The beat was driven by NIM expansion and solid loan/deposit growth, while the $29.4M in charge-offs was anticipated from prior quarter disclosures. Watch the Q4 earnings call for commentary on credit normalization and the CEO transition impact on strategic direction.
Price Chart
Executive Summary
First Merchants reported Q3 2026 adjusted EPS of $1.10, beating consensus of $1.04 by 5.8%, with net interest margin expanding 20bp YoY to 3.44% and strong deposit growth of 4.2% annualized linked quarter. The quarter included $29.4M in net charge-offs from two previously identified commercial credits, but nonperforming assets remained stable at 0.57% of assets. The company also announced a planned CEO transition with President Mike Stewart succeeding Mark Hardwick at year-end 2026.
Key Financial Metrics
Key Facts
- Adjusted diluted EPS of $1.10 beat consensus of $1.04 by 5.8%
- Net interest margin (FTE) expanded 20bp YoY to 3.44%, up 6bp linked quarter
- Net income available to common stockholders of $67.8M vs $56.3M in Q3 2025 (+20.5%)
- Deposit growth of $175.6M or 4.2% annualized linked quarter
- Net charge-offs of $29.4M driven by two non-performing credits with reserves already established
- Completed $100M subordinated debt issuance in late September
- Repurchased 287,431 shares for $12.0M in Q3 2026
- CEO transition announced: President Mike Stewart to succeed Mark Hardwick at year-end 2026
Financial Impact
Adjusted EPS $1.10 vs $1.04 consensus (+5.8%); net income $67.8M vs $56.3M YoY (+20.5%); NIM expansion of 20bp YoY
Risk Factors
- Elevated net charge-offs of $29.4M (0.75% annualized) from two commercial credits, though reserves were already established
- Nonperforming assets to total assets ticked up to 0.57% from 0.36% a year ago
- Nine-month GAAP EPS of $2.24 is down 22.8% from $2.90 in the prior-year period due to Q1 mortgage loan sale loss and acquisition costs
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3385887 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 6d ago | 8-K | $40.83 $40.68 | ▼ −0.37% | ▲ +0.15% | $40.93 (+0.24%) |
Oct 21, 2026 6d ago | Press Release | $40.83 $40.68 | ▼ −0.37% | ▲ +0.15% | $40.93 (+0.24%) |
Oct 15, 2026 12d ago | 8-K | $39.48 $39.60 | ▲ +0.30% | ▲ +1.41% | $40.93 (+3.67%) |
Oct 15, 2026 12d ago | Press Release | $39.48 $39.60 | ▲ +0.30% | ▲ +1.41% | $40.93 (+3.67%) |
Oct 1, 2026 26d ago | 8-K | $39.58 $40.15 | ▲ +1.44% | ▲ +0.70% | $40.93 (+3.41%) |
Oct 1, 2026 26d ago | Press Release | $39.58 $40.15 | ▲ +1.44% | ▲ +0.70% | $40.93 (+3.41%) |
Sep 30, 2026 27d ago | Press Release | $39.78 | awaiting T+1 | — | $40.93 (+2.89%) |
Sep 25, 2026 4w ago | 8-K | $40.71 $40.37 | ▼ −0.84% | ▼ −0.09% | $40.93 (+0.54%) |
Sep 24, 2026 4w ago | 424B5 | $40.71 $40.37 | ▼ −0.84% | ▼ −0.09% | $40.93 (+0.54%) |
Sep 23, 2026 4w ago | Press Release | $40.49 $40.71 | ▲ +0.56% | ▲ +0.01% | $40.93 (+1.10%) |
US Market Status
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