First Merchants (FRME) investor relations material

Executive summary

• Completed acquisition of First Savings on February 1, 2026, expanding to 127 banking centers and adding $2.4B in assets; system integration planned for Q2 2026.

• Adjusted net income was $63.1M ($1.03/share), excluding $17M in acquisition expenses and a $29.8M mortgage loan loss; reported net income was $27.7M ($0.45/share).

• Share repurchases totaled 708,856 shares ($27.6M) year-to-date through April.

• Integration of First Savings is on track, with minimal turnover and strong client retention.

• Strong capital position maintained with CET1 ratio at 11.22%.

Financial highlights

• Total assets reached $21.1B, up 43% year-over-year; total loans $15.3B, total deposits $16.5B.

• Net interest income rose to $157.7M, up $12.4M sequentially and $21.3M YoY; net interest margin (FTE) increased to 3.35%.

• Adjusted ROA was 1.25%; adjusted return on tangible common equity was >14%; adjusted ROE 9.51%.

• Efficiency ratio was 74.45%; adjusted efficiency ratio 54.21%.

• Tangible book value per share down 2.8% sequentially, up 7.3% YoY.

Outlook and guidance

• Expect mid-single-digit loan growth for 2026, with strong commercial and deposit pipelines.

• Net interest margin expected to rise a few basis points in coming quarters.

• Non-interest income projected to lift 3%-4% in Q2 and similar trajectory in H2.

• Quarterly expense run rate expected at $111M-$114M post-synergies.

• Effective tax rate expected at 13%.