First Merchants Corporation · NASDAQ:FRME
First Merchants — Q2 2026 Earnings Presentation
35 slides from First Merchants's earnings presentation, Jul 23, 2026
Slide 1: Investor Update Second Quarter 2026
Investor Update Second Quarter 2026
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can often, but not always, be identified by the use of words like “believe”, “continue
Slide 3: Executive Management Team
Executive Management Team Mark Hardwick FMB: Chief Executive Officer 28 Yrs Mark K. Hardwick currently serves as the Chief Executive Officer of First Merchants Corporation and First Merchants Bank. Mark joined First Merchants in November of 1997 as Corporate Controller and was promoted to Chief Fina
Slide 4: First Merchants Corporation (NASDAQ: FRME)
First Merchants Corporation (NASDAQ: FRME) Largest financial services holding company headquartered in Central Indiana Financial Highlights as of 6/30/20261 Reported Adjusted $21.3 Billion YTD ROAA 0.69% 1.06% Total Assets YTD Return on TCE 8.10% 12.23% $15.5 Billion TCE/TA 8.99% Total Loans Market
Slide 5: Second Quarter Highlights
Second Quarter Highlights Net Income & EPS1 ROA ROE & ROTCE (Annualized) (Annualized) $43.5 Million 0.83% ROA 6.44% ROE $0.70 Per Share 1.59% PTPP ROA2 9.80% ROTCE2 ▪ Reported EPS of $0.70 compared to $0.98 in 2Q25; excluding acquisition-related expenses ($3.8 million), adjusted EPS of $0.741,2 comp
Slide 6: Year to Date Highlights
Year to Date Highlights Reported Net Income & EPS1 Reported ROA Reported ROE & ROTCE (Annualized) (Annualized) $71.2 Million 0.69% ROA 5.32% ROE $1.15 Per Share 1.57% PTPP ROA2 8.10% ROTCE2 Adjusted Net Income & EPS1,2 Adjusted ROA2 Adjusted ROE & ROTCE2 (Annualized) (Annualized) $109.5 Million 1.06
Slide 7: Business Strategy
Business Strategy Our strategy is to build on our Midwestern strength – grow organically through more and deeper relationships enhanced through smarter use of technology and customer-centric products. Commercial Banking Consumer Banking Strategy: We deliver flexible solutions through a high-touch, S
Slide 8: Business Highlights - Loans
Business Highlights - Loans Michigan Monroe MSA Rank: 1 Loan Growth Summary1,2 Detroit MSA Rank: 11 2Q26 Balance ($B) Growth Deposits: $2.5B Northwest Indiana Loans: $2.8B Commercial 11.9 5.8% Lake County Rank: 5 Consumer 3.6 5.8% Lafayette MSA Rank: 2 Deposits: $3.3B Total Loan Growth QTD 5.8% Loan
Slide 9: Business Highlights - Deposits
Business Highlights - Deposits Michigan Monroe MSA Rank: 1 Detroit MSA Rank: 11 Deposit Growth Summary1 Deposits: $2.5B 2Q26 Balance ($B) Growth Northwest Indiana Loans: $2.8B Lake County Rank: 5 Commercial 8.7 35.6% Lafayette MSA Rank: 2 Consumer 6.5 -12.5% Deposits: $3.3B Loans: $2.2B Total Deposi
Slide 10: Second Quarter Financial Results
Second Quarter Financial Results ($M except per share data) For the Three Months Ended, Variance % Variance Linked Linked QTR- 6/30/25 9/30/25 12/31/25 3/31/26 6/30/26 Quarter Annualized Balance Sheet & Asset Quality 2Q26 Highlights 1. Total Assets $18,592.8 $18,811.6 $19,025.1 $21,072.5 $21,348.8 $
Slide 11: Year to Date Financial Results
Year to Date Financial Results ($M except per share data) For the Six Months Ended June 30, Variance % Variance 2024 2025 2026 YOY YOY Balance Sheet & Asset Quality Year to Date Highlights 1. Total Assets $18,303.4 $18,592.8 $21,348.8 $2,756.0 14.8% 2. Total Loans 12,671.9 13,325.5 15,530.7 2,205.2
