First Merchants earnings increased in the third quarter of 2026, with net income available to common shareholders reaching $67.8 million as lending, deposits and net interest margin expanded. Diluted earnings per share rose to $1.09 from $0.98 a year earlier.
Key Takeaways
- Quarterly net income rose from $56.3 million a year earlier, while net interest margin increased to 3.44%.
- Loans reached $15.6 billion and deposits totaled $16.9 billion, with both balances also growing from the preceding quarter.
- Reported EPS of $1.09 exceeded the $1.04 analyst estimate.
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First Merchants earnings improve
The quarterly results showed higher profit alongside a wider lending margin. Net interest margin increased to 3.44% from 3.24% in the third quarter of 2025, a gain of 20 basis points.
Chief Executive Mark Hardwick highlighted the approximately 11% year-over-year increase in diluted EPS and said the company continued returning capital through dividends and share repurchases. Year-to-date profit remained below the prior-year level.
Deposits outpace lending growth during the quarter
Deposits increased by $175.6 million from the preceding quarter, while loans grew by $70.2 million. The loan-to-deposit ratio remained stable at 92.2%.
Compared with a year earlier, loans increased from $13.6 billion to $15.6 billion and deposits rose from $14.9 billion to $16.9 billion. Total assets reached $21.1 billion, up from $18.8 billion.
Nonperforming assets remained stable at 0.57%, while the Common Equity Tier 1 capital ratio stood at 11.22%. First Merchants is based in Muncie, Indiana, and operates primarily through First Merchants Bank, serving customers across several Midwestern states.
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