First Merchants Posts Strong Q3 Earnings, Net Income Up 15.4%

TL;DR

**FRMEP is crushing it with a 15.4% net income jump and a smart acquisition, making it a solid buy for growth-focused investors.**

AI Summary

FIRST MERCHANTS CORP (FRMEP) reported a robust financial performance for the three months ended September 30, 2025, with net income increasing by 15.4% to $56.765 million from $49.187 million in the prior year. Net interest income also saw a positive trend, rising to $133.665 million from $131.110 million, a 1.9% increase. This growth was supported by a decrease in interest expense on deposits, which fell to $90.821 million from $98.856 million. Noninterest income significantly improved, jumping 30.6% to $32.477 million from $24.866 million, primarily due to the absence of net realized losses on sales of available-for-sale securities, which were $9.114 million in Q3 2024. The company's total assets grew to $18.811 billion from $18.311 billion at December 31, 2024, while total deposits increased to $14.869 billion from $14.521 billion. Loans, net of allowance for credit losses, expanded to $13.396 billion from $12.661 billion. The provision for credit losses decreased to $4.300 million from $5.000 million, indicating improved credit quality or a more stable economic outlook. Strategic outlook includes the pending merger with First Savings Financial Group, Inc., which is expected to further enhance the Corporation's market position.

Why It Matters

This strong Q3 performance, marked by a 15.4% increase in net income and a 30.6% surge in noninterest income, signals healthy operational efficiency and strategic gains for First Merchants. For investors, the improved profitability and reduced provision for credit losses suggest a more stable and potentially growing return on investment, especially with the upcoming merger with First Savings. Employees may see increased job security and opportunities within an expanding and profitable entity. Customers could benefit from a more robust and competitive banking institution, potentially leading to better services and offerings. In the broader market, this performance, coupled with the strategic acquisition of First Savings, positions First Merchants as a formidable regional player, intensifying competition among financial institutions.

Risk Assessment

Risk Level: low — The risk level is low due to a significant increase in net income by 15.4% to $56.765 million and a decrease in the provision for credit losses to $4.300 million from $5.000 million, indicating improved asset quality. Additionally, the company's total assets grew by $499.660 million, demonstrating balance sheet strength.

Analyst Insight

Investors should consider increasing their position in FRMEP, given the strong Q3 earnings growth and the strategic merger with First Savings. The reduced provision for credit losses and increased net interest income suggest a healthy financial trajectory and potential for continued capital appreciation.

Financial Highlights

debt To Equity

0.49

revenue

$166,142,000

operating Margin

N/A

total Assets

$18,811,629,000

total Debt

$1,177,854,000

net Income

$56,765,000

eps

$0.98

gross Margin

N/A

cash Position

$88,079,000

revenue Growth

+10.5%

Revenue Breakdown

Key Numbers

• $56.765M — Net Income (Increased by 15.4% from $49.187M in Q3 2024)
• $133.665M — Net Interest Income (Increased by 1.9% from $131.110M in Q3 2024)
• $32.477M — Total Noninterest Income (Increased by 30.6% from $24.866M in Q3 2024)
• $4.300M — Provision for Credit Losses (Decreased from $5.000M in Q3 2024)
• $18.811B — Total Assets (Increased from $18.311B at December 31, 2024)
• $14.869B — Total Deposits (Increased from $14.521B at December 31, 2024)
• $13.396B — Net Loans (Increased from $12.661B at December 31, 2024)
• $0.98 — Basic Net Income Per Share (Increased from $0.84 in Q3 2024)

Key Players & Entities

• FIRST MERCHANTS CORP (company) — Registrant and reporting entity
• First Savings Financial Group, Inc. (company) — Acquired entity in a pending merger
• U.S. Bank, N.A. (company) — Party to the Credit Agreement
• Nasdaq Stock Market LLC (regulator) — Exchange where FRME and FRMEP are registered
• $56,765,000 (dollar_amount) — Net income for Q3 2025
• $49,187,000 (dollar_amount) — Net income for Q3 2024
• $133,665,000 (dollar_amount) — Net interest income for Q3 2025
• $32,477,000 (dollar_amount) — Total noninterest income for Q3 2025
• $4,300,000 (dollar_amount) — Provision for credit losses for Q3 2025
• $18,811,629,000 (dollar_amount) — Total assets as of September 30, 2025