Slide 12: Investment Portfolio Highlights
Investment Portfolio Highlights 2Q26 Investment Portfolio Composition Yield on Investments (%) / Total Investments ($B) Corporate Obligations U.S. Agencies 2% 11% Collateralized 2.67% 2.66% 2.64% 2.63% 2.63% Mortgage Obligations 5% $3.3B $3.4 $3.4 $3.4 $3.3 $3.3 Municipal Mortgage- Total Bonds 2Q25
Slide 13: Loan Portfolio Highlights
Loan Portfolio Highlights 2Q26 Loan Composition Highlights Construction Land & Land Development 5.6% Agricultural Land & Commercial Real Estate Production 2.1% ▪ Portfolio composition is ~77% Commercial oriented Non-Owner Occupied Public Finance/Other 21.1% Commercial 8.6% ▪ Total loan yield of 6.11
Slide 14: Allowance for Credit Losses - Loans
Allowance for Credit Losses - Loans 2Q26 Allowance for Credit Losses – Loans ($M) Highlights ▪ $33.0 million Q2 Provision; includes $29.7 million of specific reserves for two commercial credits 1.47% 1.43% 1.42% 1.39% 1.56% ▪ The reserve for unfunded commitments totals $18.5 million and is recorded
Slide 15: Deposit Portfolio Highlights
Deposit Portfolio Highlights 2Q26 Deposit Composition Highlights Brokered Certificates of Deposit 1 ▪ Strong core deposit base 3% Certificates & Time Deposits < $100k • 91% core deposits2 4% • 23% noninterest bearing Certificates & Time Deposits > $100k 6% ▪ Insured 70.5% / Uninsured 29.5% $16.8B De
Slide 16: Net Interest Margin
Net Interest Margin 2Q25 3Q25 4Q25 1Q26 2Q26 1. Net Interest Income - FTE ($millions) $ 139.2 $ 139.9 $ 145.3 $ 157.7 $ 165.3 2. Fair Value Accretion $ 1.0 $ 0.9 $ 1.0 $ 2.8 $ 3.7 3. Adjusted Net Interest Income - FTE1 $ 138.2 $ 139.0 $ 144.3 $ 154.9 $ 161.6 4. Tax Equivalent Yield on Earning Assets
Slide 17: Noninterest Income Highlights
Noninterest Income Highlights 2Q26 Noninterest Income Detail ($M) Noninterest Income Trends1 Fee Income / Revenue Service Charges $9.4 25% 18.7% 18.9% 19.1% 18.4% 18.4% Card Payment Fees 1Excludes $29.8 million net loss on mortgage loans reclassified to held for sale in 1Q26 $5.5 Gain on Sale of Loa
Slide 18: Noninterest Expense Highlights
Noninterest Expense Highlights 2Q26 Noninterest Expense Detail Noninterest Expense Trends ($M) Efficiency Ratio 74.45% Net Occupancy & Equipment Outside Data Processing $16.8 $8.0 15% 7% 53.99% 55.09% 54.65%1 55.11% Professional & Other Outside Services $5.0 54.56%1 54.52% 54.21%1 4% 53.22%1 Intangi
Slide 19: Capital Ratios
Capital Ratios Tangible Common Equity Ratio Highlights 9.38% ▪ Repurchased 336,145 shares totaling $13.4 million 8.92% 9.18% 9.00% 8.99% during the quarter 9.57% 9.31% 9.31% ▪ Repurchased 976,631 shares totaling $38.3 million 9.65% year to date 9.31% 9.31% 9.57% 9.65% 9.57% 2Q25 3Q25 4Q25 1Q26 2Q26
Slide 20: Loan Portfolio Insights
Loan Portfolio Insights Commercial C&I CRE CRE & Construction to Total Loans: $15.5B C&I includes commercial and Total Loans industrial, sponsor and owner- occupied real estate loans ▪ Line utilization 49.7% from 51.0% 1Q26 ▪ Shared National Credits: • $1.1 billion to 92 borrowers, $11.5 million ave
Slide 21: Asset Quality
Asset Quality Asset Quality Trends ($M) 2Q26 Highlights 2Q25 3Q25 4Q25 1Q26 2Q26 Asset Quality: 1. Non-Accrual Loans $ 67.4 $ 65.7 $ 71.8 $ 89.6 $ 118.2 ▪ Impacted by two new non-accruals: 2. Other Real Estate 0.2 1.3 0.7 1.3 1.6 • $28.1 million – Authorized Wireless 3. 90PD Loans 4.4 1.9 2.0 4.0 9.
