First Merchants’s Q4 Earnings Call: Our Top 5 Analyst Questions

First Merchants’ fourth quarter performance was driven by continued loan growth, disciplined deposit management, and margin resilience despite an 8.3% year-over-year decline in revenue. Management credited robust expansion in commercial and consumer segments, alongside stable pipelines, for maintaining momentum. CEO Mark Hardwick highlighted, “Loan growth remained robust with $197 million of linked quarter growth,” attributing the results to strong activity in capex financing, revolver utilization, and new business conversions. Expense control and improvements in net interest income also contributed to earnings stability.

First Merchants (FRME) Q4 CY2025 Highlights:

Revenue: $178.4 million vs analyst estimates of $173.1 million (8.3% year-on-year decline, 3.1% beat)
Adjusted EPS: $0.98 vs analyst estimates of $0.95 (3% beat)
Adjusted Operating Income: $70.44 million vs analyst estimates of $77.02 million (39.5% margin, 8.5% miss)
Market Capitalization: $2.26 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From First Merchants’s Q4 Earnings Call

Brendan Nosal (Hovde Group) asked about balance sheet optimization plans. CEO Mark Hardwick responded that any repositioning would be modest, primarily involving the sale of First Savings’ bond portfolio to ease liquidity pressures.
Daniel Tamayo (Raymond James) questioned expectations for loan growth by category. President Michael Stewart indicated balanced pipelines across segments and geographies, projecting mid-single-digit growth for the year, with further upside from the First Savings acquisition.
Damon Del Monte (KBW) probed on expense outlook and integration timing. CFO Michele Kawiecki guided to a 3%-5% increase in core expenses, with cost savings from First Savings integration expected in the second half of 2026.
Nathan Race (Piper Sandler) inquired about fee income growth potential. Kawiecki and Stewart confirmed a double-digit growth target, driven by wealth management, treasury services, and product additions from First Savings.
Terence McEvoy (Stephens Inc.) asked about multifamily construction loan quality and expected charge-offs. Chief Credit Officer John Martin described the portfolio as stable, expecting charge-offs to remain in the $6–$7 million range, consistent with recent quarters.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will monitor (1) the pace and success of First Savings Group integration and realization of targeted cost synergies, (2) loan growth consistency across commercial and consumer segments, and (3) the effectiveness of deposit repricing strategies amid a shifting rate environment. Progress on noninterest income expansion and asset quality metrics will also be important to track.

First Merchants currently trades at $39.78, up from $38.01 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

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First Merchants (NASDAQ:FRME) Misses Q4 CY2025 Sales Expectations

Stock Story

Regional banking company First Merchants missed Wall Street’s revenue expectations in Q4 CY2025, with sales falling 11.5% year on year to $172.2 million. Its non-GAAP profit of $0.98 per share was 3% above analysts’ consensus estimates.

First Merchants (FRME) Q4 CY2025 Highlights:

Net Interest Income: $139.1 million vs analyst estimates of $139.6 million (3.5% year-on-year growth, in line)
Net Interest Margin: 3.3% vs analyst estimates of 3.2% (8.6 basis point beat)
Revenue: $172.2 million vs analyst estimates of $173.1 million (11.5% year-on-year decline, 0.5% miss)
Efficiency Ratio: 54.5% vs analyst estimates of 55.2% (68.3 basis point beat)
Adjusted EPS: $0.98 vs analyst estimates of $0.95 (3% beat)
Tangible Book Value per Share: $30.18 vs analyst estimates of $29.71 (13% year-on-year growth, 1.6% beat)
Market Capitalization: $2.20 billion

Company Overview

Dating back to 1893 when it first opened its doors in Indiana, First Merchants is a Midwest regional bank providing commercial, consumer, and wealth management services through branches in Indiana, Ohio, Michigan, and Illinois.

Sales Growth

Net interest income and and fee-based revenue are the two pillars supporting bank earnings. The former captures profit from the gap between lending rates and deposit costs, while the latter encompasses charges for banking services, credit products, wealth management, and trading activities. Regrettably, First Merchants’s revenue grew at a tepid 6.5% compounded annual growth rate over the last five years. This fell short of our benchmark for the banking sector and is a poor baseline for our analysis.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. First Merchants’s recent performance shows its demand has slowed as its revenue was flat over the last two years.

First Merchants Year-On-Year Revenue Growth

Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, First Merchants missed Wall Street’s estimates and reported a rather uninspiring 11.5% year-on-year revenue decline, generating $172.2 million of revenue.

Net interest income made up 78.2% of the company’s total revenue during the last five years, meaning lending operations are First Merchants’s largest source of revenue.

