First Merchants Corporation Q3 2026 Earnings Recap

First Merchants reported higher year-over-year earnings and margin expansion, while loan growth was modest and commercial lending was flat. Shares rose 2.2% after the results, a relatively muted reaction.

Key Takeaways

• Q3 net income was $67.8 million, or $1.09 per diluted share; adjusted EPS was $1.10.
• Net interest margin increased 6 basis points sequentially to 3.44%, its highest level in more than two years; net interest income was up 20% year over year.
• Deposits grew at a 4.2% annualized rate, but loans grew just 1.8% annualized. Commercial loans were relatively flat as payoffs in sponsor finance and shared national credit portfolios offset production elsewhere.
• Management expects loan growth to continue in the mid-single digits in Q4; pipelines were described as stable.
• Credit costs were modest in Q3: provision expense was $3.3 million, and year-to-date net charge-offs were 38 basis points. Nonperforming assets were stable at 57 basis points of total assets.