FAQ

Risk Factors

• Credit Risk [high — financial]: The company holds $13.396 billion in net loans. While the provision for credit losses decreased to $4.300 million from $5.000 million, indicating potential improvement, significant exposure to loan defaults remains a key risk.
• Interest Rate Sensitivity [high — market]: Net interest income is a primary driver of profitability. Fluctuations in interest rates can impact both interest income from loans and securities, and interest expense on deposits, affecting net interest margin.
• Integration Risk (Merger) [medium — operational]: The pending merger with First Savings Financial Group, Inc. presents integration challenges. Successful integration is crucial for realizing expected synergies and avoiding operational disruptions.
• Regulatory Compliance [medium — regulatory]: As a financial institution, FRMEP is subject to extensive regulation. Changes in regulatory requirements or failure to comply can lead to fines, penalties, and reputational damage.
• Liquidity Risk [medium — financial]: The company manages liquidity through deposits and borrowings. Significant shifts in deposit levels or increased reliance on more expensive borrowings could impact financial flexibility.
• Economic Downturn [medium — market]: A general economic slowdown could lead to increased loan delinquencies, higher credit losses, and reduced demand for banking services, impacting overall financial performance.
• Cybersecurity Threats [medium — operational]: The increasing reliance on technology and digital platforms exposes the company to cybersecurity risks, including data breaches and system disruptions.
• Valuation of Securities [low — financial]: The company holds $1.387 billion in investment securities available for sale and $1.995 billion in investment securities held to maturity. Unrealized gains/losses on these securities can impact comprehensive income and equity.

Industry Context

First Merchants Corp operates in the highly competitive banking industry. Key trends include the ongoing impact of interest rate environments on net interest margins, the increasing importance of non-interest income sources like fees and wealth management, and the consolidation within the sector, as evidenced by FRMEP's pending merger with First Savings Financial Group, Inc. Digital transformation and cybersecurity remain critical operational considerations for all players.

Regulatory Implications

As a financial institution, First Merchants Corp is subject to stringent regulatory oversight from bodies like the Federal Reserve and FDIC. Compliance with capital requirements, lending regulations, and consumer protection laws is paramount. The pending merger will also require regulatory approval, adding another layer of compliance scrutiny.

What Investors Should Do

1. Monitor merger integration progress
2. Analyze net interest margin trends
3. Evaluate noninterest income growth drivers
4. Assess credit quality indicators
5. Review capital adequacy and liquidity

Key Dates

• 2025-09-30: End of Third Quarter 2025 — Reporting period for the 10-Q, showing increased net income, net interest income, and noninterest income.
• 2024-09-30: End of Third Quarter 2024 — Prior year comparison period, highlighting a 15.4% increase in net income for Q3 2025.
• 2024-12-31: End of Fiscal Year 2024 — Balance sheet comparison date, showing growth in total assets, deposits, and net loans.

Glossary

Net Interest Income

The difference between the interest income generated by a bank and the interest it pays out to depositors and lenders. (A core measure of profitability for banks, directly impacted by loan and deposit rates.)

Noninterest Income

Revenue generated from sources other than interest, such as fees for services, trading gains, and other miscellaneous income. (Diversifies revenue streams and can be a significant contributor to overall profitability, especially when interest income is under pressure.)

Provision for Credit Losses

An expense set aside by a financial institution to cover potential losses from loans that may default. (Indicates management's assessment of credit risk in the loan portfolio and impacts net income.)

Available-for-Sale Securities

Investment securities that are not classified as held-to-maturity or trading securities. Their unrealized gains and losses are reported in other comprehensive income. (Impacts the company's equity through changes in fair value, as seen with the absence of realized losses in the current period.)

Held-to-Maturity Securities

Investment securities that a company has the intent and ability to hold until their maturity date. They are recorded at amortized cost. (Represents a significant portion of the company's investment portfolio, with fair value disclosed but not impacting net income until sold or impaired.)

Goodwill

An intangible asset that arises when one company acquires another for a price greater than the fair market value of its net assets. (Represents a significant portion of the company's intangible assets, indicating past acquisitions.)

Accumulated Other Comprehensive Loss

A component of equity that includes unrealized gains and losses on certain investments and other items that are not included in net income. (Reflects the impact of market fluctuations on the company's investment portfolio on its overall equity.)

Debt-to-Equity Ratio

A financial leverage ratio that measures the total liabilities of a company relative to its shareholder equity. (Indicates the extent to which a company is using debt financing compared to equity financing.)

