First Merchants Corporation Delivers Strong Q3 2026 Performance, Beats Expectations
First Merchants Corporation has reported a strong third quarter 2026 performance, beating expectations with its earnings per share (EPS) up 11% from the same period last year.
According to the company's CEO, Mark Hardwick, during a conference call on October 22, 2026, First Merchants' EPS reached $1.09 per diluted share, with adjusted EPS totaling $1.10 for the quarter. This marks a significant improvement from the third quarter of 2024, where the EPS was nearly 30% higher.
One of the key highlights of the quarter is the expansion of net interest margin (NIM), which rose by 6 basis points to 3.44%, marking its highest level in over two years. This represents a 20-basis-point increase from the third quarter of 2025 and a 20% growth in fully taxable equivalent net interest income compared to the same period last year.
Adjusted pre-tax, pre-provision earnings (APPP) also showed significant improvement, reaching $83.7 million, up 19% from the previous year's performance. The return on assets (ROA) was at 1.30%, while the return on tangible common equity (ROTCE) stood at 15.09%. Net charge-offs were in line with expectations, and non-performing assets remained stable at 57 basis points of total assets.
On a positive note, deposits grew by $175.6 million or 4.2% annualized, with non-interest-bearing deposits now accounting for 22% of the company's total deposits. However, loan growth was more modest, increasing by only 1.8% annually.
The company also highlighted its progress in commercial lending, citing two specific credits where net charge-offs were in line with the reserves established earlier this year. This reflects the company's efforts to manage risk and maintain a strong credit profile.
As for its capital position, First Merchants reported that it has completed a $100 million subordinated debt issuance and repurchased $50.3 million of common stock year-to-date. The total risk-based capital ratio increased to 13.58%, while tangible common equity was at 8.83%.
First Merchants' CFO, Michele Kawiecki, highlighted the company's ability to deliver strong results despite a challenging economic environment. As she noted, 'The third quarter delivered on our belief that the key factors were in place for improved performance in the second half of the year.'
