Liquidity management remains a priority, evidenced by the strategic sale of $295.3 million in investment securities during 2026Q1 to support ongoing operations.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 280.54M | 283.65M | 266.21M | 258.83M | 284.29M | 215.34M | 204.81M | 178.41M | 180.24M | 126.5M | 103.72M | 56.66M | 75.84M | 183.13M | 70.27M | 85.48M | 81.05M | 17.61M | 39.01M | 49.61M | 36.28M | 46.49M | 39.95M | 65.67M | 17.7M | 31.21M | 29.79M | 25.7M | 19.4M | 19.3M | 16.8M |
| Operating CF Growth % | 13.65% | 6.55% | 2.85% | -8.95% | 32.02% | 5.14% | 14.8% | -1.01% | 42.48% | 21.97% | 83.06% | -25.29% | -58.59% | 160.61% | -17.8% | 5.47% | 360.26% | -54.86% | -21.37% | 36.76% | -21.97% | 16.38% | -39.16% | 271.12% | -43.31% | 4.79% | 15.89% | 32.47% | 0.52% | 14.88% | 42.37% |
| Net Income | 198.82M | 226M | 201.4M | 223.79M | 222.09M | 205.53M | 148.6M | 164.46M | 159.14M | 96.07M | 81.05M | 65.38M | 60.16M | 44.53M | 45.12M | 25.25M | 6.91M | -40.76M | 20.64M | 31.64M | 30.2M | 30.24M | 29.41M | 27.57M | 27.84M | 22.21M | 19.94M | 19.1M | 17.9M | 16.5M | 13.1M |
| Depreciation & Amortization | 30.58M | 29.42M | 26.85M | 11.71M | 11.81M | 10.7M | 11.01M | 9.38M | 8.84M | 7.97M | 7.16M | 6.26M | 6.01M | 4.67M | 4.47M | 5.16M | 5.7M | 5.96M | 4.61M | 4.33M | 5.38M | 5.07M | 5.06M | 4.77M | 7.29M | 4.67M | 4.17M | 3.1M | 2.9M | 2.6M | 1.9M |
| Deferred Taxes | 6.85M | 2.22M | 1.62M | 6.6M | 9.06M | 6.98M | -9.73M | 4.96M | 3.52M | 15.52M | 8.61M | 4.44M | 15.05M | 2.15M | 15.89M | 8.26M | -1.81M | -10.86M | -8.67M | 0 | 0 | 0 | 0 | 0 | -503K | 616K | -767K | -1.1M | 200K | -100K | 400K |
| Other Non-Cash Items | 57.71M | 24.6M | 33.15M | 16.03M | 58.87M | -4M | 62.91M | 1.89M | 11.69M | 14.83M | 9.69M | -15.78M | -8.34M | 20.88M | 2.86M | 45.89M | 67.81M | 60.95M | 27.66M | 12.02M | 2.4M | 12.09M | 6.22M | 33.66M | -16.37M | 2.93M | 5.79M | 4.6M | -1.2M | 500K | 1M |
| Working Capital Changes | -20.84M | -5.93M | -2.63M | -4.45M | -22.2M | -8.64M | -13.55M | -8.09M | -6.55M | -10.71M | -5.39M | -5.92M | 787K | 109.13M | 433K | -386K | 695K | 25K | -7.13M | 1.62M | -1.71M | -909K | -747K | -327K | -555K | 787K | 654K | 0 | -400K | -200K | 400K |
| Cash from Investing | -245.33M | -773.82M | -252.42M | -344.43M | -462.69M | -1.48B | -1.55B | -1.01B | -575.58M | -635.33M | -448.7M | -340.39M | -125.99M | -138.16M | 11.89M | -28.16M | 109.85M | 258.49M | -140.19M | -197.58M | -298M | -65.19M | -163.83M | -103.77M | -100.52M | 27.47M | -31.91M | -119.1M | -144.1M | -67.2M | -73.5M |
| Purchase of Investments | -63.83M | -67.75M | -124.39M | -50.19M | -755.28M | -2.09B | -1.31B | -1.1B | -400.75M | -509.26M | -392.27M | -287.44M | -253.92M | -409.64M | -143.82M | -283.39M | -491.78M | -551.54M | -29.32M | -79.56M | -100.85M | -98.2M | -214.39M | -260.47M | -183.23M | -35.09M | -12.15M | -152.3M | -194.2M | -80.6M | -136.4M |
| Sale/Maturity of Investments | 424.92M | 164.86M | 395.66M | 549.3M | 963.41M | 687.96M | 827.24M | 401.69M | 298.53M | 237.23M | 360.19M | 245.35M | 264.33M | 197.03M | 232.61M | 181.98M | 224.32M | 482.15M | 116.21M | 95.71M | 71.88M | 73.95M | 148.63M | 232.25M | 189.94M | 113.07M | 70.25M | 147.3M | 110.1M | 112.3M | 145.3M |
| Net Investment Activity | 361.08M | 97.11M | 271.26M | 499.11M | 208.12M | -1.4B | -484.98M | -698.48M | -102.22M | -272.03M | -32.07M | -42.08M | 10.41M | -212.61M | 88.79M | -101.4M | -267.46M | -69.39M | 86.89M | 16.14M | -28.97M | -24.25M | -65.76M | -28.22M | 6.72M | 77.98M | 58.1M | -5M | -84.1M | 31.7M | 8.9M |
