First Merchants Corporation · NASDAQ:FRME
First Merchants — Q3 2026 Earnings Presentation
34 slides from First Merchants's earnings presentation, Oct 21, 2026
Slide 1: Investor Update Third Quarter 2026
Investor Update Third 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 3 Mark Hardwick Chief Executive Officer 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 Financial Offi
Slide 4: First Merchants Corporation Financial Highlights
First Merchants Corporation (NASDAQ: FRME) Financial Highlights as of 9/30/20261 $21.1 Billion $15.6 Billion $16.9 Billion $7.1 Billion Assets Under Advisement2 Total Assets Total Loans Total Deposits TCE/TA3 YTD Return on TCE3 YTD ROAA Dividend Yield Price / Tangible Book3 Price / LTM EPS 0.90% 8.8
Slide 5: Third Quarter Highlights
Third Quarter Highlights 5 ▪ Reported EPS of $1.09 compared to $0.98 in 3Q25 ▪ Strong adjusted PTPP earnings of $83.7 million, with adjusted PTPP ROA of 1.59% and adjusted PTPP ROE of 12.42%2 ▪ Organic loan growth of $70.2 million, or 1.8% annualized ▪ Organic deposit growth of $175.6 million, or 4.
Slide 6: Year to Date Highlights
Year to Date Highlights 6 6.91% ROE 10.43% ROTCE2 Reported ROE & ROTCE (Annualized) $139.0 Million $2.24 Per Share Reported Net Income & EPS1 0.90% ROA 1.57% Adjusted PTPP ROA2 Reported ROA (Annualized) ▪ Reported EPS of $2.24 compared to $2.90 in prior year; excluding acquisition-related expenses (
Slide 7: Business Strategy
Business Strategy 7 Commercial Banking Private Wealth Advisors Consumer Banking Mortgage Banking Strategy: Advantages: We deliver flexible solutions through a high-touch, client-centric banking model supported by experienced teams and accessible leadership, focusing on in- footprint relationships wi
Slide 8: Loan Growth Summary
Loan Growth Summary1,2 Business Highlights - Loans 8 MSA and County ranking data per FDIC 1Commercial includes Public Finance, Consumer includes Private Wealth and Mortgage. Growth annualized. 2Growth excluding loans acquired from First Savings and the mortgage loan sale 3Southern Indiana includes I
Slide 9: Deposit Growth Summary
Deposit Growth Summary1 Business Highlights - Deposits 9 MSA and County ranking data per FDIC 1Commercial includes Public Funds deposits and Consumer includes Private Wealth and Mortgage. Growth annualized. 2Growth excludes deposits acquired from First Savings 3Southern Indiana includes Indiana coun
Slide 10: Third Quarter Financial Results
Third Quarter Financial Results 10 ▪ Net interest income increased $2.1 million, or 1.3%, benefiting from higher earning asset income ▪ Net interest margin - FTE of 3.44% increased 6 basis points over prior quarter ▪ Noninterest income increased $0.8 million, or 2.2% ▪ Noninterest expense increased
Slide 11: Year to Date Financial Results
Year to Date Financial Results 11 ▪ YTD results include First Savings operations since close on February 1 with system integration mid-May ▪ 53.85% Adjusted Efficiency Ratio1 ▪ Net interest income increased $74.3 million benefiting from growth and lower funding costs ▪ Net interest margin of 3.39% w
Slide 12: Investment Portfolio Highlights
▪ Net unrealized AFS loss of $290.7 million ($171.3 M prior Q) ▪ Net unrealized HTM loss of $377.7 million ($254.0 M prior Q) Investment Portfolio Highlights 12 3Q26 Investment Portfolio Composition Yield on Investments (%) / Total Investments ($B) $3.1B Total Investment Portfolio Gains / LossesHigh
