First Merchants Corporation Q1 2026 Earnings Recap

First Merchants delivered solid Q1 results with adjusted EPS up 9.6% year-over-year, driven by net interest margin expansion and fee income growth, despite one-time acquisition expenses and portfolio repositioning impacts.

Key Takeaways

• Adjusted earnings per share reached $1.03, reflecting strong operational performance amidst integration costs.
• Loan growth remained stable, with record production in real estate and asset-based teams; mid-single-digit full-year growth outlook maintained.
• Deposit franchise showed resilience, with high-cost public and brokered funds declining, supporting margin improvements.
• Strategic loan repositioning and disciplined deposit pricing contributed to margin expansion and enhanced earnings quality.
• Integration with First Savings Bank progressing on plan, with robust client engagement and development of SBA and specialty verticals to bolster fee income.