First Merchants Corporation has reported robust financial results for the third quarter of 2026, showcasing a significant increase in net income. The announcement comes alongside news of a planned leadership transition as current CEO Mark Hardwick prepares to retire at the end of the year.
On October 21, 2026, First Merchants Corporation issued a press release detailing its financial performance for the quarter ending September 30, 2026. The company reported net income available to common stockholders of $67.8 million, or $1.09 per diluted share, a notable increase from $43.5 million, or $0.70 per diluted share, in the previous quarter. This marks an increase from $56.3 million, or $0.98 per diluted share, in the same quarter last year.
First Merchants Corporation, a national commercial bank based in Muncie, Indiana, operates under the ticker symbols FRME and FRMEP on the Nasdaq exchange. The company has been recognized for its strong performance in the banking sector, which is classified under SIC code 6021.
The filing reveals that the adjusted pre-tax, pre-provision income for the quarter was $83.7 million, slightly down from $84.6 million in the prior quarter but up from $70.5 million in the third quarter of 2025. The net interest margin on a fully taxable equivalent basis rose to 3.44%, an increase of 6 basis points from the previous quarter and 20 basis points from the same quarter last year.
Additionally, First Merchants experienced loan growth of $70.2 million, or 1.8% on an annualized basis, and deposit growth of $175.6 million, or 4.2% annualized. The company also highlighted a strong capital position, with a Common Equity Tier 1 Capital Ratio of 11.22%.
In a significant move, First Merchants completed a $100 million subordinated debt issuance in late September. The company also repurchased 1,264,062 shares of common stock totaling $50.3 million year-to-date, including 287,431 shares totaling $12.0 million in the third quarter.
Mark Hardwick, who has served as CEO, expressed confidence in the bank's future as he prepares for retirement. He stated, "I have great confidence in Mike Stewart and our leadership team, and I believe First Merchants is well positioned for continued success as they build on our Midwestern strength, deepen our client relationships and continue helping the communities we serve prosper." Stewart, currently the President, is set to succeed Hardwick as CEO.
The filing does not specify what happens next regarding the transition, but the scheduled earnings conference call and webcast on October 22, 2026, will provide further insights into the company's direction under new leadership.