16,399,227				16,244,825				16,107,573				16,006,986
STOCKHOLDERS' EQUITY
Preferred Stock, $1,000 par value, $1,000 liquidation value:
Authorized -- 600 cumulative shares
Issued and outstanding - 125 cumulative shares		125				125				125				125				125
Preferred Stock, Series A, no par value, $2,500 liquidation preference:
Authorized -- 10,000 non-cumulative perpetual shares
Issued and outstanding - 10,000 non-cumulative perpetual shares		25,000				25,000				25,000				25,000				25,000
Common Stock, $0.125 stated value:
Authorized -- 100,000,000 shares
Issued and outstanding		7,119				7,149				7,159				7,226				7,247
Additional paid-in capital		1,150,816				1,158,026				1,163,170				1,183,263				1,188,768
Retained earnings		1,413,742				1,377,966				1,342,473				1,306,911				1,272,528
Accumulated other comprehensive loss		(130,135	)			(155,864	)			(189,975	)			(190,311	)			(188,685	)
Total Stockholders' Equity		2,466,667				2,412,402				2,347,952				2,332,214				2,304,983
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	19,025,101			$	18,811,629			$	18,592,777			$	18,439,787			$	18,311,969

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollars In Thousands, Except Per Share Amounts)	December 31,				September 30,				June 30,				March 31,				December 31,
		2025				2025				2025				2025				2024
INTEREST INCOME
Loans:
Taxable	$	203,120			$	200,406			$	195,173			$	187,728			$	197,536
Tax-exempt		10,905				11,173				10,805				10,532				9,020
Investment securities:
Taxable		7,736				8,288				8,266				8,372				9,024
Tax-exempt		12,459				12,460				12,516				12,517				12,754
Deposits with financial institutions		2,187				1,676				1,892				2,372				5,350
Federal Home Loan Bank stock		1,037				1,092				1,083				997				958
Total Interest Income		237,444				235,095				229,735				222,518				234,642
INTEREST EXPENSE
Deposits		88,670				90,821				84,241				80,547				89,835
Federal funds purchased		218				224				965				812				26
Securities sold under repurchase agreements		405				654				663				742				680
Federal Home Loan Bank advances		8,047				8,638				9,714				9,364				8,171
Subordinated debentures and other borrowings		1,040				1,093				1,138				783				1,560
Total Interest Expense		98,380				101,430				96,721				92,248				100,272
NET INTEREST INCOME		139,064				133,665				133,014				130,270				134,370
Provision for credit losses		7,150				4,300				5,600				4,200				4,200
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		131,914				129,365				127,414				126,070				130,170
NONINTEREST INCOME
Service charges on deposit accounts		8,704				8,921				8,566				8,072				8,124
Fiduciary and wealth management fees		9,175				8,842				8,831				8,644				8,665
Card payment fees		5,325				5,007				4,932				4,526				4,957
Net gains and fees on sales of loans		5,421				4,983				5,849				5,022				5,681
Derivative hedge fees		1,053				1,097				831				404				1,594
Other customer fees		315				414				401				415				316
Earnings on bank-owned life insurance		1,854				1,667				1,913				2,179				2,188
Net realized losses on sales of available for sale securities		—				—				(1	)			(7	)			(11,592	)
Gain on branch sale		—				—				—				—				19,983
Other income (loss)		1,259				1,546				(19	)			793				2,826
Total Noninterest Income		33,106				32,477				31,303				30,048				42,742
NONINTEREST EXPENSE
Salaries and employee benefits		58,254				57,317				54,527				54,982				55,437
Net occupancy		7,283				7,057				6,845				7,216				7,335
Equipment		7,681				6,998				6,927				7,008				7,028
Marketing		2,324				2,120				1,997				1,353				2,582
Outside data processing fees		7,509				6,943				7,107				5,929				6,029
Printing and office supplies		450				311				272				347				377
Intangible asset amortization		1,498				1,499				1,505				1,526				1,771
FDIC assessments		2,684				3,526				3,552				3,648				3,744
Other real estate owned and foreclosure expenses		775				121				29				600				227
Professional and other outside services		3,774				3,718				3,741				3,261				3,777
Other expenses		7,290				6,951				7,096				7,032				7,982
Total Noninterest Expense		99,522				96,561				93,598				92,902				96,289
Income Before Income Taxes		65,498				65,281				65,119				63,216				76,623
Income tax expense		8,433				8,516				8,287				7,877				12,274
NET INCOME		57,065				56,765				56,832				55,339				64,349
Preferred stock dividends		469				468				469				469				469
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	56,596			$	56,297			$	56,363			$	54,870			$	63,880
PER SHARE DATA:
Basic Net Income Available to Common Stockholders	$	0.99			$	0.98			$	0.98			$	0.95			$	1.10
Diluted Net Income Available to Common Stockholders	$	0.99			$	0.98			$	0.98			$	0.94			$	1.10
Cash Dividends Paid to Common Stockholders	$	0.36			$	0.36			$	0.36			$	0.35			$	0.35
Tangible Common Book Value Per Share	$	30.18			$	29.08			$	27.90			$	27.34			$	26.78
Average Diluted Common Shares Outstanding (in thousands)		57,442				57,448				57,773				58,242				58,247
FINANCIAL RATIOS:
Return on Average Assets		1.20	%			1.22	%			1.23	%			1.21	%			1.39	%
Return on Average Stockholders' Equity		9.23				9.51				9.63				9.38				11.05
Return on Tangible Common Stockholders' Equity		13.57				14.21				14.49				14.12				16.75
Average Earning Assets to Average Assets		92.69				92.73				92.71				92.47				92.48
Allowance for Credit Losses - Loans as % of Total Loans		1.42				1.43				1.47				1.47				1.50
Net Charge-offs as % of Average Loans (Annualized)		0.18				0.15				0.07				0.15				0.02
Average Stockholders' Equity to Average Assets		12.88				12.71				12.64				12.76				12.51
Fully Taxable Equivalent (FTE) Yield on Average Earning Assets		5.52				5.58				5.50				5.39				5.63
Interest Expense/Average Earning Assets		2.23				2.34				2.25				2.17				2.35
Net Interest Margin FTE		3.29				3.24				3.25				3.22				3.28
Efficiency Ratio		54.52				55.09				53.99				54.54				48.48

