$FRMEP

FIRST MERCHANTS CORP

CIK:0000712534|SEC Filings

CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Loans:
Taxable	$ 226,531	$ 195,173	$ 440,158	$ 382,901
Tax exempt	11,823	10,805	23,412	21,337
Investment securities:
Taxable	7,355	8,266	14,902	16,638
Tax exempt	12,458	12,516	25,055	25,033
Deposits with financial institutions	1,147	1,892	2,391	4,264
Federal Home Loan Bank stock	1,525	1,083	3,490	2,080
Total Interest Income	260,839	229,735	509,408	452,253
INTEREST EXPENSE
Deposits	86,254	84,241	170,347	164,788
Federal funds purchased	717	965	1,307	1,777
Securities sold under repurchase agreements	419	663	751	1,405
Federal Home Loan Bank advances	13,190	9,714	24,238	19,078
Subordinated debentures and other borrowings	1,318	1,138	2,521	1,921
Total Interest Expense	101,898	96,721	199,164	188,969
NET INTEREST INCOME	158,941	133,014	310,244	263,284
Provision for credit losses	33,000	5,600	37,900	9,800
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	125,941	127,414	272,344	253,484
NONINTEREST INCOME
Net gains and fees on sales of loans	7,742	5,849	14,253	10,871
Earnings on bank-owned life insurance	2,325	1,913	5,771	4,092
Net realized losses on sales of available for sale securities	0	(1)	0	(8)
Net loss on mortgage loans reclassified to held for sale	0	0	(29,755)	0
Other income (loss)	577	(19)	967	774
Total Noninterest Income	37,156	31,303	42,985	61,351
NONINTEREST EXPENSE
Salaries and employee benefits	65,774	54,527	135,217	109,509
Net occupancy	8,227	6,845	16,528	14,061
Equipment	8,603	6,927	16,421	13,935
Marketing	2,370	1,997	3,971	3,350
Outside data processing fees	8,045	7,107	15,235	13,036
Printing and office supplies	491	272	868	619
Intangible asset amortization	2,706	1,505	5,008	3,031
FDIC assessments	4,390	3,552	8,283	7,200
Other real estate owned and foreclosure expenses	1,052	29	2,152	629
Professional and other outside services	4,979	3,741	19,572	7,002
Other expenses	8,710	7,096	17,237	14,128
Total Noninterest Expense	115,347	93,598	240,492	186,500
Income Before Income Taxes	47,750	65,119	74,837	128,335
Income tax expense	3,770	8,287	2,701	16,164
NET INCOME	43,980	56,832	72,136	112,171
Preferred stock dividends	469	469	938	938
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$ 43,511	$ 56,363	$ 71,198	$ 111,233
Per Share Data:
Basic Net Income Available to Common Stockholders (in dollars per share)	$ 0.70	$ 0.98	$ 1.16	$ 1.93
Diluted Net Income Available to Common Stockholders (in dollars per share)	0.70	0.98	1.15	1.92
Cash Dividends Paid (in dollars per share)	$ 0.37	$ 0.36	$ 0.73	$ 0.71
Average Diluted Common Shares Outstanding (in shares)	62,573,736	57,772,580	61,795,402	58,005,385
Service charges on deposit accounts
NONINTEREST INCOME
Other income	$ 9,372	$ 8,566	$ 18,409	$ 16,638
Fiduciary and wealth management fees
NONINTEREST INCOME
Other income	9,638	8,831	19,406	17,475
Card payment fees
NONINTEREST INCOME
Other income	5,505	4,932	10,780	9,458
Derivative hedge fees
NONINTEREST INCOME
Other income	1,117	831	1,681	1,235
Other customer fees
NONINTEREST INCOME
Other income	$ 880	$ 401	$ 1,473	$ 816

