Slide 1: Investor Update Fourth Quarter 2025
Investor Update Fourth Quarter 2025
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation 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
Slide 3: Executive Management Team
Executive Management Team Mark Hardwick FMB: Chief Executive Officer 28 Yrs Mark K. Hardwick currently serves as the Chief Executive Officer of First Merchants Corporation and First Merchants Bank. Mark joined First Merchants in November of 1997 as Corporate Controller and was promoted to Chief Fina
Slide 4: First Merchants Corporation (NASDAQ: FRME)
First Merchants Corporation (NASDAQ: FRME) Largest financial services holding company headquartered in Central Indiana Financial Highlights as of 12/31/2025 $19.0 Billion YTD ROAA: 1.21% Total Assets YTD Return on TCE 14.08% $13.8 Billion TCE/TA: 9.38% Total Loans Market Cap $2.1B $15.3 Billion Divi
Slide 5: Highlights Fourth Quarter
Highlights Fourth Quarter Net Income & EPS1 ROA (Annualized) ROE & ROTCE (Annualized) $56.6 Million 1.20% ROA 9.23% ROE $0.99 Per Share 1.52% PTPP ROA2 13.57% ROTCE2 ▪ Reported EPS of $0.99 compared to $1.10 in 4Q24; EPS of $0.981,2 when adjusted for non-core items compared to core EPS of $1.001,2 i
Slide 6: Highlights Year to Date
Highlights Year to Date Net Income & EPS1 ROA (Annualized) ROE & ROTCE (Annualized) $224.1 Million 1.21% ROA 9.43% ROE $3.88 Per Share 1.51% PTPP ROA2 14.08% ROTCE2 ▪ 13.8% EPS growth over prior year ▪ Reported EPS of $3.88 compared to $3.41 in prior year; EPS of $3.89 1,2 when adjusted for non-core
Slide 7: Business Strategy
Business Strategy Commercial Banking Consumer Banking Strategy: We deliver flexible solutions through a high-touch, Strategy: We help personal banking clients and small business client-centric banking model supported by experienced owners prosper through a relationship-driven teams and accessible le
Slide 8: Business Highlights - Loans
Business Highlights - Loans Michigan Loan Growth Summary1,2 Monroe MSA Rank: 1 Detroit MSA Rank: 11 4Q25 Balance ($B) Growth Deposits: $2.5B Commercial 10.5 5.9% Northwest Indiana Loans: $3.0B Lake County Rank: 5 Consumer 3.3 5.5% Lafayette MSA Rank: 2 Total Loan Growth QTD 5.8% Deposits: $3.0B Tota
Slide 9: Business Highlights - Deposits
Business Highlights - Deposits Michigan Monroe MSA Rank: 1 Deposit Growth Summary1,2 Detroit MSA Rank: 11 Deposits: $2.5B 4Q25 Balance ($B) Growth Northwest Indiana Loans: $3.0B Commercial 7.4 1.2% Lake County Rank: 5 Lafayette MSA Rank: 2 Consumer 5.9 10.9% Deposits: $3.0B Total Deposit Growth QTD
Slide 10: Fourth Quarter Financial Results
Fourth Quarter Financial Results ($M except per share data) For the Three Months Ended, Variance % Variance Linked Linked QTR- 12/31/24 3/31/25 6/30/25 9/30/25 12/31/25 Quarter Annualized Balance Sheet & Asset Quality 4Q25 Highlights 1. Total Assets $18,312.0 $18,439.8 $18,592.8 $18,811.6 $19,025.1
Slide 11: Year to Date Financial Results
Year to Date Financial Results ($M except per share data) For the Year Ended December 31, Variance % Variance 2023 2024 2025 YOY YOY Balance Sheet & Asset Quality Year to Date Highlights 1. Total Assets $18,405.9 $18,312.0 $19,025.1 $713.1 3.9% 2. Total Loans 12,505.0 12,873.0 13,811.8 938.8 7.3% 3.
