First Merchants Corporation · NASDAQ:FRME
First Merchants — Q3 2025 Earnings Presentation
36 slides from First Merchants's earnings presentation, Oct 23, 2025
Slide 1: Investor Update Third Quarter 2025
Investor Update Third 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 27 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 9/30/2025 $18.8 Billion YTD ROAA: 1.22% Total Assets YTD Return on TCE 14.27% $13.6 Billion TCE/TA: 9.18% Total Loans Market Cap $2.2B $14.9 Billion Divid
Slide 5: Highlights Third Quarter
Highlights Third Quarter Net Income & EPS1 ROA (Annualized) ROE & ROTCE (Annualized) $56.3 Million 1.22% ROA 9.51% ROE $0.98 Per Share 1.51% PTPP ROA2 14.21% ROTCE2 ▪ EPS of $0.991,2 when adjusted for non-core items compared to core EPS of $0.951,2 in 3Q24; reported EPS of $0.98 compared to $0.84 in
Slide 6: Highlights Year to Date
Highlights Year to Date Net Income & EPS1 ROA (Annualized) ROE & ROTCE (Annualized) $167.5 Million 1.22% ROA 9.51% ROE $2.90 Per Share 1.50% PTPP ROA2 14.27% ROTCE2 ▪ 17.3% EPS growth over prior year ▪ Adjusted EPS of $2.911,2 compared to adjusted EPS of $2.481,2 in prior year; reported EPS of $2.90
Slide 7: Business Strategy
Business Strategy Commercial Banking Consumer Banking Full Spectrum of Debt Capital and Treasury Service Offerings Full Spectrum of Consumer Deposit and Lending Offerings Located in Prime Growth Markets Supported by: Talented, Customer Service Oriented Banking Center Small Business & SBA Asset Based
Slide 8: Business Highlights - Loans
Business Highlights - Loans Michigan Loan Growth Summary1,2 Monroe MSA Rank: 1 Detroit MSA Rank: 11 3Q25 Balance ($B) Growth Deposits: $2.5B Loans: $3.0B Commercial 10.3 10.6% Northwest Indiana Lake County Rank: 5 Consumer 3.3 2.6% Lafayette MSA Rank: 2 Total Loan Growth QTD 8.7% Deposits: $3.0B Tot
Slide 9: Business Highlights - Deposits
Business Highlights - Deposits Michigan Monroe MSA Rank: 1 Deposit Growth Summary1,2 Detroit MSA Rank: 11 Deposits: $2.5B 3Q25 Balance ($B) Growth Northwest Indiana Loans: $3.0B Lake County Rank: 5 Commercial 7.4 -1.2% Lafayette MSA Rank: 2 Consumer 5.8 6.7% Deposits: $3.0B Total Deposit Growth QTD
Slide 10: Third Quarter Financial Results
Third Quarter Financial Results ($M except per share data) For the Three Months Ended, Variance % Variance Linked Linked QTR- 9/30/24 12/31/24 3/31/25 6/30/25 9/30/25 Quarter Annualized Balance Sheet & Asset Quality 3Q25 Highlights 1. Total Assets $18,347.6 $18,312.0 $18,439.8 $18,592.8 $18,811.6 $2
Slide 11: Year to Date Financial Results
Year to Date Financial Results ($M except per share data) For the Nine Months Ended September 30, Variance % Variance 2023 2024 2025 YOY YOY Balance Sheet & Asset Quality Year to Date Highlights 1. Total Assets $17,996.6 $18,347.6 $18,811.6 $464.1 2.5% 2. Total Loans 12,302.4 12,687.5 13,614.4 926.9
Slide 12: Investment Portfolio Highlights
Investment Portfolio Highlights 3Q25 Investment Portfolio Composition Yield on Investments (%) / Total Investments ($B) Corporate Obligations U.S. Agencies 2% 11% Collateralized Mortgage 2.63% 2.67% 2.63% 2.64% 2.67% Obligations 5% $3.4B $3.7 $3.5 $3.4 $3.4 $3.4 Municipal Mortgage- Total Bonds Backe
Slide 13: Loan Portfolio Highlights
Loan Portfolio Highlights 3Q25 Loan Composition Highlights Construction Land & Land Development 5.8% Agricultural Land & Commercial Real Estate Production 2.0% ▪ Portfolio composition is ~76% Commercial oriented Non-Owner Occupied Public Finance/Other 16.9% Commercial 8.5% ▪ Total loan yield of 6.40
