First Merchants (FRME) Q2 2025 Earnings Transcript

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Thursday, July 24, 2025 astatine 9 a.m. ET

• Chief Executive Officer — Mark Hardwick

• President — Michael Stewart

• Chief Financial Officer — Michele Kawiecki

• Chief Credit Officer — John Martin

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Mark Hardwick: Good morning, and invited to First Merchants' Second Quarter 2025 Conference Call. Thanks for the instauration and for covering the forward-looking connection connected Page 2. We released our net yesterday aft the adjacent of the market, and you tin entree today's slides by pursuing the nexus connected the 3rd leafage of our net release. On Page 3 of our slides, you volition spot today's presenters and our bios, including President, Mike Stewart; Chief Credit Officer, John Martin; and Chief Financial Officer, Michele Kawiecki. On Slide 4, we person a representation of each 111 of our banking centers and immoderate 2nd 4th fiscal highlights with a fewer of the awards that we've received recently.

On Slide 5, our beardown equilibrium expanse and net results bespeak the benignant of show First Merchants shareholders person travel to expect. We delivered 9.1% annualized indebtedness maturation and $0.98 of net per share. Return connected assets totaled 1.23% and our ratio ratio was 54%, which is accordant with the high-performance institution we strive to be. Second 4th nett income was $56.4 million, an summation of $17 cardinal oregon 43% from a twelvemonth agone arsenic recognition prime returned to our mean steadfast levels. This betterment supported a importantly little proviso for recognition losses of $5.6 cardinal compared to $24.5 cardinal successful the 2nd 4th of 2024.

Year-to-date nett income totaled $111.2 million, an summation of $24.3 cardinal oregon 28% from the archetypal fractional of 2024, portion net per stock totaling $1.92 oregon $1.92 accrued $0.44 oregon 30% during the aforesaid period. We besides repurchased an further $22.1 cardinal worthy of shares this quarter. And year-to-date, we've repurchased $31.7 cardinal with an mean terms of $38.68. Our tangible communal equity of 8.92% is supra our people level and provides optimal superior flexibility fixed the minimal reliance connected hybrid equity that's disposable to america if needed. Now Mike Stewart volition sermon our enactment of concern momentum.

Michael Stewart: Thank you, Mark, and bully greeting to all. Our concern strategy summarized connected Slide 6 remains unchanged. We are a commercially focused enactment crossed each these concern segments and our superior markets of Indiana, Michigan and Ohio. So, let's crook to Page 7. And arsenic Mark stated earlier, this was a large 4th of indebtedness maturation crossed each those segments and crossed each the markets. It's precise pleasing to spot our Midwest economies proceed to expand. Our clients' businesses proceed to turn and spot our bankers continuing to triumph caller relationships. $262 cardinal of commercialized indebtedness maturation for the quarter, that's implicit 10% annualized. $430 cardinal of indebtedness maturation year-to-date, that's 9% annualized.