Year-Over-Year Comparison

Compared to the prior year's third quarter, First Merchants Corp has demonstrated strong performance with a 15.4% increase in net income to $56.765 million, driven by a 30.6% surge in noninterest income, largely due to the absence of realized losses on securities. Net interest income saw a modest 1.9% increase, supported by lower deposit interest expenses. Total assets grew to $18.811 billion, and net loans expanded to $13.396 billion, indicating continued balance sheet growth. The provision for credit losses decreased, suggesting improved credit outlook or management's assessment.

Key Financial Figures

• $0.125 — ange on which registered Common Stock, $0.125 stated value per share FRME The Nasdaq

Filing Documents

• frme-20250930.htm (10-Q) — 4114KB
• exhibit31110q2025q3.htm (EX-31.1) — 9KB
• exhibit31210q2025q3.htm (EX-31.2) — 10KB
• exhibit3210q2025q3.htm (EX-32) — 9KB
• 0000712534-25-000197.txt ( ) — 19370KB
• frme-20250930.xsd (EX-101.SCH) — 63KB
• frme-20250930_cal.xml (EX-101.CAL) — 139KB
• frme-20250930_def.xml (EX-101.DEF) — 571KB
• frme-20250930_lab.xml (EX-101.LAB) — 1006KB
• frme-20250930_pre.xml (EX-101.PRE) — 754KB
• frme-20250930_htm.xml (XML) — 4781KB

Financial Information

Part I. Financial Information

Financial Statements

Item 1. Financial Statements: Consolidated Condensed Balance Sheets 4 Consolidated Condensed Statements of Income 5 Consolidated Condensed Statements of Comprehensive Income 6 Consolidated Condensed Statements of Stockholders' Equity 7 Consolidated Condensed Statements of Cash Flows 9 Notes to Consolidated Condensed Financial Statements 10

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 40

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 58

Controls and Procedures

Item 4. Controls and Procedures 59

Other Information

Part II. Other Information

Legal Proceedings

Item 1. Legal Proceedings 60

Risk Factors

Item 1A. Risk Factors 60

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 60

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 60

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 60

Other Information

Item 5. Other Information 60

Exhibits

Item 6. Exhibits 61

Signatures

Signatures 62 2 GLOSSARY OF DEFINED TERMS FIRST MERCHANTS CORPORATION ACL - Loans Allowance for Credit Losses on Loans ASC Accounting Standards Codification ASU Accounting Standards Update Bank First Merchants Bank, a wholly-owned subsidiary of the Corporation CECL Current Expected Credit Losses (FASB Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , adopted by the Corporation on January 1, 2021.) CET1 Common Equity Tier 1 CODM Chief operating decision maker Corporation First Merchants Corporation CRA Community Reinvestment Act Credit Agreement Credit agreement entered into on September 30, 2024 with U.S. Bank, N.A. Credit Facility Revolving line of credit related to Credit Agreement entered into on September 30, 2024 ESPP Employee Stock Purchase Plan Exchange Ratio 0.85 share of the Corporation's stock pursuant to the Merger Agreement FASB Financial Accounting Standards Board FDIC Federal Deposit Insurance Corporation Federal Reserve Board of Governors of the Federal Reserve System FHLB Federal Home Loan Bank First Savings First Savings Financial Group, Inc. FMC Trust II First Merchants Capital Trust II FTE Fully taxable equivalent GAAP U.S. Generally Accepted Accounting Principles IRA Inflation Reduction Act of 2022 Level One Level One Bancorp, Inc., which was acquired by the Corporation on April 1, 2022. 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 OBBBA The One Big Beautiful Bill Act, signed into law on July 4th, 2025 Old Second Old Second National Bank RSAs Restricted Stock Awards Senior Debt Fixed-to-Floating Rate Senior Notes due 2028 Subordinated Debt Fixed-to-Floating Rate Subordinated Notes due 2028 SOFR Secured Overnight Financing Rate 3

