FRMEPMEDIUM SIGNALFINANCIAL10-K

First Merchants Corporation reported solid earnings growth and increased share count, indicating potential capital raising activity alongside continued shareholder returns.

The company's net income grew meaningfully by 12.2% year-over-year, demonstrating solid operational performance in the banking sector. However, the notable 8% increase in outstanding shares (from 58.5M to 63.4M) suggests potential equity issuance or acquisition activity that investors should monitor for dilution impacts.

Comparing 2026-02-25 vs 2025-02-24View on EDGAR →
FINANCIAL ANALYSIS

First Merchants showed healthy financial momentum with net income growing 12.2% to $226.0 million while building a stronger cash position, with cash and equivalents rising 27.3% to $177.2 million. The company modestly reduced share buybacks to $46.9 million from $56.2 million, while the substantial increase in outstanding shares suggests capital deployment activities. Overall, the financial picture reflects a bank expanding its balance sheet capacity while maintaining profitable growth.

FINANCIAL STATEMENT CHANGES
Cash & Equivalents
Balance Sheet
+27.3%
$139.2M$177.2M

Cash grew 27.3% — improving liquidity position supports investment and shareholder returns.

Share Buybacks
Cash Flow
-16.5%
$56.2M$46.9M

Buyback activity reduced 16.5% — capital being redeployed elsewhere or cash conservation underway.

Net Income
P&L
+12.2%
$201.4M$226.0M

Net income grew 12.2% — bottom-line growth signals improving overall business health.

LANGUAGE CHANGES
NEW — 2026-02-25
PRIOR — 2025-02-24
ADDED
As of February 19, 2026 there were 63,392,748 outstanding common shares of the registrant.
Management's Discussion and Analysis of Financial Condition and Results of Operations 34 Item 7A.
Form 10-K Summary 114 Signatures 115 2 GLOSSARY OF DEFINED TERMS FIRST MERCHANTS CORPORATION ACL - Loans Allowance for Credit Losses on Loans ACL - Investments Allowance for Credit Losses on Investment Securities Held to Maturity AOCI Accumulated Other Comprehensive Income ASC Accounting Standards Codification ASU Accounting Standards Update Bank First Merchants Bank, a wholly-owned subsidiary of the Corporation BOLI Bank owned life insurance BHC Act Bank Holding Company Act of 1956, as amended BSA Bank Secrecy Act CECL FASB Accounting Standards Update No.
CET1 Common equity tier 1 CFPB Consumer Financial Protection Bureau CISO Chief Information Security Officer CME Term SOFR A forward-looking term Secured Overnight Financing Rate, as administered by CME Group Benchmark Administration Limited.
CODM Chief operating decision maker Corporation First Merchants Corporation COSO Committee of Sponsoring Organizations of the Treadway Commission COVID or COVID-19 2019 novel coronavirus disease, which was declared a pandemic by the World Health Organization on March 11, 2020.
CRA Community Reinvestment Act of 1977 Credit Facility Revolving line of credit related to Credit Agreement entered into on September 30, 2024 Dodd-Frank Act Dodd-Frank Wall Street Reform and Consumer Protection Act Economic Growth Act The Economic Growth, Regulatory Relief, and Consumer Protection Act enacted in May 2018.
FOMC Federal Open Market Committee, the monetary policymaking body of the Federal Reserve System FTE Fully taxable equivalent GAAP Accounting Principles Generally Accepted in the United States of America IRA Inflation Reduction Act of 2022 Level One Level One Bancorp, Inc., which was acquired by the Corporation on April 1, 2022.
LIHTC Low income housing tax credit MBT MBT Financial Corp., which was acquired by the Corporation on September 1, 2019.
Merger The merger of First Savings with and into the Corporation pursuant to the Merger Agreement Merger Agreement Agreement and Plan of Merger entered into on September 24, 2025 with First Savings Non-PCD Insignificant credit deteriorated OREO Other real estate owned PCD Purchased credit deteriorated PDIF Public Deposit Insurance Fund PPP Paycheck Protection Program, which was established by the CARES Act and implemented by the Small Business Administration to provide small business loans.
PSA Public Securities Association ROU Right of Use RSAs Restricted Stock Awards Sarbanes-Oxley Act Sarbanes-Oxley Act of 2002 Savings Plan The First Merchants Corporation Retirement and Income Savings Plan SEC Securities and Exchange Commission Senior Debt Fixed-to-Floating Rate Senior Notes due 2028 Treasury U.S.
REMOVED
As of February 19, 2025 there were 58,535,244 outstanding common shares, without par value, of the registrant.
Management's Discussion and Analysis of Financial Condition and Results of Operations 35 Item 7A.
CET1 Common equity tier 1 CFPB Consumer Financial Protection Bureau CME Term SOFR A forward-looking term Secured Overnight Financing Rate, as administered by CME Group Benchmark Administration Limited.
CODM Chief operating decision maker Corporation First Merchants Corporation COVID or COVID-19 2019 novel coronavirus disease, which was declared a pandemic by the World Health Organization on March 11, 2020.
CRA The Community Reinvestment Act of 1977 Dodd-Frank Act Dodd-Frank Wall Street Reform and Consumer Protection Act Economic Growth Act The Economic Growth, Regulatory Relief, and Consumer Protection Act enacted in May 2018.
LIBOR Act Adjustable Interest Rate (LIBOR) Act enacted on March 15, 2022 LIHTC Low income housing tax credit MBT MBT Financial Corp., which was acquired by the Corporation on September 1, 2019.
OREO Other real estate owned PCD Purchased credit deteriorated loans PDIF Public Deposit Insurance Fund PPP Paycheck Protection Program, which was established by the CARES Act and implemented by the Small Business Administration to provide small business loans.
ROU Right of Use RSA Restricted Stock Awards Sarbanes-Oxley Act Sarbanes-Oxley Act of 2002 Savings Plan The First Merchants Corporation Retirement and Income Savings Plan SBA Small Business Administration SEC Securities and Exchange Commission SOFR Secured Overnight Funding Rate Treasury U.S.
GENERAL The Corporation is a financial holding company headquartered in Muncie, Indiana and was organized in September 1982.
The Bank includes 110 banking locations in Indiana, Ohio, and Michigan.
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