First Merchants Reports Strong Q2 2025 Earnings

First Merchants ( (FRME) ) has released its Q2 earnings. Here is a breakdown of the information First Merchants presented to its investors.

First Merchants Corporation, headquartered in Muncie, Indiana, operates as a financial holding company with a full-service bank charter, offering a range of banking services including commercial, consumer, and wealth management solutions.

First Merchants Corporation reported a strong performance in the second quarter of 2025, with net income available to common stockholders reaching $56.4 million, translating to a diluted earnings per share of $0.98. This marks a significant increase from the $39.5 million and $0.68 per share reported in the same quarter of the previous year.

Key financial highlights include a robust capital position with a Common Equity Tier 1 Capital Ratio of 11.35%, and an impressive loan growth of $297.6 million, or 9.1% annualized on a linked quarter basis. The company also saw total deposits increase by $335.6 million, or 9.3% annualized. Additionally, First Merchants repurchased 582,486 shares totaling $22.1 million during the quarter, contributing to a year-to-date repurchase of 818,480 shares totaling $31.7 million.

The company’s efficiency ratio improved to 53.99% for the quarter, reflecting disciplined expense management. Net interest income increased by $2.7 million compared to the previous quarter, driven by higher yields on earning assets. Noninterest income also showed growth, primarily due to gains on the sales of loans and increased treasury management fees.

Looking ahead, First Merchants’ management remains confident in their ability to deliver long-term value for shareholders, supported by their strong balance sheet, continued loan and deposit growth, and a robust capital position. The company is committed to navigating the dynamic economic environment with confidence and clarity.