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash Flows from Operating Activities:
Net income	$ 72,136	$ 112,171
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	37,900	9,800
Depreciation and amortization	18,259	15,711
Change in deferred taxes	(3,618)	(2,178)
Share-based compensation	3,534	3,162
Loans originated for sale	(368,576)	(237,250)
Proceeds from sales of loans held for sale	383,856	235,456
Net gains on sales of loans held for sale	(10,544)	(8,326)
Loss on mortgage loans reclassified to held for sale	29,755	0
Net losses on sales of securities available for sale	0	8
Increase in cash surrender value of life insurance	(4,368)	(3,150)
Gains on life insurance benefits	(1,403)	(942)
Change in income tax receivable	(11,280)	(3,648)
Change in interest receivable	2,449	(1,429)
Change in interest payable	(6,674)	72
Other adjustments	5,202	(4,082)
Net cash provided by operating activities	146,628	115,375
Cash Flows from Investing Activities:
Net change in interest-bearing deposits	(308,988)	75,548
Purchase of securities available for sale	(10,833)	(5,906)
Proceeds from sales of securities available for sale	251,341	0
Proceeds from maturities and redemptions of:
Securities available for sale	26,632	30,084
Securities held to maturity	62,218	49,687
Purchases of Federal Home Loan Bank stock	0	(5,643)
Redemptions of Federal Home Loan Bank stock	57	43
Redemptions of Federal Reserve Bank stock	1,863	0
Payment of capital calls to qualified affordable housing investments	(23,494)	(23,596)
Net change in loans	(215,809)	(457,029)
Proceeds from mortgage portfolio loan sale	271,069	0
Net cash and cash equivalents received in acquisition	29,922	0
Proceeds from the sale of other real estate owned	1,788	5,724
Proceeds from life insurance benefits	4,593	3,303
Other adjustments	(11,953)	(1,951)
Net cash provided (used) by investing activities	78,406	(329,736)
Net change in:
Demand and savings deposits	106,823	280,535
Certificates of deposit and other time deposits	(338,427)	(4,583)
Proceeds from borrowings	1,059,021	682,194
Repayment of borrowings	(966,647)	(679,302)
Cash dividends on preferred stock	(938)	(938)
Cash dividends on common stock	(46,046)	(41,288)
Stock issued under employee benefit plans	339	317
Stock issued under dividend reinvestment and stock purchase plans	1,172	1,140
Stock options exercised	465	237
Repurchase of common stock	(38,289)	(30,000)
Net cash provided (used) by financing activities	(222,527)	208,312
Net Change in Cash and Cash Equivalents	2,507	(6,049)
Cash and Cash Equivalents, January 1	84,158	87,616
Cash and Cash Equivalents, June 30	86,665	81,567
Additional cash flow information:
Interest paid	199,908	188,897
Income tax paid	3,282	13,062
Loans transferred to other real estate owned	2,317	643
Non-cash investing activities using trade date accounting	0	6,745
ROU assets obtained in exchange for new operating lease liabilities	12,119	388
Qualified affordable housing investments obtained in exchange for funding commitments	29,000	20,000
Reclassification of loans to held for sale	356,956	0
Reclassification of loans from held for sale to loans	47,139	0
Fair value of assets acquired	2,464,488	0
Cash paid in acquisition	(7)	0
Less: Common stock issued	243,214	0
Liabilities assumed	$ 2,221,267	$ 0

CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
ASSETS
Cash and due from banks	$ 86,665	$ 84,158
Interest-bearing deposits	529,432	196,300
Investment securities available for sale	1,384,392	1,407,102
Investment securities held to maturity, net of allowance for credit losses of $245 and $245 (fair value of $1,653,943 and $1,718,287)	1,907,684	1,971,539
Loans held for sale	77,880	20,079
Loans	15,530,737	13,791,707
Less: Allowance for credit losses - loans	(241,615)	(195,597)
Net loans	15,289,122	13,596,110
Premises and equipment	148,164	121,058
Federal Home Loan Bank stock	70,818	47,245
Interest receivable	101,927	93,374
Goodwill	788,186	712,002
Other intangibles	38,972	13,800
Cash surrender value of life insurance	373,242	308,438
Other real estate owned	1,562	658
Tax asset, deferred and receivable	113,975	78,664
Other assets	436,744	374,574
TOTAL ASSETS	21,348,765	19,025,101
Deposits:
Noninterest-bearing	3,831,836	2,137,262
Interest-bearing	12,921,545	13,157,593
Total Deposits	16,753,381	15,294,855
Borrowings:
Federal funds purchased	0	40,000
Securities sold under repurchase agreements	103,340	103,755
Federal Home Loan Bank advances	1,414,059	798,549
Subordinated debentures and other borrowings	86,350	57,630
Total Borrowings	1,603,749	999,934
Interest payable	17,491	18,235
Other liabilities	276,967	245,410
Total Liabilities	18,651,588	16,558,434
COMMITMENTS AND CONTINGENT LIABILITIES
STOCKHOLDERS' EQUITY
Common Stock, $0.125 stated value: Authorized - 100,000,000 shares Issued and outstanding - 62,205,528 and 56,951,939 shares	7,776	7,119
Additional paid-in capital	1,358,975	1,150,816
Retained earnings	1,438,894	1,413,742
Accumulated other comprehensive loss	(133,593)	(130,135)
Total Stockholders' Equity	2,697,177	2,466,667
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	21,348,765	19,025,101
Cumulative Preferred Stock
STOCKHOLDERS' EQUITY
Preferred stock value	125	125
Series A Preferred Stock
STOCKHOLDERS' EQUITY
Preferred stock value	$ 25,000	$ 25,000