Slide 13: Loan Portfolio Highlights
Fixed Rate 31% Prime-Based 11% Other Variable Rates 12% SOFR-Based 46% Loan Portfolio Highlights 13 3Q26 Loan Composition Yield on Loans (%) / Total Loans ($B) $15.6B Total 3Q26 Portfolio by Yield Type Highlights Total loan rate mix as of 3Q26 • $10.9 billion variable rate • $4.7 billion fixed rate
Slide 14: Allowance for Credit Losses - Loans
$192,757 $195,597 $215,526 $21,250 $22,279 $41,200 $18,410 $43,550 ACL - Loans 12/31/2024 Net Charge- offs 2025 Provision 2025 ACL - Loans 12/31/2025 First Savings Credit Discount Net Charge- offs 2026 YTD Provision 2026 YTD ACL - Loans 9/30/2026 Increase Decrease Allowance for Credit Losses - Loans
Slide 15: Deposit Portfolio Highlights
Deposit Portfolio Highlights 15 3Q26 Deposit Composition Highlights $16.9B Total 1Total brokered deposits of $1.4 billion, which includes brokered CDs of $409.8 million as of September 30, 2026 2Defined as total deposits less time deposits > $100k Cost of Total Deposits (%) / Total Deposits ($B) ▪ S
Slide 16: Net Interest Margin
Net Interest Margin 16 $105.1$97.1 $97.3 $105.1 $107.0$97.8 $107.0 $97.3 $105.1 $110.0$109.2 $107.0 $105.1 $109.2 $110.0 $106.9 1See "Non-GAAP Financial Information" for reconciliation 2Adjusted for Fair Value Accretion $139.9 $145.3 $157.7 $165.3 $167.3 3.24% 3.29% 3.35% 3.38% 3.44% 3Q25 4Q25 1Q26
Slide 17: Noninterest Income Highlights
Noninterest Income Highlights 17 3Q26 Noninterest Income Detail ($M) $38.0M Total Noninterest Income Trends1 Fee Income / Revenue Highlights ▪ Noninterest income increased $0.8 million compared to the prior quarter. ▪ Customer-related fees remained consistent with prior quarter Customer-Related Fees
Slide 18: Noninterest Expense Highlights
$57.3 $58.3 $69.4 $65.8 $66.3 $14.1 $14.9 $16.1 $16.8 $16.9 $7.0 $7.5 $7.2 $8.0 $7.9 $18.2 $18.8 $32.4 $24.7 $25.2 $96.6M $99.5M $125.1M $115.3M $116.3M 3Q25 4Q25 1Q26 2Q26 3Q26 Salary & Benefits Net Occupancy & Equipment Outside Data Processing Other 55.09% 54.52% 74.45% 55.11% 54.55% Salary & Bene
Slide 19: Capital Ratios
Capital Ratios 19 Tangible Common Equity Ratio1 Common Equity Tier 1 Ratio Total Risk-Based Capital Ratio 9.31% 9.31% 9.57% 9.31% 9.65%9.57%9.31% 9.57% 9.65% ▪ Repurchased 287,431 shares totaling $12.0 million during the quarter ▪ Repurchased 1,264,062 shares totaling $50.3 million year to date ▪ Co
Slide 20: Loan Portfolio Insights
▪ Largest CRE Property Type is Retail $983.2 million ▪ Construction Finance: ▪ $788.6 million CRE Construction1 ▪ $170.9 million Resi. Real Estate Construction ▪ CRE concentration levels leave capacity for growth opportunities: Total Construction: 41.9% / 100%2 Total CRE: 182.0% / 300%2 C&I includes
Slide 21: Asset Quality
Asset Quality 21 Asset Quality Trends ($M) 3Q26 Highlights Asset Quality: ▪ Largest new Non-accruals: • Parts Distributor1 $18.4 million • Digital Marketing1 $4.3 million 1Specific Reserves for new non-accruals recognized in prior quarters. ▪ Largest Charge-offs: • Authorized Wireless $18.5 million
Slide 22: Nonperforming Assets
Nonperforming Assets 22 Nonperforming Assets Roll Forward ($M) 3Q26 Highlights Nonperforming Migration: • Net nonperforming asset migration was flat • Charge-offs linked to loss content of last quarter’s non-accruals 3Q25 4Q25 1Q26 2Q26 3Q26 1. Beginning Balance NPAs + 90PD 72.0$ 68.9$ 74.5$ 94.9$ 1
Slide 23: Track Record of Shareholder Value
