First Merchants Projects Mid-to-High Single-Digit Loan Growth for 2025

First Merchants has announced mid-to-high single-digit loan growth guidance for 2025. The company did not provide specific loan growth targets for the year, but emphasized its focus on strategic, high-return lending in key markets. First Merchants also highlighted its strong capital position, with a solid capital-to-assets ratio and a high level of liquidity. The bank's net income for Q4 2022 was $83.2 million, up 37% from the previous year.

First Merchants Corporation (NASDAQ: FRME) reported robust financial results for the first quarter of 2025, with net income of $54.9 million and diluted earnings per share (EPS) of $0.94. This represents a 9.2% increase in net income and a 9.4% increase in EPS compared to the same period in 2024 [1].

Key highlights from the quarter include a 4.8% annualized loan growth quarter-over-quarter (QoQ) and a 4.4% year-over-year (YoY) growth, totaling $547.2 million. The company's total assets stood at $18.4 billion, with loans amounting to $13.0 billion. Total deposits decreased by $422.6 million (2.8% YoY), reflecting the sale of five Illinois branches [1].

First Merchants maintained a strong capital position, with a Common Equity Tier 1 Capital Ratio of 11.50% and a total risk-based capital ratio of 13.22%. The bank's net interest income was $130.3 million, with a fully taxable equivalent net interest margin of 3.22%. Non-performing assets to total assets increased to 0.47%, up from 0.43% in the prior quarter [1].

In addition to its strong financial performance, First Merchants has guided for mid-to-high single-digit loan growth for 2025. The company emphasized its focus on strategic, high-return lending in key markets. While specific loan growth targets were not provided, the bank's emphasis on organic loan growth funded by low-cost core deposits, margin stabilization, and fee income growth indicates a conservative yet ambitious approach [2].

The bank's net income for Q4 2022 was $83.2 million, up 37% from the previous year, further underscoring its financial stability and growth trajectory [1].

First Merchants Corporation will conduct a fourth quarter earnings conference call and webcast on April 24, 2025, at 11:30 a.m. (ET). For more information, visit [1].

References:
[1] https://www.stocktitan.net/news/FRME/first-merchants-corporation-announces-first-quarter-2025-earnings-gs88ojdb7d1v.html
[2] https://www.sfchronicle.com/business/article/first-merchants-q1-earnings-snapshot-20292063.php