First Merchants

Q2 FY2026 EarningsFY26 Q2 significantly missed consensus on profitability, reporting GAAP diluted EPS of $0.70 vs. $1.02 expected (-31.37%). While NIM beat expectations slightly at 3.38% (vs. 3.375% consensus), net income was heavily weighed down by a $33.0M provision for credit losses, including $29.7M in specific reserves for two commercial lending relationships. Total revenue of $196.1M missed the $202.7M consensus due to integration friction from the First Savings acquisition and a lower-than-anticipated non-interest income performance.