Slide 12: Investment Portfolio Highlights
Investment Portfolio Highlights 4Q25 Investment Portfolio Composition Yield on Investments (%) / Total Investments ($B) Corporate Obligations U.S. Agencies 2% 11% Collateralized Mortgage 2.67% 2.63% 2.64% 2.67% 2.63% Obligations 5% $3.4B Municipal $3.5 $3.4 $3.4 $3.4 $3.4 Mortgage- Backed Total Bond
Slide 13: Loan Portfolio Highlights
Loan Portfolio Highlights 4Q25 Loan Composition Highlights Construction Land & Land Development 5.8% Agricultural Land & Commercial Real Estate Production 2.1% ▪ Portfolio composition is ~76% Commercial oriented Non-Owner Occupied Public Finance/Other 17.0% Commercial 9.9% ▪ Total loan yield of 6.32
Slide 14: Allowance for Credit Losses - Loans
Allowance for Credit Losses - Loans 4Q25 Allowance for Credit Losses - Loans Highlights ▪ $7.2 million Q4 provision 1.50% ▪ The reserve for unfunded commitments totals $18.0 million 1.47% 1.47% 1.43% 1.42% and is recorded in Other Liabilities $192.8 $192.0 $195.3 $194.5 $195.6 ▪ The remaining fair v
Slide 15: Deposit Portfolio Highlights
Deposit Portfolio Highlights 4Q25 Deposit Composition Highlights Certificates & Time Brokered Certificates of Deposits 1 ▪ Strong core deposit base Deposits < $100k 4% 3% • 91% core deposits2 Certificates & Time • 14% noninterest bearing Deposits > $100k 6% • 33% of total deposits yield 0 to 5 bps ▪
Slide 16: Net Interest Margin
Net Interest Margin 4Q24 1Q25 2Q25 3Q25 4Q25 1. Net Interest Income - FTE ($millions) $ 140.2 $ 136.4 $ 139.2 $ 139.9 $ 145.3 2. Fair Value Accretion $ 1.4 $ 1.1 $ 1.0 $ 0.9 $ 1.0 1 3. Adjusted Net Interest Income - FTE $ 138.8 $ 135.3 $ 138.2 $ 139.0 $ 144.3 4. Tax Equivalent Yield on Earning Asset
Slide 17: Noninterest Income Highlights
Noninterest Income Highlights 4Q25 Noninterest Income Detail ($M) Noninterest Income Trends Fee Income / Revenue Service Charges 23.4% $8.7 26% 18.9% 18.0% 18.4% 18.6% Card Payment Fees $5.3 16% Gain on Sale of Loans $5.4 $33.1M Derivative Customer-Related Fees ($M) 16% Total Hedge Fees $1.1 3% $29.