Slide 22: Nonperforming Assets
Nonperforming Assets Nonperforming Assets Roll Forward ($M) 2Q26 Highlights 2Q25 3Q25 4Q25 1Q26 2Q26 Nonperforming Migration: 1. Beginning Balance NPAs + 90PD $ 91.2 $ 72.0 $ 68.9 $ 74.5 $ 94.9 Non-Accrual ▪ New non-accruals primarily driven by 2. Add: New Non-Accruals 21.9 15.5 22.8 46.1 53.6 two a
Slide 23: Track Record of Shareholder Value
Track Record of Shareholder Value Tangible Book Value per Share1 Diluted Earnings per Share1 $32.49 $31.98 CAGR 2015-2025: 8.5% CAGR 2015-2025: 7.5% $30.02 Adjusted CAGR1 8.5% $27.98 $22.64 $24.09 $25.42 $21.24 $3.81 $3.81 $3.73 $3.88 $19.24 $3.41 $3.22 $3.19 $15.83 $16.78 $2.74 $14.38 $1.98 $2.12 $
Slide 24: History of Organic and Whole Bank Acquisition Growth
History of Organic and Whole Bank Acquisition Growth Total Assets ($B) Growth Through Acquisition ✓ Experienced Acquirer ✓ Expanded in Current High-Growth Markets $21.3 ✓ Added to Franchise with Stable Deposit Gathering Markets $19.0 $17.9 $18.3 $18.3 $15.5 $14.1 $12.5 $9.9 $9.4 $6.8 $7.2 2015 2016
Slide 25: Vision for the Future
Vision for the Future Vision: To enhance the financial wellness of the diverse communities we serve. To be the most attentive, knowledgeable, and high-performing bank for our clients, Mission: teammates, and shareholders. Our strategy is to build on our Midwestern strength—growing organically throug
Slide 26: Appendix
APPENDIX io First Merchants,
Slide 27: Loan Portfolio
Loan Portfolio Loan Portfolio Trends ($M) Year End Trends 2Q25 3Q25 4Q25 1Q26 2Q26 2023 2024 2025 1. C&I - Regional Banking $ 3,574 $ 3,694 $ 3,837 $ 4,046 $ 4,112 $ 2,876 $ 3,349 $ 3,837 2. C&I - Sponsor Finance 867 911 898 832 845 795 766 898 3. CRE Owner Occupied 1,227 1,232 1,237 1,335 1,369 1,1
Slide 28: Non-GAAP: Adjusted Net Income and Diluted EPS
Non-GAAP ADJUSTED NET INCOME AND DILUTED EARNINGS PER COMMON SHARE 2Q25 3Q25 4Q25 1Q26 2Q26 6/30/24 YTD 6/30/25 YTD 6/30/26 YTD (Dollars and Shares Outstanding in Thousands, Except Per Share Amounts) Net Income Available to Common Stockholders (GAAP) $ 56,363 $ 56,297 $ 56,596 $ 27,687 $ 43,511 $ 86
Slide 29: Non-GAAP: Pre-Tax, Pre-Provision Earnings
