First Merchants

Q2 FY2026 EarningsQ2 FY2026 net income reached $43.5M, down 22.8% YoY but up 57.2% QoQ. Adjusted diluted EPS was $0.74, reflecting a 24.5% YoY decrease. Net interest margin (FTE) expanded to 3.38%, up 3bps QoQ and 13bps YoY. Loan and deposit growth remained steady at 5.8% and 6.5% annualized respectively. Credit quality showed stress as nonperforming assets rose to 0.56% of total assets due to $41.8M in new nonaccrual commercial relationships, triggering a $33.0M provision.