Slide 14: Allowance for Credit Losses - Loans
Allowance for Credit Losses - Loans 3Q25 Allowance for Credit Losses - Loans Highlights ▪ $4.3 million Q3 provision ▪ The reserve for unfunded commitments totals $18.0 million and is recorded in Other Liabilities 1.48% 1.50% 1.47% 1.47% 1.43% ▪ The remaining fair value accretion on acquired loans is
Slide 15: Deposit Portfolio Highlights
Deposit Portfolio Highlights 3Q25 Deposit Composition Highlights Certificates & Time Brokered Certificates of Deposits 1 ▪ Strong core deposit base Deposits < $100k 4% • 90% core deposits2 4% Certificates & Time • 14% noninterest bearing Deposits > $100k 6% • 33% of total deposits yield 0 to 5 bps ▪
Slide 16: Net Interest Margin
Net Interest Margin 3Q24 4Q24 1Q25 2Q25 3Q25 1. Net Interest Income - FTE ($millions) $ 137.0 $ 140.2 $ 136.4 $ 139.2 $ 139.9 2. Fair Value Accretion $ 1.4 $ 1.4 $ 1.1 $ 1.0 $ 0.9 3. Adjusted Net Interest Income - FTE1 $ 135.6 $ 138.8 $ 135.3 $ 138.2 $ 139.0 4. Tax Equivalent Yield on Earning Assets
Slide 17: Noninterest Income Highlights
Noninterest Income Highlights 3Q25 Noninterest Income Detail ($M) Noninterest Income Trends Fee Income / Revenue Service Charges 23.4% $8.9 27% 18.9% 18.0% 18.4% Card Payment Fees 15.4% $5.0 16% Gain on Sale of Loans $32.5M Derivative Customer-Related Fees ($M) Hedge Fees $5.0 16% Total $1.1 $29.8 3
Slide 18: Noninterest Expense Highlights
Noninterest Expense Highlights 3Q25 Noninterest Expense Detail Noninterest Expense Trends ($M) Net Occupancy & Equipment Efficiency Ratio $14.1 15% 54.54% 53.99% 55.09% Outside Data Processing 53.76% 53.60%1 $7.0 7% 54.56%1 48.48% Professional & Other Outside Services $3.7 4% $96.6M Intangible Asset
Slide 19: Capital Ratios
Capital Ratios Tangible Common Equity Ratio Highlights 8.81% 8.90% 8.92% 9.18% ▪ Repurchased 939,271 shares totaling $36.5 million 8.76% year-to-date 9.57% ▪ 162,474 shares repurchased during the third 9.31% 9.31% quarter totaling $6.5 million 9.65% ▪ $30 million of sub debt redeemed in 1Q25 9.31% 9
Slide 20: Loan Portfolio
Loan Portfolio Loan Portfolio Trends ($M) 3Q25 Highlights ▪ Balanced Commercial loan growth of $268 3Q24 4Q24 1Q25 2Q25 3Q25 million 1. C&I - Regional Banking $ 3,201 $ 3,349 $ 3,482 $ 3,574 $ 3,694 ▪ Strong C&I loan growth of $169 million 2. C&I - Sponsor Finance 841 766 824 867 911 ▪ Conservative
Slide 21: Loan Portfolio Insights
Loan Portfolio Insights Commercial C&I C&I - Sponsor Finance ▪ $911.1 million in loans to 100 companies in a diversity of industries ▪ Senior Debt/Adj. EBITDA < 3.0X ~84% ▪ Total Debt/Adj. EBITDA < 4.0X ~76% ▪ FCCR > 1.50X ~63% ▪ ~4.3% Classified (as a % of portfolio) ▪ Excellent credit history with
Slide 22: Loan Portfolio Insights (continued)
Loan Portfolio Insights (continued) Commercial Real Estate (Non-Owner Occupied) ($M) Multi- Warehouse Total CRE Family Industrial / Storage Retail Office Other (NOO) Balance: $ 716.9 $ 412.5 $ 339.9 $ 318.4 $ 257.3 $ 259.9 $ 2,304.9 Commitment: $ 738.1 $ 427.2 $ 349.3 $ 321.7 $ 260.3 $ 309.7 $ 2,406
Slide 23: Asset Quality
Asset Quality Asset Quality Trends ($M) 3Q25 Highlights 3Q24 4Q24 1Q25 2Q25 3Q25 Asset Quality: 1. Non-Accrual Loans $ 59.1 $ 73.8 $ 81.9 $ 67.4 $ 65.7 ▪ Largest Non-Accruals: 2. Other Real Estate 5.2 4.9 5.0 0.2 1.3 • $12.9 million – IRE Multi-family Construction 3. 90PD Loans 14.1 5.9 4.3 4.4 1.9