Non-GAAP PRE-TAX, PRE-PROVISION ("PTPP") EARNINGS, AS ADJUSTED 2Q25 3Q25 4Q25 1Q26 2Q26 6/30/24 YTD 6/30/25 YTD 6/30/26 YTD (Dollars in Thousands, Except Per Share Amounts) Net Interest Income (GAAP) $ 133,014 $ 133,665 $ 139,064 $ 151,303 $ 158,941 $ 255,634 $ 263,284 $ 310,244 Noninterest Income (
Slide 30: Non-GAAP: Net Interest Margin, Adjusted
Non-GAAP NET INTEREST MARGIN ("NIM"), ADJUSTED 2Q25 3Q25 4Q25 1Q26 2Q26 6/30/24 YTD 6/30/25 YTD 6/30/26 YTD (Dollars in Thousands) Net Interest Income (GAAP) $ 133,014 $ 133,665 $ 139,064 $ 151,303 $ 158,941 $ 255,634 $ 263,284 $ 310,244 Fully Taxable Equivalent ("FTE") Adjustment 6,199 6,209 6,185
Slide 31: Non-GAAP: Efficiency Ratio
Non-GAAP EFFICIENCY RATIO 2Q25 3Q25 4Q25 1Q26 2Q26 6/30/24 YTD 6/30/25 YTD 6/30/26 YTD (Dollars in Thousands) Noninterest Expense (GAAP) $ 93,598 $ 96,561 $ 99,522 $ 125,145 $ 115,347 $ 188,348 186,500 240,492 Less: Intangible Asset Amortization (1,505) (1,499) (1,498) (2,302) (2,706) (3,728) (3,031
Slide 32: Non-GAAP: Total Risk-Based Capital Ratio
Non-GAAP 2Q24 2Q25 3Q25 4Q25 1Q26 2Q26 Total Risk-Based Capital Ratio (dollars in thousands) Total Stockholders' Equity (GAAP) 2,212,525 2,347,952 2,412,402 2,466,667 2,672,565 2,697,177 1 Adjust for Accumulated Other Comprehensive Loss 211,979 189,975 155,864 130,135 148,861 133,593 Less: Preferred
Slide 33: Non-GAAP: Tangible Common Equity Ratio
Non-GAAP TANGIBLE COMMON EQUITY RATIO 2Q24 2Q25 3Q25 4Q25 1Q26 2Q26 Tangible Common Equity Ratio (dollars in thousands) Total Stockholders' Equity (GAAP) $ 2,212,525 $ 2,347,952 $ 2,412,402 $ 2,466,667 $ 2,672,565 $ 2,697,177 Less: Preferred Stock (25,125) (25,125) (25,125) (25,125) (25,125) (25,125
Slide 34: Non-GAAP: Return on Tangible Common Equity
Non-GAAP RETURN ON TANGIBLE COMMON EQUITY 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 YTD Return on Tangible Common Equity (dollars in thousands) Total Average Stockholders' Equity (GAAP) $ 753,724 $ 884,664 $ 1,110,524 $ 1,343,861 $ 1,569,615 $ 1,825,135 $ 1,866,632 $ 1,972,445 $ 2,127,262 $
Slide 35: Non-GAAP: Adjusted Returns on Assets, Equity and TCE
Non-GAAP ADJUSTED RETURNS ON AVERAGE ASSETS, AVERAGE STOCKHOLDERS' EQUITY, AND TANGIBLE COMMON EQUITY 1Q26 2Q26 6/30/26 YTD Return on Average Assets (GAAP) Reported (GAAP) 0.55% 0.83% 0.69% Effect of net loss on mortgage loans reclassified to held for sale 0.59% 0.00% 0.29% Effect of acquisition-rel