Slide 18: Noninterest Expense Highlights
Noninterest Expense Highlights 4Q25 Noninterest Expense Detail Noninterest Expense Trends ($M) Efficiency Ratio Net Occupancy & Equipment 55.09% Outside Data Processing 54.54% 53.99% 54.65%1 $14.9 53.60%1 Salary & Benefits $7.5 15% $58.3 7% 59% 54.56%1 54.52% Professional & Other Outside Services $3
Slide 19: Capital Ratios
Capital Ratios Tangible Common Equity Ratio Highlights 9.38% 8.81% 8.90% 8.92% 9.18% ▪ Repurchased 1,211,224 shares totaling $46.9 million during the year 9.57% ▪ 271,953 shares repurchased during the fourth 9.31% 9.31% quarter totaling $10.4 million 9.65% ▪ $30 million of sub debt redeemed in 1Q25
Slide 20: Loan Portfolio
Loan Portfolio Loan Portfolio Trends ($M) Year End 2025 Highlights 4Q24 1Q25 2Q25 3Q25 4Q25 ▪ Total loan growth of $939 million or 7.3% 1. C&I - Regional Banking $ 3,349 $ 3,482 $ 3,574 $ 3,694 $ 3,837 • Commercial Loans grew $852 million or 8.8% 2. C&I - Sponsor Finance 766 824 867 911 898 • Led by
Slide 21: Loan Portfolio Insights
Loan Portfolio Insights Commercial C&I C&I - Sponsor Finance ▪ $897.5 million in loans to 97 companies in a diversity of industries ▪ Senior Debt/Adj. EBITDA < 3.0X ~83% ▪ Total Debt/Adj. EBITDA < 4.0X ~75% ▪ FCCR > 1.50X ~70% ▪ ~4.4% Classified (as a % of portfolio) ▪ Excellent credit history with
Slide 22: Loan Portfolio Insights (continued)
Loan Portfolio Insights (continued) Commercial Real Estate (Non-Owner Occupied) ($M) Multi- Warehouse Total CRE Family Industrial / Storage Retail Office Other (NOO) Balance: $ 748.1 $ 431.7 $ 324.3 $ 305.4 $ 261.2 $ 268.0 $ 2,338.7 Commitment: $ 765.9 $ 443.4 $ 332.4 $ 309.5 $ 264.0 $ 292.4 $ 2,407
Slide 23: Asset Quality
Asset Quality Asset Quality Trends ($M) 4Q25 Highlights 4Q24 1Q25 2Q25 3Q25 4Q25 Asset Quality: 1. Non-Accrual Loans $ 73.8 $ 81.9 $ 67.4 $ 65.7 $ 71.8 ▪ Largest Non-Accruals: 2. Other Real Estate 4.9 5.0 0.2 1.3 0.7 • $12.9 million – IRE Multi-family Construction 3. 90PD Loans 5.9 4.3 4.4 1.9 2.0 o
Slide 24: Nonperforming Assets
Nonperforming Assets Nonperforming Assets Roll Forward ($M) 4Q25 Highlights 4Q24 1Q25 2Q25 3Q25 4Q25 Nonperforming Migration: 1. Beginning Balance NPAs + 90PD $ 78.4 $ 84.6 $ 91.2 $ 72.0 $ 68.9 ▪ New $9.6 million non-accrual IRE Multi-family Non-Accrual Construction relationship 2. Add: New Non-Accr
Slide 25: Track Record of Shareholder Value
Track Record of Shareholder Value Tangible Book Value per Share Diluted Earnings per Share $32.49 CAGR 2015-2025: 7.5% $30.02 CAGR 2015-2025: 8.5% $3.88 $27.98 $3.81 $3.81 $3.73 Adjusted CAGR1 8.5% $24.09 $25.42 $3.22 $3.19 $3.41 $22.64 $21.24 $2.74 $19.24 $15.83 $16.78 $2.12 $14.38 $1.98 $1.72 $14.
