First Merchants Corp. (FRME)
NASDAQ:FRME
Want to see FRME full AI Analyst Report?
Earnings Data
Report Date
Jul 23, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
1.03Last Year’s EPS
0.98Same Quarter Last Year
Moderate Buy
Based on 3 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed constructive momentum: core revenue and margin trends improved, acquisition integration is progressing with less dilution than expected, deposit mix and NII rose, and asset quality is described as contained. Negative items were largely one-time or transitional (acquisition expenses, a mortgage MTM charge, and a few idiosyncratic charge-offs), and management articulated clear actions and timelines for liquidity redeployment and cost synergies. Balanced against manageable credit items and temporary mark losses, the positive operating and capital developments outweigh the lowlights.Company Guidance
Size and Scale Expansion
Total assets of $21.1 billion, loans of $15.3 billion and deposits of $16.5 billion following the February 1 First Savings acquisition; network now operates 127 banking centers.
Adjusted Earnings and Profitability
Adjusted EPS of $1.03, up from $0.94 a year ago (9.6% YoY growth); adjusted return metrics include an adjusted ROA of 1.25% and adjusted return on tangible common equity in excess of 14%.
Net Interest Income and Margin Improvement
Fully tax-equivalent net interest income of $157.7 million, up $12.4 million linked quarter and $21.3 million YoY; net interest margin improved to 3.35% (+6 bps QoQ) despite a calendar day count headwind of ~5 bps.
Deposit Cost Reduction and Mix Improvement
Rate paid on deposits declined 23 bps to 2.09% in Q1, producing a $4.6 million reduction in deposit interest expense; noninterest-bearing deposits rose to 23% from 16% last quarter following checking product redesign.
Revenue and Pre-Tax Earnings Growth
Total revenues showed meaningful growth in Q1: net interest income +$12.2 million and noninterest income +$2.5 million linked quarter, driving pre-tax pre-provision earnings up $6.3 million to $78.7 million.
Successful Acquisition Integration Progress
First Savings acquisition legally closed Feb 1; integration on track with lower-than-expected tangible book dilution (actual 2.4% vs. 4.8% estimate) and management now estimates a tangible book earn-back of ~2.4 years for the acquisition.
Strategic Balance Sheet Repositioning
Repositioned $357 million of mortgage loans to held for sale (weighted average coupon 3.46%) to create liquidity for immediate paydown of higher-cost deposits and redeployment into commercial loans targeted at 6%+ yields.
Capital Strength and Shareholder Returns
Common equity tier 1 ratio of 11.22%, tangible common equity at 9% (post-acquisition); repurchased >700k shares ($27.6 million YTD) and remain active in buybacks; preliminary Basel III proposal expected to benefit by ~50–80 bps.
Noninterest Income Momentum
Normalized noninterest income of $35.6 million with strength in customer-related fees, wealth management fees, and gains on sale of loans; management expects Q2 noninterest income to increase ~3–4% vs Q1.
Asset Quality Remains Contained
Management reports overall credit performance as solid: allowance for credit losses of $212.5 million (coverage ratio ~1.39%), nonaccruals described as idiosyncratic and manageable, and shared national/sponsor finance exposures diversified and monitored.
FRME Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
FRME Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 22, 2026 | $40.37 | $39.70 | -1.66% |
Jan 26, 2026 | $37.66 | $37.83 | +0.47% |
Oct 22, 2025 | $35.92 | $35.73 | -0.52% |
Jul 23, 2025 | $40.13 | $38.66 | -3.66% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does First Merchants Corp. (FRME) report earnings?
First Merchants Corp. (FRME) is schdueled to report earning on Jul 23, 2026, After Close (Confirmed).
What is First Merchants Corp. (FRME) earnings time?
First Merchants Corp. (FRME) earnings time is at Jul 23, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is FRME EPS forecast?
FRME EPS forecast for the fiscal quarter 2026 (Q2) is 1.03.