Quarterly ResultJul 22, 2026, 04:18 PM
First Merchants Q2 EPS $0.70; Credit Provision $33M on Nonaccruals
AI Summary
First Merchants Corporation reported second quarter 2026 net income of $43.5 million, or $0.70 diluted EPS, compared to $0.98 in Q2 2025. Adjusted diluted EPS was $0.74. Results were significantly impacted by a $33.0 million provision for credit losses, primarily due to two commercial lending relationships totaling $41.8 million placed on nonaccrual status. Despite this, the company achieved solid loan and deposit growth, an expanding net interest margin of 3.38%, and strong adjusted pre-tax, pre-provision income of $84.6 million.
Key Highlights
- Net income available to common stockholders was $43.5 million ($0.70 diluted EPS).
- Adjusted diluted EPS was $0.74, compared to $1.03 in the prior quarter.
- Provision for credit losses increased to $33.0 million due to nonaccrual loans.
- Nonperforming assets to total assets rose to 0.56% from 0.43% linked quarter.
- Adjusted pre-tax, pre-provision income was $84.6 million, up 7.5% linked quarter.
- Net interest margin (FTE) was 3.38%, an increase of 3 basis points linked quarter.
- Loan growth totaled $221.7 million, or 5.8% annualized, on a linked quarter basis.
- Repurchased 336,145 shares of common stock totaling $13.4 million in Q2.
Price Impact
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