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

ITEM 1. CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (table dollar amounts in thousands, except share data) CONSOLIDATED CONDENSED BALANCE SHEETS September 30, 2025 December 31, 2024 (Unaudited) ASSETS Cash and due from banks $ 88,079 $ 87,616 Interest-bearing deposits 168,706 298,891 Investment securities available for sale 1,386,903 1,386,475 Investment securities held to maturity, net of allowance for credit losses of $ 245 and $ 245 (fair value of $ 1,707,064 and $ 1,723,520 ) 1,995,488 2,074,220 Loans held for sale 23,190 18,663 Loans 13,591,174 12,854,359 Less: Allowance for credit losses - loans ( 194,468 ) ( 192,757 ) Net loans 13,396,706 12,661,602 Premises and equipment 121,771 129,743 Federal Home Loan Bank stock 47,264 41,690 Interest receivable 89,102 91,829 Goodwill 712,002 712,002 Other intangibles 15,298 19,828 Cash surrender value of life insurance 306,583 304,906 Other real estate owned 1,270 4,948 Tax asset, deferred and receivable 89,758 92,387 Other assets 369,509 387,169 TOTAL ASSETS $ 18,811,629 $ 18,311,969 LIABILITIES Deposits: Noninterest-bearing $ 2,100,570 $ 2,325,579 Interest-bearing 12,769,409 12,196,047 Total Deposits 14,869,979 14,521,626 Borrowings: Federal funds purchased 199,370 99,226 Securities sold under repurchase agreements 122,226 142,876 Federal Home Loan Bank advances 798,626 822,554 Subordinated debentures and other borrowings 57,632 93,529 Total Borrowings 1,177,854 1,158,185 Interest payable 18,240 16,102 Other liabilities 333,154 311,073 Total Liabilities 16,399,227 16,006,986 COMMITMENTS AND CONTINGENT LIABILITIES STOCKHOLDERS' EQUITY Cumulative Preferred Stock, $ 1,000 par value, $ 1,000 liquidation value: Authorized - 600 cumulative shares Issued and outstanding - 125 cumulative shares 125 125 Preferred Stock, Series A, no par value, $ 2,500 liquidation preference: Authorized - 10,000 non-cumulative perpetual shares Issued and outstanding - 10,000 non-cumulative p

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

ITEM 1. CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (table dollar amounts in thousands, except share data) CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 INTEREST INCOME Loans receivable: Taxable $ 200,406 $ 206,680 $ 583,307 $ 606,116 Tax exempt 11,173 8,622 32,510 25,242 Investment securities: Taxable 8,288 9,263 24,926 27,062 Tax exempt 12,460 13,509 37,493 40,733 Deposits with financial institutions 1,676 2,154 5,940 11,642 Federal Home Loan Bank stock 1,092 855 3,172 2,569 Total Interest Income 235,095 241,083 687,348 713,364 INTEREST EXPENSE Deposits 90,821 98,856 255,609 296,292 Federal funds purchased 224 329 2,001 455 Securities sold under repurchase agreements 654 700 2,059 2,377 Federal Home Loan Bank advances 8,638 8,544 27,716 21,715 Subordinated debentures and other borrowings 1,093 1,544 3,014 5,781 Total Interest Expense 101,430 109,973 290,399 326,620 NET INTEREST INCOME 133,665 131,110 396,949 386,744 Provision for credit losses 4,300 5,000 14,100 31,500 NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 129,365 126,110 382,849 355,244 NONINTEREST INCOME Service charges on deposit accounts 8,921 8,361 25,559 24,482 Fiduciary and wealth management fees 8,842 8,525 26,317 25,550 Card payment fees 5,007 5,121 14,465 14,360 Net gains and fees on sales of loans 4,983 6,764 15,854 15,159 Derivative hedge fees 1,097 736 2,332 1,488 Other customer fees 414 344 1,230 1,231 Earnings on bank-owned life insurance 1,667 2,755 5,759 6,276 Net realized losses on sales of available for sale securities — ( 9,114 ) ( 8 ) ( 9,165 ) Other income 1,546 1,374 2,320 3,457 Total Noninterest Income 32,477 24,866 93,828 82,838 NONINTEREST EXPENSES Salaries and employee benefits 57,317 55,223 166,826 165,730 Net occupancy 7,057 6,994 21,118 21,052 Equipment 6,998 6,949 20,933 19,774 Marketing 2,120 1,836 5,470 4,807 Outside data proces

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

ITEM 1. CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (table dollar amounts in thousands, except share data) CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net income $ 56,765 $ 49,187 $ 168,936 $ 137,053 Other comprehensive income: Unrealized gains on securities available for sale: Unrealized holding gain arising during the period 43,178 67,030 41,538 21,399 Reclassification adjustment for losses included in net income — 9,114 8 9,165 Tax effect ( 9,067 ) ( 15,990 ) ( 8,725 ) ( 6,419 ) Total other comprehensive income, net of tax 34,111 60,154 32,821 24,145 Comprehensive income $ 90,876 $ 109,341 $ 201,757 $ 161,198 See NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS. 6

