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