First Merchants Quarterly Net Interest Income as % of Revenue

Our experience and research show the market cares primarily about a bank’s net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source.

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Tangible Book Value Per Share (TBVPS)

Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability.

This explains why tangible book value per share (TBVPS) stands as the premier banking metric. TBVPS strips away questionable intangible assets, revealing concrete per-share net worth that investors can trust. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules.

First Merchants’s TBVPS grew at a mediocre 4.6% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 10% annually over the last two years from $24.96 to $30.18 per share.

First Merchants Quarterly Tangible Book Value per Share

Over the next 12 months, Consensus estimates call for First Merchants’s TBVPS to grow by 3.5% to $31.23, lousy growth rate.

Key Takeaways from First Merchants’s Q4 Results

It was encouraging to see First Merchants beat analysts’ tangible book value per share expectations this quarter. On the other hand, its revenue slightly missed and its EPS slightly exceeded Wall Street’s estimates. Overall, this was a softer quarter. The stock remained flat at $38.02 immediately after reporting.

So do we think First Merchants is an attractive buy at the current price? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).

Risk Warnings and Disclaimers

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First Merchants Corporation Announces Fourth Quarter 2025 Earnings Per Share

GlobeNewswire

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		InterestIncome /Expense		AverageRate		Average Balance		InterestIncome /Expense		AverageRate
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		InterestIncome /Expense		AverageRate		Average Balance		InterestIncome /Expense		AverageRate
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

For more information, contact:

Nicole M. Weaver, First Vice President and Director of Corporate Administration

765-521-7619

http://www.firstmerchants.com

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First Merchants (FRME) Reports Q4: Everything You Need To Know Ahead Of Earnings

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Dime Community Bancshares Inc.

Regional banking company First Merchants will be announcing earnings results this Monday after market hours. Here’s what investors should know.

First Merchants met analysts’ revenue expectations last quarter, reporting revenues of $172.4 million, flat year on year. It was a slower quarter for the company, with a significant miss of analysts’ net interest income estimates and a narrow beat of analysts’ EPS estimates.

Is First Merchants a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting First Merchants’s revenue to decline 11% year on year to $173.1 million, a reversal from the 18.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.95 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. First Merchants has missed Wall Street’s revenue estimates five times over the last two years.

Looking at First Merchants’s peers in the regional banks segment, some have already reported their Q4 results, giving us a hint as to what we can expect. ServisFirst Bancshares delivered year-on-year revenue growth of 20.7%, beating analysts’ expectations by 5%, and Dime Community Bancshares reported revenues up 24.5%, topping estimates by 5.2%. ServisFirst Bancshares traded up 14.6% following the results while Dime Community Bancshares was also up 12.5%.

Read our full analysis of ServisFirst Bancshares’s results here and Dime Community Bancshares’s results here.

Investors in the regional banks segment have had steady hands going into earnings, with share prices up 1.9% on average over the last month. First Merchants’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $45.60 (compared to the current share price of $38.09).

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Nucor, American Capital Agency, Crane set to report earnings Monday

Investing.com

Earnings season continues, below we highlight companies expected to report earnings the next trading day so you can prepare for the action. Leading the charge are several significant players across various sectors, with Nucor, American Capital Agency, Crane, Western Alliance BanCorp, and Brown & Brown standing out as the largest companies by market capitalization set to release their financial results on Monday.

Earnings Before the Open

• Bank of Hawaii Corp (BOH): EPS estimate of $1.26, revenue estimate of $184.83M

• Dynex Capital Inc (DX): EPS estimate of $0.3816, revenue estimate of $62.38M

• Hbt Financial Inc (HBT): EPS estimate of $0.638, revenue estimate of $61.02M

• WSFS Financial Corp (: EPS estimate of $1.23, revenue estimate of $267.36M

• Lakeland Financial (LKFN): EPS estimate of $1.06, revenue estimate of $69.45M

• Steel Dynamics (STLD): EPS estimate of $1.89, revenue estimate of $4.59B

• Bank of Marin Ban (BMRC): EPS estimate of $0.4967, revenue estimate of $33.1M

Earnings After the Close

• Firstsun Capital Bancorp (FSUN): EPS estimate of $0.8475, revenue estimate of $107.61M

• Triumph Bancorp (TFIN): EPS estimate of $0.296, revenue estimate of $110.71M

• First Bank (FRBA): EPS estimate of $0.49, revenue estimate of $37.42M

• RBB Bancorp (RBB): EPS estimate of $0.49, revenue estimate of $33.2M

• South Plains Financial Inc (SPFI): EPS estimate of $0.875, revenue estimate of $54.11M

