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Dec 31, 2025
First Merchants Q4 2025 Earnings Report
First Farmers reported a modest decrease in net income during Q4 2025 due to higher non-interest expenses, despite a solid increase in net interest income.
Key Takeaways
In Q4 2025, First Farmers saw a slight dip in net income, driven by increased strategic investments. Net interest income rose year-over-year, continuing its positive momentum. Asset quality remained strong, and capital ratios improved further.
Net interest income grew 17.3% YoY to $14.2 million in Q4 2025.
Net interest margin expanded to 3.37%, up 55 bps YoY.
Non-interest expense rose 20% YoY due to strategic personnel investments.
Book value per share increased to $43.17, up 26.7% YoY.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
First Farmers plans to continue strategic growth in 2026 through market expansion and technology modernization, backed by a strong capital base.
Positive Outlook
- Expansion into the Chattanooga market gaining early traction
- Recognized as a top SBA lender in Tennessee
- Improved liability mix reducing funding costs
- Strong capital base enables flexibility for investments and returns
- Book value per share up 26.7% YoY
Challenges Ahead
- Q4 net income slightly declined due to increased expenses
- Non-interest expense rose 20% YoY
- Salaries and benefits jumped significantly
- Deposit base saw a slight YoY decline
- Efficiency ratio worsened compared to prior year
Historical Earnings Impact
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Avg. Return Before/After Earnings
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