First Merchants Corporation reported third quarter 2026 revenue of $199.1 million and diluted earnings per share of $1.09, both exceeding analyst expectations. The results were characterized by significant expansion in net interest margins and stable organic loan growth despite a normalization in credit costs related to previously identified items.
Key Highlights
- Fully taxable equivalent net interest margin expanded to 3.44%, representing a 6 basis point increase from the prior quarter and a 20 basis point improvement year-over-year.
- Total deposits reached $16.9 billion, growing at a 4.2% annualized rate on a linked-quarter basis, while the loan-to-deposit ratio remained stable at 92.2%.
- Net charge-offs of $29.4 million were elevated during the quarter, driven by the resolution of two non-performing commercial credits for which specific reserves were established in the second quarter.
- The company announced a formal leadership succession plan, with President Mike Stewart slated to succeed retiring CEO Mark Hardwick at the end of 2026.