Slide 26: History of Organic and Whole Bank Acquisition Growth
History of Organic and Whole Bank Acquisition Growth Total Assets ($B) Growth Through Acquisition ✓ Experienced Acquirer ✓ Expanded in Current High-Growth Markets ✓ Added to Franchise with Stable Deposit Gathering Markets $19.0 $17.9 $18.3 $18.3 $15.5 $14.1 $12.5 $9.9 $9.4 $6.8 $7.2 2015 2016 2017 2
Slide 27: Vision for the Future
Vision for the Future Our Vision: To enhance the financial wellness of the diverse communities we serve. Our Mission: To be the most attentive, knowledgeable, and high-performing bank for our clients, teammates, and shareholders. Strategic ▪ Drive engagement through inclusivity, teamwork, performanc
Slide 28: Appendix
APPENDIX io First Merchants,
Slide 29: Expansion into Southern Indiana Bolsters Indiana State Presence
Expansion into Southern Indiana Bolsters Indiana State Presence Pro Forma Indiana Deposit Market Share FSFG Southern Indiana Deposit Market Share Deposits Mkt. Share Deposits Mkt. Share Rank Institution (ST) Branches ($000) (%) Rank Institution (ST) Branches ($000) (%) 1 JPMorgan Chase & Co. (NY) 11
Slide 30: Non-GAAP: Adjusted Net Income and Diluted EPS
Non-GAAP ADJUSTED NET INCOME AND DILUTED EARNINGS PER COMMON SHARE 4Q24 1Q25 2Q25 3Q25 4Q25 2023 2024 2025 (Dollars and Shares Outstanding in Thousands, Except Per Share Amounts) Net Income Available to Common Stockholders - GAAP $ 63,880 $ 54,870 $ 56,363 $ 56,297 $ 56,596 $ 221,911 $ 199,527 $ 224
Slide 31: Non-GAAP: Pre-Tax, Pre-Provision Earnings
Non-GAAP PRE-TAX, PRE-PROVISION ("PTPP") EARNINGS, AS ADJUSTED 4Q24 1Q25 2Q25 3Q25 4Q25 2023 2024 2025 (Dollars in Thousands, Except Per Share Amounts) Net Interest Income (GAAP) $ 134,370 $ 130,270 $ 133,014 $ 133,665 $ 139,064 $ 545,401 $ 521,114 $ 536,013 Other Income (GAAP) 42,742 30,047 31,303
Slide 32: Non-GAAP: Net Interest Margin
Non-GAAP NET INTEREST MARGIN ("NIM"), ADJUSTED 4Q24 1Q25 2Q25 3Q25 4Q25 2023 2024 2025 (Dollars in Thousands) Net Interest Income (GAAP) $ 134,370 $ 130,270 $ 133,014 $ 133,665 $ 139,064 $ 545,400 $ 521,114 $ 536,013 Fully Taxable Equivalent ("FTE") Adjustment 5,788 6,127 6,199 6,209 6,185 23,943 23
Slide 33: Non-GAAP: Efficiency Ratio
Non-GAAP EFFICIENCY RATIO (dollars in thousands): 4Q24 1Q25 2Q25 3Q25 4Q25 2023 2024 2025 EFFICIENCY RATIO (dollars in thousands): Noninterest Expense (GAAP) $ 96,289 $ 92,902 $ 93,598 $ 96,561 $ 99,522 $ 388,270 $ 379,266 $ 382,583 Less: Intangible Asset Amortization (1,771) (1,526) (1,505) (1,499)
Slide 34: Non-GAAP: Capital Ratios
Non-GAAP CAPITAL RATIOS (dollars in thousands): 4Q23 4Q24 1Q25 2Q25 3Q25 4Q25 Total Risk-Based Capital Ratio (dollars in thousands) Total Stockholders' Equity (GAAP) 2,247,713 2,304,983 2,332,214 2,347,952 2,412,402 2,466,667 Adjust for Accumulated Other Comprehensive Loss 1 175,970 188,685 190,311
Slide 35: Non-GAAP: Tangible Common Equity Ratio
Non-GAAP TANGIBLE COMMON EQUITY RATIO (dollars in thousands): 4Q23 4Q24 1Q25 2Q25 3Q25 4Q25 Tangible Common Equity Ratio (dollars in thousands) Total Stockholders' Equity (GAAP) $ 2,247,713 $ 2,304,983 $ 2,332,214 $ 2,347,952 $ 2,412,402 $ 2,466,667 Less: Preferred Stock (25,125) (25,125) (25,125) (
Slide 36: Non-GAAP: Return on Tangible Common Equity
Non-GAAP RETURN ON TANGIBLE COMMON EQUITY (dollars in thousands): 2015 2016 2017 2018 2019 2020 2021 2022 Return on Tangible Common Equity Total Average Stockholders' Equity (GAAP) $ 753,724 $ 884,664 $ 1,110,524 $ 1,343,861 $ 1,569,615 $ 1,825,135 $ 1,866,632 $ 1,972,445 Less: Average Preferred Sto