LOANS
(Dollars In Thousands)	December 31,				September 30,				June 30,				March 31,				December 31,
		2025				2025				2025				2025				2024
Commercial and industrial loans	$	4,478,282			$	4,604,895			$	4,440,924			$	4,306,597			$	4,114,292
Agricultural land, production and other loans to farmers		283,125				275,817				265,172				243,864				256,312
Real estate loans:
Construction		804,775				789,021				836,033				793,175				792,144
Commercial real estate, non-owner occupied		2,338,666				2,304,889				2,171,092				2,177,869				2,274,016
Commercial real estate, owner occupied		1,237,100				1,232,117				1,226,797				1,214,739				1,157,944
Residential		2,420,310				2,412,783				2,397,094				2,389,852				2,374,729
Home equity		710,980				687,021				673,961				650,499				659,811
Individuals' loans for household and other personal expenditures		155,436				138,703				141,045				140,954				166,028
Public finance and other commercial loans		1,363,033				1,145,928				1,144,641				1,087,356				1,059,083
Loans		13,791,707				13,591,174				13,296,759				13,004,905				12,854,359
Allowance for credit losses - loans		(195,597	)			(194,468	)			(195,316	)			(192,031	)			(192,757	)
NET LOANS	$	13,596,110			$	13,396,706			$	13,101,443			$	12,812,874			$	12,661,602

DEPOSITS
(Dollars In Thousands)	December 31,				September 30,				June 30,				March 31,				December 31,
		2025				2025				2025				2025				2024
Demand deposits	$	7,770,473			$	7,645,698			$	7,798,695			$	7,786,554			$	7,980,061
Savings deposits		5,481,785				5,164,707				4,984,659				4,791,874				4,522,758
Certificates and other time deposits of $100,000 or less		603,690				627,828				617,857				625,203				692,068
Certificates and other time deposits of $100,000 or more		915,293				910,337				891,139				896,143				1,043,068
Brokered certificates of deposits(1)		523,614				521,409				505,228				362,204				283,671
TOTAL DEPOSITS	$	15,294,855			$	14,869,979			$	14,797,578			$	14,461,978			$	14,521,626

⁽¹⁾ Total brokered deposits of $1.5 billion, which includes brokered CD's of $523.6 million at December 31, 2025.

CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars In Thousands)
	Three Months Ended
	December 31, 2025									December 31, 2024
	Average Balance			Interest Income / Expense			Average Rate			Average Balance			Interest Income / Expense			Average Rate
ASSETS
Interest-bearing deposits	$	313,018		$	2,187		2.79	%		$	522,868		$	5,350		4.09	%
Federal Home Loan Bank stock		47,251			1,037		8.78				41,703			958		9.19
Investment Securities:(1)
Taxable		1,535,025			7,736		2.02				1,677,554			9,024		2.15
Tax-exempt(2)		2,035,117			15,771		3.10				2,089,397			16,144		3.09
Total Investment Securities		3,570,142			23,507		2.63				3,766,951			25,168		2.67
Loans held for sale		32,272			494		6.12				36,219			550		6.07
Loans:(3)
Commercial		9,417,302			160,949		6.84				8,753,723			156,414		7.15
Real estate mortgage		2,236,769			26,019		4.65				2,177,351			24,401		4.48
HELOC and installment		870,199			15,658		7.20				841,537			16,171		7.69
Tax-exempt(2)		1,161,280			13,778		4.75				948,846			11,418		4.81
Total Loans		13,717,822			216,898		6.32				12,757,676			208,954		6.55
Total Earning Assets		17,648,233			243,629		5.52	%			17,089,198			240,430		5.63	%
Total Non-Earning Assets		1,391,756									1,389,105
TOTAL ASSETS	$	19,039,989								$	18,478,303
LIABILITIES
Interest-Bearing Deposits:
Interest-bearing deposits	$	5,652,753		$	34,573		2.45	%		$	5,564,228		$	37,049		2.66	%
Money market deposits		4,144,256			31,813		3.07				3,189,334			25,463		3.19
Savings deposits		1,261,173			2,399		0.76				1,362,705			3,102		0.91
Certificates and other time deposits		2,077,545			19,885		3.83				2,313,284			24,221		4.19
Total Interest-Bearing Deposits		13,135,727			88,670		2.70				12,429,551			89,835		2.89
Borrowings		973,364			9,710		3.99				1,049,677			10,437		3.98
Total Interest-Bearing Liabilities		14,109,091			98,380		2.79				13,479,228			100,272		2.98
Noninterest-bearing deposits		2,158,791									2,358,743
Other liabilities		320,102									328,062
Total Liabilities		16,587,984									16,166,033
STOCKHOLDERS' EQUITY		2,452,005									2,312,270
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	19,039,989								$	18,478,303
Net Interest Income (FTE)				$	145,249								$	140,158
Net Interest Spread (FTE)(4)							2.73	%								2.65	%
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets							5.52	%								5.63	%
Interest Expense / Average Earning Assets							2.23	%								2.35	%
Net Interest Margin (FTE)(5)							3.29	%								3.28	%
(1)Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
(2)Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2025 and 2024. These totals equal $6.2 million and $5.8 million for the three months ended December 31, 2025 and 2024, respectively.
(3)Non accruing loans have been included in the average balances.
(4)Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
(5)Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.

CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars In Thousands)
	Twelve Months Ended
	December 31, 2025									December 31, 2024
	Average Balance			Interest Income / Expense			Average Rate			Average Balance			Interest Income / Expense			Average Rate
ASSETS
Interest-bearing deposits	$	272,164		$	8,127		2.99	%		$	418,163		$	16,992		4.06	%
Federal Home Loan Bank stock		46,289			4,209		9.09				41,736			3,527		8.45
Investment Securities:(1)
Taxable		1,585,375			32,662		2.06				1,759,578			36,086		2.05
Tax-exempt(2)		2,040,082			63,230		3.10				2,200,466			67,705		3.08
Total Investment Securities		3,625,457			95,892		2.64				3,960,044			103,791		2.62
Loans held for sale		26,199			1,603		6.12				29,650			1,792		6.04
Loans:(3)
Commercial		9,091,847			621,298		6.83				8,687,638			641,393		7.38
Real estate mortgage		2,211,726			101,203		4.58				2,158,743			94,890		4.40
HELOC and installment		846,430			62,323		7.36				830,079			65,577		7.90
Tax-exempt(2)		1,144,476			54,857		4.79				928,214			43,370		4.67
Total Loans		13,320,678			841,284		6.32				12,634,324			847,022		6.70
Total Earning Assets		17,264,588			949,512		5.50	%			17,054,267			971,332		5.69	%
Total Non-Earning Assets		1,369,364									1,346,228
TOTAL ASSETS	$	18,633,952								$	18,400,495
LIABILITIES
Interest-Bearing deposits:
Interest-bearing deposits	$	5,580,592		$	141,945		2.54	%		$	5,506,492		$	157,984		2.87	%
Money market deposits		3,762,100			118,188		3.14				3,061,461			106,026		3.46
Savings deposits		1,278,138			9,962		0.78				1,463,707			14,587		1.00
Certificates and other time deposits		2,016,857			74,184		3.68				2,413,900			107,530		4.45
Total Interest-Bearing Deposits		12,637,687			344,279		2.72				12,445,560			386,127		3.10
Borrowings		1,138,760			44,500		3.91				1,005,017			40,765		4.06
Total Interest-Bearing Liabilities		13,776,447			388,779		2.82				13,450,577			426,892		3.17
Noninterest-bearing deposits		2,178,427									2,371,004
Other liabilities		303,578									326,423
Total Liabilities		16,258,452									16,148,004
STOCKHOLDERS' EQUITY		2,375,500									2,252,491
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	18,633,952								$	18,400,495
Net Interest Income (FTE)				$	560,733								$	544,440
Net Interest Spread (FTE)(4)							2.68	%								2.52	%
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets							5.50	%								5.69	%
Interest Expense / Average Earning Assets							2.25	%								2.50	%
Net Interest Margin (FTE)(5)							3.25	%								3.19	%
(1)Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
(2)Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2025 and 2024. These totals equal $24.7 million and $23.3 million for the years ended December 31, 2025 and 2024, respectively.
(3)Non accruing loans have been included in the average balances.
(4)Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
(5)Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.

ADJUSTED NET INCOME AND DILUTED EARNINGS PER COMMON SHARE - NON-GAAP
(Dollars In Thousands, Except Per Share Amounts)	Three Months Ended																			Twelve Months Ended
	December 31,				September 30,				June 30,			March 31,				December 31,				December 31,				December 31,
		2025				2025			2025				2025				2024				2025				2024
Net Income Available to Common Stockholders - GAAP	$	56,596			$	56,297			$	56,363		$	54,870			$	63,880			$	224,126			$	199,527
Adjustments:
Net realized losses on sales of available for sale securities		—				—				1			7				11,592				8				20,757
Gain on branch sale		—				—				—			—				(19,983	)			—				(19,983	)
Acquisition-related expenses		524				276				—			—				—				800				—
Non-core expenses(1)(2)(3)(4)		(743	)			633				—			—				762				(110	)			4,243
Tax on adjustments		53				(220	)			—			(2	)			1,851				(169	)			(1,229	)
Adjusted Net Income Available to Common Stockholders - Non-GAAP	$	56,430			$	56,986			$	56,364		$	54,875			$	58,102			$	224,655			$	203,315
Average Diluted Common Shares Outstanding (in thousands)		57,442				57,448				57,773			58,242				58,247				57,726				58,533
Diluted Earnings Per Common Share - GAAP	$	0.99			$	0.98			$	0.98		$	0.94			$	1.10			$	3.88			$	3.41
Adjustments:
Net realized losses on sales of available for sale securities		—				—				—			—				0.20				—				0.35
Gain on branch sale		—				—				—			—				(0.34	)			—				(0.34	)
Acquisition-related expenses		—				—				—			—				—				0.01				—
Non-core expenses(1)(2)(3)(4)		(0.01	)			0.01				—			—				0.01				—				0.07
Tax on adjustments		—				—				—			—				0.03				—				(0.02	)
Adjusted Diluted Earnings Per Common Share - Non-GAAP	$	0.98			$	0.99			$	0.98		$	0.94			$	1.00			$	3.89			$	3.47

