--- title: "First Merchants | 8-K: FY2026 Q2 Revenue: USD 298 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/293515970.md" datetime: "2026-07-22T20:15:29.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293515970.md) - [en](https://longbridge.com/en/news/293515970.md) - [zh-HK](https://longbridge.com/zh-HK/news/293515970.md) --- # First Merchants | 8-K: FY2026 Q2 Revenue: USD 298 M Revenue: As of FY2026 Q2, the actual value is USD 298 M. EPS: As of FY2026 Q2, the actual value is USD 0.7, missing the estimate of USD 1.0217. EBIT: As of FY2026 Q2, the actual value is USD 49.07 M. #### Net Income Net income available to common stockholders was $43.5 million in the second quarter of 2026, compared to $27.7 million in the first quarter of 2026 and $56.4 million in the second quarter of 2025. On an adjusted basis, net income totaled $46.4 million in the second quarter of 2026, compared to $63.1 million in the prior quarter. For the six months ended June 30, 2026, reported net income was $71.2 million, compared to $111.2 million in the prior year, while adjusted net income was $109.5 million. #### Operational Metrics Adjusted pre-tax, pre-provision income was $84.6 million in the second quarter of 2026, compared to $78.7 million in the prior quarter and $70.7 million in the second quarter of 2025. Pre-Tax, Pre-Provision (PTPP) earnings for the second quarter of 2026 reached $84.6 million, with a PTPP Return on Assets (ROA) of 1.59% and PTPP Return on Equity (ROE) of 12.52%. Year-to-date, PTPP earnings were $163.3 million, with a PTPP ROA of 1.57% and PTPP ROE of 12.19%. Net interest margin on a fully taxable equivalent basis was 3.38% in the second quarter of 2026, increasing by 3 basis points from the prior quarter and 13 basis points from the second quarter of 2025. Net interest income for the second quarter totaled $158.9 million, an increase of $7.6 million, or 5.0%, compared to the prior quarter, and an increase of $25.9 million, or 19.5%, compared to the second quarter of 2025. Year-to-date, net interest income increased by $46.9 million, or 17.8%, to $310.2 million, and the net interest margin (FTE) was 3.36%, 13 basis points higher than the prior year’s year-to-date margin of 3.23%. Noninterest income totaled $37.2 million for the second quarter, an increase of $31.3 million compared to the prior quarter and an increase of $5.9 million compared to the second quarter of 2025. The linked quarter increase primarily reflects a negative valuation adjustment of - $29.8 million recorded in the first quarter on mortgage loans sold in the second quarter. Excluding this - $29.8 million loss on mortgage loans sold, noninterest income increased by $1.6 million, or 4.4%. Year-to-date, noninterest income decreased by - $18.4 million, or -30.0%, to $43.0 million; however, excluding the - $29.8 million loss on mortgage loans sold, noninterest income increased by $11.4 million. Noninterest expense totaled $115.3 million for the second quarter, a decrease of $9.8 million from the prior quarter but an increase of $21.7 million from the second quarter of 2025. Acquisition-related costs of $3.8 million were incurred during the second quarter, including $1.4 million in professional and other outside services and $1.0 million in equipment costs. Excluding acquisition costs, noninterest expense increased by $3.3 million, or 3.1%. Year-to-date, noninterest expense increased by $53.9 million, or 28.9%, to $240.4 million. The adjusted efficiency ratio for the second quarter was 53.22%. The reported efficiency ratio was 55.11%. Year-to-date, the efficiency ratio was 63.75%, with an adjusted efficiency ratio of 53.70%. #### Balance Sheet and Loan Performance Total assets for First Merchants Corporation were $21.3 billion as of quarter-end, compared to $18,592,777 thousand in the second quarter of 2025. Total assets grew by $2.7 billion, or 14.8%, year-over-year. Total loans were $15.5 billion as of quarter-end, up from $13,296,759 thousand in the second quarter of 2025. Loans increased by $221.7 million, or 5.8% annualized, on a linked quarter basis. Organic loan growth, excluding acquired loans and mortgage loan sale activity, was $697.9 million, or 5.2%, over the past twelve months, and $221.7 million, or 5.8% annualized, on a linked quarter basis. First Merchants Corporation sold $271.1 million of mortgage loans with a weighted average rate of 3.43% during the current quarter. Quarter-over-quarter, total loans increased by $268.8 million to $15.5 billion, representing a 7.0% annualized growth, with commercial loan growth at approximately $171 million (5.8% annualized) and consumer loan growth at approximately $51 million (5.8% annualized). Year-over-year, total loans increased by $2.2 billion, or 16.5%, to $15.5 billion. Investment securities totaled $3.3 billion, decreasing by $88.9 million, or 2.6%, over the last twelve months, and by $17.8 million, or 2.2% annualized, on a linked quarter basis. Total deposits equaled $16.8 billion as of quarter-end, increasing by $2.0 billion over the past twelve months. The acquisition of First Savings Financial Group, Inc. contributed $1.7 billion in deposits. Total deposits increased by $267.8 million, or 6.5% annualized, on a linked quarter basis. Quarter-over-quarter, total deposits increased by $267.8 million to $16.8 billion, representing a 6.5% annualized growth, with commercial deposits growing by 35.6% annualized to $8.7 billion, and consumer deposits declining by -12.5% annualized to $6.5 billion. Year-over-year, total deposits increased by $1.9 billion, or 13.2%, to $16.8 billion. Nonperforming assets to total assets were 0.56% in the second quarter, an increase from 0.43% on a linked quarter basis. Two commercial lending relationships with outstanding balances of $41.8 million were placed in nonaccrual status, and associated reserves of $29.7 million were recorded. Non-accrual loans increased to $118.2 million in the second quarter of 2026 from $89.6 million in the first quarter of 2026, primarily due to two new non-accruals totaling $41.8 million. The Allowance for Credit Losses – Loans (ACL) totaled $241.6 million as of quarter-end, or 1.56% of loans, representing an increase of $29.1 million from the prior quarter. Net charge-offs totaled $3.9 million, and a provision for credit losses of $33.0 million was recorded during the second quarter. The provision for credit losses was significantly higher than $4.9 million in the first quarter of 2026, driven by two non-accrual commercial credits. Year-to-date, the provision for credit losses was $37.9 million, an increase of $28.1 million compared to the prior year. #### Capital Position First Merchants Corporation maintained a Common Equity Tier 1 Capital Ratio of 11.16%. The total risk-based capital ratio was 12.98%, and the tangible common equity ratio totaled 8.99%. Tangible Book Value per share was $29.80, a 1.6% increase over the prior quarter and up 6.8% over the prior year. Total Equity increased by $349.2 million, or 14.9%, to $2.7 billion year-over-year. #### Shareholder Activity First Merchants Corporation repurchased 976,631 shares of common stock totaling $38.3 million year-to-date, including 336,145 shares totaling $13.4 million in the second quarter. #### Outlook/Guidance First Merchants Corporation’s corporate strategy focuses on organic growth through deeper relationships, enhanced technology, and customer-centric products within its Midwestern markets. The company also intends to pursue targeted acquisitions to expand its reach and impact. 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