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

ITEM 1. CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (table dollar amounts in thousands, except share data) CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) Three Months Ended September 30, 2025 Cumulative Preferred Stock Non-Cumulative Preferred Stock Common Stock Additional Accumulated Other Shares Amount Shares Amount Shares Amount Paid in Capital Retained Earnings Comprehensive Loss Total Balances, June 30, 2025 125 $ 125 10,000 $ 25,000 57,272,433 $ 7,159 $ 1,163,170 $ 1,342,473 $ ( 189,975 ) $ 2,347,952 Comprehensive income: Net income — — — — — — — 56,765 — 56,765 Other comprehensive income, net of tax — — — — — — — — 34,111 34,111 Cash dividends on preferred stock ($ 46.88 per share) — — — — — — — ( 468 ) — ( 468 ) Cash dividends on common stock ($ 0.36 per share) — — — — — — — ( 20,804 ) — ( 20,804 ) Repurchases of common stock — — — — ( 162,474 ) ( 20 ) ( 6,456 ) — — ( 6,476 ) Excise tax on stock repurchases — — — — — — ( 32 ) — — ( 32 ) Share-based compensation — — — — 91,857 10 1,744 — — 1,754 Stock issued under employee benefit plans — — — — 4,802 1 162 — — 163 Stock issued under dividend reinvestment and stock purchase plan — — — — 14,881 2 595 — — 597 Stock options exercised — — — — 4,762 1 92 — — 93 Restricted shares withheld for taxes — — — — ( 33,764 ) ( 4 ) ( 1,249 ) — — ( 1,253 ) Balances, September 30, 2025 125 $ 125 10,000 $ 25,000 57,192,497 $ 7,149 $ 1,158,026 $ 1,377,966 $ ( 155,864 ) $ 2,412,402 Three Months Ended September 30, 2024 Cumulative Preferred Stock Non-Cumulative Preferred Stock Common Stock Additional Accumulated Other Shares Amount Shares Amount Shares Amount Paid in Capital Retained Earnings Comprehensive Loss Total Balances, June 30, 2024 125 $ 125 10,000 $ 25,000 58,045,653 $ 7,256 $ 1,191,193 $ 1,200,930 $ ( 211,979 ) $ 2,212,525 Comprehensive income: Net income — — — — — — — 49,187 — 49,187 Other comprehensive income, net of tax — — — — — — — — 60,154 60,154 Cash di

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

ITEM 1. CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (table dollar amounts in thousands, except share data) Nine Months Ended September 30, 2025 Cumulative Preferred Stock Non-Cumulative Preferred Stock Common Stock Additional Accumulated Other Shares Amount Shares Amount Shares Amount Paid in Capital Retained Earnings Comprehensive Loss Total Balances, December 31, 2024 125 $ 125 10,000 $ 25,000 57,974,535 $ 7,247 $ 1,188,768 $ 1,272,528 $ ( 188,685 ) $ 2,304,983 Comprehensive income: Net income — — — — — — — 168,936 — 168,936 Other comprehensive loss, net of tax — — — — — — — — 32,821 32,821 Cash dividends on preferred stock ($ 140.64 per share) — — — — — — — ( 1,406 ) — ( 1,406 ) Cash dividends on common stock ($ 1.07 per share) — — — — — — — ( 62,092 ) — ( 62,092 ) Repurchases of common stock — — — — ( 939,271 ) ( 117 ) ( 36,359 ) — — ( 36,476 ) Excise tax on common stock repurchases — — — — — — ( 325 ) — — ( 325 ) Share-based compensation — — — — 122,365 14 4,902 — — 4,916 Stock issued under employee benefit plans — — — — 14,117 2 478 — — 480 Stock issued under dividend reinvestment and stock purchase plan — — — — 44,748 6 1,731 — — 1,737 Stock options exercised — — — — 16,705 2 328 — — 330 Restricted shares withheld for taxes — — — — ( 40,702 ) ( 5 ) ( 1,497 ) — — ( 1,502 ) Balances, September 30, 2025 125 $ 125 10,000 $ 25,000 57,192,497 $ 7,149 $ 1,158,026 $ 1,377,966 $ ( 155,864 ) $ 2,412,402 Nine Months Ended September 30, 2024 Cumulative Preferred Stock Non-Cumulative Preferred Stock Common Stock Additional Accumulated Other Shares Amount Shares Amount Shares Amount Paid in Capital Retained Earnings Comprehensive Loss Total Balances, December 31, 2023 125 $ 125 10,000 $ 25,000 59,424,122 $ 7,428 $ 1,236,506 $ 1,154,624 $ ( 175,970 ) $ 2,247,713 Comprehensive income: Net income — — — — — — — 137,053 — 137,053 Other comprehensive income, net of tax — — — — — — — — 24,145 24,145 Cash dividends on preferred stock ($ 140.64 pe