| Acquisitions | 0 | 0 | -243.5M | 0 | 137.78M | -2.93M | 0 | 10.21M | 0 | 54.54M | 0 | 7.22M | -10.08M | 10.99M | 29.11M | 0 | 0 | 0 | 6.93M | -370K | -59K | -213K | -201K | -7.79M | -12.53M | 5.26M | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -606.42M | -870.94M | -280.18M | -843.54M | -808.59M | -72.2M | -1.07B | -318.13M | -473.36M | -417.83M | -416.63M | -305.53M | -126.32M | 63.45M | -106.02M | 73.24M | 377.31M | 327.88M | -234.02M | -213.35M | -268.97M | -40.73M | -97.86M | -67.75M | -89.85M | -53.34M | -85.6M | -110.4M | -54.8M | -96.3M | -80.3M |
| Cash from Financing | -23.23M | 486.72M | -38.82M | 75.65M | 133.84M | 1.24B | 1.36B | 865.95M | 379.68M | 535.81M | 370.74M | 267.29M | 59.33M | -36.99M | -54.01M | -42.32M | -311.74M | -247.44M | 116.98M | 192.69M | 281.26M | 19.15M | 84.31M | 28.59M | 98.83M | -23.12M | -14.7M | 97M | 161.7M | 51.1M | 13.9M |
| Dividends Paid | -87.12M | -84.79M | -83.5M | -81.94M | -74.15M | -61.23M | -56.54M | -51.28M | -41.66M | -31.82M | -22.2M | -15.65M | -10.69M | -7.99M | -7.44M | -4.73M | -5.92M | -14.25M | -16.77M | -16.85M | -16.95M | -16.98M | -17.05M | -16.56M | -13.99M | -11.13M | -10.33M | -9.8M | -7.9M | -7.1M | -5.4M |
| Share Repurchases | -63.9M | -46.89M | -56.17M | 0 | 0 | -25.44M | -55.91M | -19.04M | -1.9M | -1.28M | -1.98M | -1.64M | -1.07M | -91.27M | -235K | -69.73M | -76K | -193K | -2.19M | -12.75M | 0 | -9.66M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock Issued | 3.25M | 3.42M | 2.26M | 2.18M | 2.06M | 1.88M | 1.73M | 1.53M | 1.21M | 991K | 835K | 661K | 523K | 325K | 202K | 21.25M | 24.24M | 1.35M | 1.79M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Stock Activity | -60.65M | -43.47M | -53.91M | 2.18M | 2.06M | -23.56M | -54.19M | -17.51M | -691K | -292K | -1.15M | -979K | -544K | -90.95M | -33K | -48.47M | 24.16M | 1.16M | -394K | -12.75M | 0 | -9.66M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Debt Issuance (Net) | 0 | -1000K | 1000K | -1000K | 1000K | -1000K | -1000K | -1000K | -1000K | 1000K | 1000K | 1000K | -1000K | 1000K | -1000K | 1000K | -1000K | -1000K | -1000K | 1000K | -1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K |
| Other Financing | 334.02M | 773.23M | -30.82M | 440.57M | -279.56M | 1.37B | 1.52B | 977.76M | 585.58M | 500.98M | 269.58M | 163.73M | 182.37M | -69.75M | 86.35M | -133.92M | -267.12M | -182.22M | 221.11M | 93.7M | 368.05M | -25.57M | 46.05M | 53.85M | 8.12M | -17.32M | -17.35M | 111M | 146.5M | 41.4M | 10.6M |
| Net Change in Cash | 11.97M | -3.46M | -25.03M | -9.95M | -44.55M | -25.75M | 15.7M | 37.95M | -15.66M | 26.98M | 25.76M | -16.45M | 9.18M | 7.97M | 28.15M | 15.01M | -120.84M | 28.66M | 15.8M | 44.73M | 19.54M | 457K | -39.57M | -9.51M | 16.01M | 35.56M | -16.83M | 3.5M | 37.1M | 3.2M | -77.9M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -100K | 0 | 0 | 0 |
| Cash at Beginning | 84.16M | 87.62M | 112.65M | 122.59M | 167.15M | 192.9M | 177.2M | 139.25M | 154.91M | 127.93M | 102.17M | 118.62M | 109.43M | 101.46M | 73.31M | 58.31M | 179.15M | 150.49M | 134.68M | 89.96M | 70.42M | 69.96M | 109.53M | 119.04M | 103.03M | 67.46M | 84.29M | 80.8M | 43.7M | 40.5M | 77.9M |
| Cash at End | 98.08M | 84.16M | 87.62M | 112.65M | 122.59M | 167.15M | 192.9M | 177.2M | 139.25M | 154.91M | 127.93M | 102.17M | 118.62M | 109.43M | 101.46M | 73.31M | 58.31M | 179.15M | 150.49M | 134.68M | 89.96M | 70.42M | 69.96M | 109.53M | 119.04M | 103.03M | 67.46M | 84.3M | 80.8M | 43.7M | 91.8M |
| Interest Paid | 388.21M | 386.65M | 429.7M | 337.1M | 80.03M | 36.48M | 69.85M | 107.6M | 67.87M | 36.33M | 26.82M | 24.9M | 20.41M | 16.64M | 24.7M | 39.23M | 57.46M | 80.23M | 89.57M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Income Taxes Paid | 10.94M | 20.75M | 7.63M | 34.84M | 13.82M | 31.17M | 33.2M | 23.59M | 23.29M | 22.42M | 12M | 21.2M | 6.21M | 7.58M | 11.74M | 2.98M | 17.67M | 3.18M | 18.39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | 280.54M | 283.65M | 266.21M | 258.83M | 284.29M | 215.34M | 204.81M | 176.73M | 180.24M | 126.5M | 103.72M | 56.66M | 75.84M | 183.13M | 70.27M | 85.48M | 81.05M | 17.61M | 39.01M | 49.61M | 36.28M | 46.49M | 39.95M | 65.67M | 12.84M | 28.77M | 25.38M | 22M | 14.2M | 16.7M | 14.7M |