⁽¹⁾ Non-core expenses in the Three Months Ended December 31, 2025 included a $0.7 million reduction in the FDIC special assessment
⁽²⁾ Non-core expenses in the Three Months Ended September 30, 2025 included $0.6 million of severance costs
⁽³⁾ Non-core expenses in the Three Months Ended December 31, 2024 included $0.8 million of costs directly related to the branch sale
⁽⁴⁾ Non-core expenses in the Twelve Months Ended December 31, 2024 included $2.4 million from duplicative online banking conversion costs, $1.1 million from the FDIC special assessment, and $0.8 million of costs directly related to the branch sale

NET INTEREST MARGIN (FTE) - NON-GAAP
(Dollars in Thousands)
	Three Months Ended																				Twelve Months Ended
	December 31,				September 30,				June 30,				March 31,				December 31,				December 31,				December 31,
		2025				2025				2025				2025				2024				2025				2024
Net Interest Income (GAAP)	$	139,064			$	133,665			$	133,014			$	130,270			$	134,370			$	536,013			$	521,114
Fully Taxable Equivalent ("FTE") Adjustment		6,185				6,209				6,199				6,127				5,788				24,720				23,326
Net Interest Income (FTE) (Non-GAAP)	$	145,249			$	139,874			$	139,213			$	136,397			$	140,158			$	560,733			$	544,440
Average Earning Assets (GAAP)	$	17,648,233			$	17,282,901			$	17,158,984			$	16,960,475			$	17,089,198			$	17,264,588			$	17,054,267
Net Interest Margin (GAAP)		3.15	%			3.09	%			3.10	%			3.07	%			3.15	%			3.10	%			3.06	%
FTE Adjustment		0.14	%			0.15	%			0.15	%			0.15	%			0.13	%			0.15	%			0.13	%
Net Interest Margin (FTE) (Non-GAAP)		3.29	%			3.24	%			3.25	%			3.22	%			3.28	%			3.25	%			3.19	%

RETURN ON TANGIBLE COMMON EQUITY - NON-GAAP
(Dollars In Thousands)	Three Months Ended																				Twelve Months Ended
	December 31,				September 30,				June 30,				March 31,				December 31,				December 31,				December 31,
		2025				2025				2025				2025				2024				2025				2024
Total Average Stockholders' Equity (GAAP)	$	2,452,005			$	2,367,971			$	2,340,010			$	2,340,874			$	2,312,270			$	2,375,500			$	2,252,491
Less: Average Preferred Stock		(25,125	)			(25,125	)			(25,125	)			(25,125	)			(25,125	)			(25,125	)			(25,125	)
Less: Average Intangible Assets, Net of Tax		(723,466	)			(724,619	)			(725,813	)			(726,917	)			(728,218	)			(725,193	)			(730,295	)
Average Tangible Common Equity, Net of Tax (Non-GAAP)	$	1,703,414			$	1,618,227			$	1,589,072			$	1,588,832			$	1,558,927			$	1,625,182			$	1,497,071
Net Income Available to Common Stockholders (GAAP)	$	56,596			$	56,297			$	56,363			$	54,870			$	63,880			$	224,126			$	199,527
Plus: Intangible Asset Amortization, Net of Tax		1,183				1,185				1,188				1,206				1,399				4,762				5,744
Tangible Net Income (Non-GAAP)	$	57,779			$	57,482			$	57,551			$	56,076			$	65,279			$	228,888			$	205,271
Return on Tangible Common Equity (Non-GAAP)		13.57	%			14.21	%			14.49	%			14.12	%			16.75	%			14.08	%			13.71	%