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

ITEM 1. CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (table dollar amounts in thousands, except share data) CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended September 30, 2025 2024 Cash Flow from Operating Activities: Net income $ 168,936 $ 137,053 Adjustments to reconcile net income to net cash provided by operating activities: Provision for credit losses 14,100 31,500 Depreciation and amortization 23,718 10,602 Change in deferred taxes ( 2,095 ) 3,128 Share-based compensation 4,916 4,191 Loans originated for sale ( 358,898 ) ( 775,504 ) Proceeds from sales of loans held for sale 366,363 773,446 Gains on sales of loans held for sale ( 11,992 ) ( 10,508 ) Net losses on sales and redemptions of securities available for sale 8 9,165 Increase in cash surrender value of life insurance ( 4,667 ) ( 4,128 ) Gains on life insurance benefits ( 1,092 ) ( 2,148 ) Change in interest receivable 2,727 5,585 Change in interest payable 2,138 ( 319 ) Other adjustments ( 1,228 ) 16,643 Net cash provided by operating activities 202,934 198,706 Cash Flows from Investing Activities: Net change in interest-bearing deposits 130,185 76,954 Purchase of securities available for sale ( 10,609 ) ( 93,463 ) Proceeds from sales of securities available for sale — 149,771 Proceeds from maturities and redemptions of: Securities available for sale 47,991 33,346 Securities held to maturity 76,183 72,938 Purchases of Federal Home Loan Bank stock ( 5,644 ) — Redemptions of Federal Home Loan Bank stock 70 53 Payment of capital calls to qualified affordable housing investments ( 34,969 ) ( 22,238 ) Net change in loans ( 681,224 ) ( 206,478 ) Proceeds from the sale of other real estate owned 6,072 325 Proceeds from life insurance benefits 4,082 7,964 Proceeds from mortgage portfolio loan sale — 1,716 Proceeds from commercial portfolio loan sale — 3,273 Other adjustments ( 5,203 ) ( 25,046 ) Net cash used by investing activities ( 4

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

ITEM 1. NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (table dollar amounts in thousands, except share data) (Unaudited) NOTE 1 GENERAL Financial Statement Preparation The Consolidated Condensed Balance Sheet of the Corporation as of December 31, 2024, has been derived from the audited consolidated balance sheet of the Corporation as of that date. Certain information and note disclosures normally included in the Corporation's annual financial statements, prepared in accordance with accounting principles generally accepted in the United States of America, have been condensed or omitted. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2024 filed with the Securities and Exchange Commission. The results of operations for the three and nine months ended September 30, 2025, are not necessarily indicative of the results to be expected for the year. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses. Significant Accounting Policies The significant accounting policies followed by the Corporation and its wholly-owned subsidiaries for interim financial reporting are consistent with the accounting policies followed for annual financial reporting. All adjustments, which are of a normal recurring nature and are in the opinion of management necessary for a fair statement of the results for the periods reported, have been included in the accompanying Consolidated Condensed Financial Statements. Recent Accounting Changes Adopted in 2025 The Corporation did not adopt any new accounting standards during the three and nine months ended September 30, 2025. New Accounting Pronouncements Not Yet Adopted The Corporation continually monitors potential accounting pronouncements and the following pro

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

ITEM 1. NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (table dollar amounts in thousands, except share data) (Unaudited) NOTE 2 ACQUISITIONS AND DISPOSITIONS First Savings Financial Group, Inc. Acquisition On September 24, 2025, the Corporation and First Savings Financial Group, Inc., an Indiana corporation ("First Savings"), entered into an Agreement and Plan of Merger (the "Merger Agreement"), pursuant to which First Savings will, subject to the terms and conditions of the Merger Agreement, merge with and into the Corporation (the "Merger"), whereupon the separate corporate existence of First Savings will cease and the Corporation will survive. Immediately following the Merger, First Savings' wholly owned subsidiary, First Savings Bank, will be merged with and into the Bank, with the Bank as the surviving bank. Based on an assumption of 7,010,008 shares of First Savings common stock outstanding at the time of closing (which was the number of shares of First Savings common stock outstanding on October 15, 2025, plus 24,000 shares of restricted stock that First Savings intends to issue in November 2025), the Corporation expects to issue approximately 5.96 million shares of its common stock in exchange for all of the issued and outstanding shares of First Savings commo

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