Slide 24: Nonperforming Assets
Nonperforming Assets Nonperforming Assets Roll Forward ($M) 3Q25 Highlights 3Q24 4Q24 1Q25 2Q25 3Q25 Nonperforming Migration: 1. Beginning Balance NPAs + 90PD $ 68.4 $ 78.4 $ 84.6 $ 91.2 $ 72.0 ▪ Largest new non-accrual relationship $4.3 million Non-Accrual 2. Add: New Non-Accruals 13.2 42.9 19.6 21
Slide 25: Track Record of Shareholder Value
Track Record of Shareholder Value 10-Year Total Return (2014-2024) Diluted Earnings per Share CAGR 2014-2024: 7.5% $3.81 $3.81 $3.73 230.1% $3.22 $3.19 $3.41 $2.90 $2.74 $1.98 $2.12 $1.65 $1.72 200.3% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 YTD'25 Dividends per Share FRME KBW NASDAQ R
Slide 26: History of Organic and Whole Bank Acquisition Growth
History of Organic and Whole Bank Acquisition Growth Total Assets ($B) Growth Through Acquisition ✓ Experienced Acquirer ✓ Expanded in Current High-Growth Markets ✓ Added to Franchise with Stable Deposit Gathering $18.8 Markets $17.9 $18.3 $18.3 $15.5 $14.1 $12.5 $9.9 $9.4 $6.8 $7.2 $5.8 2014 2015 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
Non-GAAP ADJUSTED NET INCOME AND DILUTED EARNINGS PER COMMON SHARE 3Q24 4Q24 1Q25 2Q25 3Q25 9/30/23 YTD 9/30/24 YTD 9/30/25 YTD (Dollars and Shares Outstanding in Thousands, Except Per Share Amounts) Net Income Available to Common Stockholders - GAAP $ 48,719 $ 63,880 $ 54,870 $ 56,363 $ 56,297 $ 17
Slide 31: Non-GAAP
Non-GAAP PRE-TAX, PRE-PROVISION ("PTPP") EARNINGS, AS ADJUSTED 3Q24 4Q24 1Q25 2Q25 3Q25 9/30/23 YTD 9/30/24 YTD 9/30/25 YTD (Dollars in Thousands, Except Per Share Amounts) Net Interest Income (GAAP) $ 131,110 $ 134,370 $ 130,270 $ 133,014 $ 133,665 $ 415,337 $ 386,744 $ 396,949 Other Income (GAAP)
Slide 32: Non-GAAP
Non-GAAP NET INTEREST MARGIN ("NIM"), ADJUSTED 3Q24 4Q24 1Q25 2Q25 3Q25 9/30/23 YTD 9/30/24 YTD 9/30/25 YTD (Dollars in Thousands) Net Interest Income (GAAP) $ 131,110 $ 134,370 $ 130,270 $ 133,014 $ 133,665 $ 415,337 $ 386,744 $ 396,949 Fully Taxable Equivalent ("FTE") Adjustment 5,883 5,788 6,127
Slide 33: Non-GAAP
Non-GAAP EFFICIENCY RATIO (dollars in thousands): 3Q24 4Q24 1Q25 2Q25 3Q25 3Q23 YTD 3Q24 YTD 3Q25 YTD EFFICIENCY RATIO (dollars in thousands): Noninterest Expense (GAAP) $ 94,629 $ 96,289 $ 92,902 $ 93,598 $ 96,561 $ 280,167 282,977 283,061 Less: Intangible Asset Amortization (1,772) (1,771) (1,526)
Slide 34: Non-GAAP
Non-GAAP CAPITAL RATIOS (dollars in thousands): 3Q23 3Q24 4Q24 1Q25 2Q25 3Q25 Total Risk-Based Capital Ratio (dollars in thousands) Total Stockholders' Equity (GAAP) 2,092,644 2,302,373 2,304,983 2,332,214 2,347,952 2,412,402 Adjust for Accumulated Other Comprehensive Loss 1 307,270 151,825 188,685
Slide 35: Non-GAAP
Non-GAAP TANGIBLE COMMON EQUITY RATIO (dollars in thousands): 3Q23 3Q24 4Q24 1Q25 2Q25 3Q25 Tangible Common Equity Ratio (dollars in thousands) Total Stockholders' Equity (GAAP) $ 2,092,644 $ 2,302,373 $ 2,304,983 $ 2,332,214 $ 2,347,952 $ 2,412,402 Less: Preferred Stock (25,125) (25,125) (25,125) (
Slide 36: Non-GAAP
Non-GAAP RETURN ON TANGIBLE COMMON EQUITY (dollars in thousands): 2014 2015 2016 2017 2018 2019 2020 Return on Tangible Common Equity Total Average Stockholders' Equity (GAAP) $ 675,295 $ 753,724 $ 884,664 $ 1,110,524 $ 1,343,861 $ 1,569,615 $ 1,825,135 Less: Average Preferred Stock (125) (125) (125