---
title: "First Merchants posts Q2 2026 net income $43.5M; adjusted EPS $0.74, NIM 3.38%"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/293517270.md"
description: "First Merchants reported Q2 2026 net income of $43.5 million ($0.70 diluted EPS), with adjusted net income at $46.4 million ($0.74 adjusted EPS). Net interest margin stood at 3.38%. Total assets reached $21.35 billion, with loans growing 5.8% annually to $15.53 billion. The company completed the First Savings acquisition systems conversion and recorded a $33 million provision for credit losses due to two nonaccrual commercial relationships."
datetime: "2026-07-22T20:23:01.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/293517270.md)
  - [en](https://longbridge.com/en/news/293517270.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/293517270.md)
generator: "portal-rs"
---

# First Merchants posts Q2 2026 net income $43.5M; adjusted EPS $0.74, NIM 3.38%

First Merchants reported second-quarter 2026 net income available to common stockholders of $43.5 million, or $0.70 per diluted common share, and adjusted net income of $46.4 million (adjusted diluted EPS $0.74). Net interest income was $158.9 million with a fully taxable-equivalent net interest margin of 3.38%. The quarter included acquisition-related costs and elevated provision expense tied to two commercial relationships placed on nonaccrual.

**Financial Highlights**

-   Net income available to common stockholders: $43.5 million for Q2 2026; diluted EPS $0.70.
-   Adjusted net income (non-GAAP): $46.4 million for Q2 2026; adjusted diluted EPS $0.74.
-   Net interest income: $158.9 million for the quarter; net interest margin (FTE) 3.38% (up 3 bps linked quarter).
-   Provision for credit losses: $33.0 million in Q2 2026; ACL for loans totaled $241.6 million (1.56% of loans).
-   Total assets: $21.35 billion; total deposits: $16.75 billion; Common Equity Tier 1 capital ratio: 11.16%.

**Business Highlights**

-   Loan growth: Loans totaled $15.53 billion at quarter end, up $221.7 million (5.8% annualized) on a linked-quarter basis and $2.2 billion year-over-year.
-   Mortgage servicing activity: Sold $271.1 million of mortgage loans during the quarter (weighted average rate 3.43%); $47.1 million of mortgage loans were returned to held-for-investment.
-   Deposit trends: Deposits increased $267.8 million on a linked-quarter basis and grew $2.0 billion year-over-year (including $1.7 billion from the First Savings acquisition).
-   Integration milestone: Successfully completed systems conversion of First Savings in mid-May, strengthening presence across Indiana, Ohio and Michigan.
-   Asset quality actions: Two commercial lending relationships placed on nonaccrual (combined outstanding $41.8 million) and reserves of $29.7 million recorded; nonperforming assets to total assets rose to 0.56%.

Original SEC Filing: FIRST MERCHANTS CORP \[ FRME \] - 8-K - Jul. 22, 2026

**Disclaimer**

This is an AI-powered summary. It may contain inaccuracies. Consider verifying important information with the source. Please note this summary is solely based on documents filed with the SEC.

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**