| FCF Growth % | 4.26% | 6.55% | 2.85% | -8.95% | 32.02% | 5.14% | 15.89% | -1.95% | 42.48% | 21.97% | 83.06% | -25.29% | -58.59% | 160.61% | -17.8% | 5.47% | 360.26% | -54.86% | -21.37% | 36.76% | -21.97% | 16.38% | -39.16% | 411.4% | -55.37% | 13.39% | 15.35% | 54.93% | -14.97% | 13.61% | 51.55% |
Regional funding cost sensitivity
According to reported financial data, First Merchants Corporation maintained a consistent dividend payout profile while generating net income of $28.2 million in 2026Q1, suggesting that the bank is prioritizing the preservation of regulatory capital buffers amidst ongoing regional economic uncertainty and potential credit cycle volatility.
The bank's ability to sustain dividend payments while navigating fluctuating net income levels indicates a disciplined approach to capital management. Investors should monitor whether the current retention rate remains sufficient to support organic loan growth without necessitating external capital raises in the near term.
As reported in recent cash flow statements, First Merchants Corporation realized significant proceeds from investment sales, including $295.3 million in 2026Q1, which appears to be a strategic effort to bolster liquidity and manage duration risk within the bank's broader investment securities portfolio.
The periodic liquidation of securities suggests management is actively rebalancing the balance sheet to offset funding pressures. This activity warrants further investigation into whether these sales are driven by a need to fund loan originations or a tactical shift to mitigate interest rate sensitivity.
Based on the provided cash flow figures, First Merchants Corporation allocated $24.9 million to share repurchases in 2026Q1, a notable increase that may indicate management's confidence in the bank's valuation despite the observed volatility in quarterly net income and rising operational expenses.
While the commitment to buybacks signals shareholder-friendly intent, the sustainability of this pace depends on the bank's ability to maintain stable earnings growth. Analysts should evaluate whether these repurchases are being funded by core earnings or through the liquidation of investment assets.
As evidenced by the $24.5 million provision expense recorded in 2024Q2, First Merchants Corporation's cash flow profile remains sensitive to periodic credit loss adjustments, which appear to reflect management's qualitative assessment of the Midwest economic environment rather than purely realized loan losses.
The inconsistency in provision levels suggests that the bank's cash flow is subject to significant non-cash accounting swings under the CECL framework. Investors should monitor these fluctuations as they may obscure the underlying health of the loan book and the actual credit performance of the regional portfolio.
Quick answers to the most common questions about buying FRME stock.
First Merchants Corporation (FRME) generated $283.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
First Merchants Corporation (FRME) generated $283.6M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
First Merchants Corporation (FRME) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, First Merchants Corporation (FRME) returned $84.8M to shareholders via cash dividends and spent $46.9M on share repurchases. This shows the company's commitment to returning capital to its equity investors.