• Northwest Bancsha (NWBI): EPS estimate of $0.3063, revenue estimate of $174.15M

• NBT Bancorp Inc (NBTB): EPS estimate of $0.9844, revenue estimate of $184.24M

• Five Star Bancorp (FSBC): EPS estimate of $0.762, revenue estimate of $42.58M

• Home Bancorp (HBCP): EPS estimate of $1.39, revenue estimate of $37.4M

• First Merchants Corp (FRME): EPS estimate of $0.9517, revenue estimate of $173.17M

• Sanmina-SCI Corp (SANM): EPS estimate of $1.64, revenue estimate of $2.12B

• Crane Comp (CR): EPS estimate of $1.53, revenue estimate of $624.82M

• Western Alliance BanCorp (WAL): EPS estimate of $2.39, revenue estimate of $913.4M

• Alexandria Real Estate Equities (ARE): EPS estimate of $0.2808, revenue estimate of $623.36M

• American Capital Agency (AGNC): EPS estimate of $0.3703, revenue estimate of $940.76M

• Nucor (NUE): EPS estimate of $1.97, revenue estimate of $7.93B

• Eagle Financial Services (EFSI): EPS estimate of $0.865, revenue estimate of $20.4M

• Agilysys (AGYS): EPS estimate of $0.4557, revenue estimate of $79.07M

• Wr Berkley Corp (WRB): EPS estimate of $1.13, revenue estimate of $3.19B

• Brown & Brown Inc (BRO): EPS estimate of $0.905, revenue estimate of $1.65B

• Graco Inc (GGG): EPS estimate of $0.7664, revenue estimate of $590.91M

Be sure to check back daily for updates and insights into the earnings season and real-time results at Investing.com’s Earnings Calendar and Headlines section. Do you want to trade the earnings of the biggest companies like a pro? Then get InvestingPro now and access over 1000 metrics that will give you a significant advantage in the shark tank that is Wall Street. Click here.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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Western Alliance Bancorporation, ServisFirst Bancshares, First Merchants, and Dime Community Bancshares Shares Are Soaring, What You Need To Know

Stock Story

-0.17%

Dime Community Bancshares, Inc. 9.000% Fixed-to-Floating Rate Subordinated Notes due 2034

-0.68%

Dime Community Bancshares, Inc. Fixed-Rate Non-Cumulative Perpetual Preferred Stock, Series A

-0.62%

What Happened?

A number of stocks jumped in the afternoon session after comments from a key Federal Reserve official boosted hopes for an interest rate cut. New York Fed President John Williams stated that he sees “room for a further adjustment” for interest rates in the near term. Following his speech, traders increased their bets on a rate cut, with the probability of a December reduction jumping from around 39% to over 70%, according to data from CME Group. The positive sentiment was also reflected in the bond market, where the yield on the 10-year Treasury, a benchmark for mortgage rates, eased following the comments.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

Regional Banks company Western Alliance Bancorporation jumped 5.1%. Is now the time to buy Western Alliance Bancorporation? Access our full analysis report here, it’s free for active Edge members.
Regional Banks company ServisFirst Bancshares jumped 5%. Is now the time to buy ServisFirst Bancshares? Access our full analysis report here, it’s free for active Edge members.
Regional Banks company First Merchants jumped 5%. Is now the time to buy First Merchants? Access our full analysis report here, it’s free for active Edge members.
Regional Banks company Dime Community Bancshares jumped 5.1%. Is now the time to buy Dime Community Bancshares? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Dime Community Bancshares (DCOM)

Dime Community Bancshares’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 29 days ago when the stock dropped 7.2% on the news that the company reported third-quarter earnings that missed Wall Street's profit expectations. The regional lender posted adjusted earnings per share of $0.61, which fell short of analyst estimates of $0.69. While revenue for the quarter came in ahead of expectations at $115.6 million, up 32% from the previous year, and net interest income also topped forecasts, investors appeared to be more concerned with the bottom-line miss. The negative reaction suggests that the market weighed the earnings shortfall more heavily than the strong top-line performance, leading to a sell-off in the shares.

Dime Community Bancshares is down 10.2% since the beginning of the year, and at $27.25 per share, it is trading 25.5% below its 52-week high of $36.59 from December 2024. Investors who bought $1,000 worth of Dime Community Bancshares’s shares 5 years ago would now be looking at an investment worth $1,223.

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Regional Banks Stocks Q3 Recap: Benchmarking First Merchants (NASDAQ:FRME)

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