EFFICIENCY RATIO - NON-GAAP
(Dollars In Thousands)	Three Months Ended																				Twelve Months Ended
	December 31,				September 30,				June 30,				March 31,				December 31,				December 31,				December 31,
		2025				2025				2025				2025				2024				2025				2024
Noninterest Expense (GAAP)	$	99,522			$	96,561			$	93,598			$	92,902			$	96,289			$	382,583			$	379,266
Less: Intangible Asset Amortization		(1,498	)			(1,499	)			(1,505	)			(1,526	)			(1,771	)			(6,028	)			(7,271	)
Less: OREO and Foreclosure Expenses		(775	)			(121	)			(29	)			(600	)			(227	)			(1,525	)			(2,076	)
Adjusted Noninterest Expense (Non-GAAP)	$	97,249			$	94,941			$	92,064			$	90,776			$	94,291			$	375,030			$	369,919
Net Interest Income (GAAP)	$	139,064			$	133,665			$	133,014			$	130,270			$	134,370			$	536,013			$	521,114
Plus: Fully Taxable Equivalent Adjustment		6,185				6,209				6,199				6,127				5,788				24,720				23,326
Net Interest Income on a Fully Taxable Equivalent Basis (Non-GAAP)	$	145,249			$	139,874			$	139,213			$	136,397			$	140,158			$	560,733			$	544,440
Noninterest Income (GAAP)	$	33,106			$	32,477			$	31,303			$	30,048			$	42,742			$	126,934			$	125,580
Less: Investment Securities (Gains) Losses		—				—				1				7				11,592				8				20,757
Adjusted Noninterest Income (Non-GAAP)	$	33,106			$	32,477			$	31,304			$	30,055			$	54,334			$	126,942			$	146,337
Adjusted Revenue (Non-GAAP)	$	178,355			$	172,351			$	170,517			$	166,452			$	194,492			$	687,675			$	690,777
Efficiency Ratio (Non-GAAP)		54.52	%			55.09	%			53.99	%			54.54	%			48.48	%			54.54	%			53.55	%
Adjusted Noninterest Expense (Non-GAAP)	$	97,249			$	94,941			$	92,064			$	90,776			$	94,291			$	375,030			$	369,919
Less: Acquisition-related Expenses		(524	)			(276	)			—				—				—				(800	)			—
Less: Non-core Expenses(1)(2)(3)(4)		743				(633	)			—				—				(762	)			110				(4,243	)
Adjusted Noninterest Expense Excluding Non-core Expenses (Non-GAAP)	$	97,468			$	94,032			$	92,064			$	90,776			$	93,529			$	374,340			$	365,676
Adjusted Revenue (Non-GAAP)	$	178,355			$	172,351			$	170,517			$	166,452			$	194,492			$	687,675			$	690,777
Less: Gain on Branch Sale		—				—				—				—				(19,983	)			—				(19,983	)
Adjusted Revenue Excluding Gain on Branch Sale (Non-GAAP)	$	178,355			$	172,351			$	170,517			$	166,452			$	174,509			$	687,675			$	670,794
Adjusted Efficiency Ratio (Non-GAAP)		54.65	%			54.56	%			53.99	%			54.54	%			53.60	%			54.44	%			54.51	%

⁽¹⁾ Non-core expenses in the Three Months Ended December 31, 2025 included a $0.7 million reduction in the FDIC special assessment
⁽²⁾ Non-core expenses in the Three Months Ended September 30, 2025 included $0.6 million of severance costs
⁽³⁾ Non-core expenses in the Three Months Ended December 31, 2024 included $0.8 million of costs directly related to the branch sale
⁽⁴⁾ Non-core expenses in the Twelve Months Ended December 31, 2024 included $2.4 million from duplicative online banking conversion costs, $1.1 million from the FDIC special assessment, and $0.8 million of costs directly related to the branch sale

For more information, contact:
Nicole M. Weaver, First Vice President and Director of Corporate Administration
765-521-7619
http://www.firstmerchants.com

FAQ

What were First Merchants (FRME) full‑year 2025 net income and EPS?

First Merchants reported $224.1M net income available to common stockholders and $3.88 diluted EPS for 2025.

What did FRME report for Q4 2025 diluted earnings per share?

Q4 2025 diluted EPS was $0.99 per common share.

How much did First Merchants' loans and deposits change in the last 12 months?

Loans increased by $938.8M (7.3% YoY) and deposits rose by $773.2M (5.3% YoY).

When will First Merchants close the acquisition of First Savings and how large is the deal?

Regulatory approval was received and the acquisition is expected to close on Feb 1, 2026, adding approximately $2.4B in assets.

How much share repurchase did FRME complete in 2025?

First Merchants repurchased 1,211,224 shares totaling $46.9M year‑to‑date.

What are First Merchants' key capital ratios reported for Q4 2025?

Key ratios: Common Equity Tier 1 = 11.70%, Total risk‑based capital = 13.41%, Tangible common equity = 9.38%.