$1.72 $1.98 $2.12 $3.22 $3.19 $2.74 $3.81 $3.81 $3.73 $3.41 $3.88 $2.24 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 YTD'26 12.47% 13.26% 13.29% 18.77% 15.81% 12.21% 16.17% 18.12% 16.76% 13.71% 14.08% 10.43% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 YTD'26 $14.68 $15.85 $16.96
Slide 24: History of Organic and Whole Bank Acquisition Growth
History of Organic and Whole Bank Acquisition Growth 24 Total Assets ($B) Growth Through Acquisition ✓ Experienced Acquirer ✓ Expanded in Current High-Growth Markets ✓ Added to Franchise with Stable Deposit Gathering Markets 2015 Cooper State Bank Ameriana Bank 2017 Arlington Bank iAB Financial Bank
Slide 25: Vision for the Future
Vision for the Future 25 Mission: To be the most attentive, knowledgeable, and high-performing bank for our clients, teammates, and shareholders. Strategic Imperatives Vision: To enhance the financial wellness of the diverse communities we serve. PEOPLE CLIENTS PRODUCTS TECHNOLOGY Businesses Sharpen
Slide 26: Appendix
APPENDIX oo First Merchants,
Slide 27: Loan Portfolio
Loan Portfolio 27 Loan Portfolio Trends ($M) Year End Trends 3Q25 4Q25 1Q26 2Q26 3Q26 2023 2024 2025 1. C&I - Regional Banking 3,694$ 3,837$ 4,046$ 4,112$ 4,032$ 2,876$ 3,349$ 3,837$ 2. C&I - Sponsor Finance 911 898 832 845 811 795 766 898 3. CRE Owner Occupied 1,232 1,237 1,335 1,369 1,440 1,162 1,
Slide 28: Non-GAAP: Adjusted Net Income and Diluted EPS
Non-GAAP 28 1Non-core expenses in 3Q25 included $0.6 million of severance costs 2Non-core expenses in 4Q25 included a $0.7 million reduction in the FDIC special assessment 3Non-core expenses in 9/30/24 YTD includes $1.1 million from the FDIC special assessment and $2.4 million from the digital platf
Slide 29: Non-GAAP: Pre-Tax, Pre-Provision Earnings
Non-GAAP 29 1Non-core expenses in 3Q25 included $0.6 million of severance costs 2Non-core expenses in 4Q25 included a $0.7 million reduction in the FDIC special assessment 3Non-core expenses in 9/30/24 YTD includes $1.1 million from the FDIC special assessment and $2.4 million from the digital platf
Slide 30: Non-GAAP: Net Interest Spread and Margin
Non-GAAP 30 NET INTEREST SPREAD AND MARGIN (FTE ADJUSTED) 3Q25 4Q25 1Q26 2Q26 3Q26 9/30/24 YTD 9/30/25 YTD 9/30/26 YTD (Dollars in Thousands) Interest Income (GAAP) 235,095$ 237,444$ 248,569$ 260,839$ 263,947$ 713,364$ 687,348$ 773,355$ Fully Taxable Equivalent ("FTE") Adjustment 6,209 6,185 6,394 6
Slide 31: Non-GAAP: Efficiency Ratio
Non-GAAP 31 1Non-core expenses in 3Q25 included $0.6 million of severance costs 2Non-core expenses in 4Q25 included a $0.7 million reduction in the FDIC special assessment 3Non-core expenses in 9/30/24 YTD includes $1.1 million from the FDIC special assessment and $2.4 million from the digital platf
Slide 32: Non-GAAP: Tangible Common Equity Ratio
Non-GAAP 32 TANGIBLE COMMON EQUITY RATIO 3Q24 3Q25 4Q25 1Q26 2Q26 3Q26 Tangible Common Equity Ratio (dollars in thousands) Total Stockholders' Equity (GAAP) 2,302,373$ 2,412,402$ 2,466,667$ 2,672,565$ 2,697,177$ 2,636,381$ Less: Preferred Stock (25,125) (25,125) (25,125) (25,125) (25,125) (25,125) L
Slide 33: Non-GAAP: Return on Tangible Common Equity
Non-GAAP 33 RETURN ON TANGIBLE COMMON EQUITY 2015 2016 2017 2018 2019 2020 2021 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$ Less: Average Preferred Stock (125) (125) (125) (
Slide 34: Non-GAAP: Adjusted Returns on Assets, Equity and TCE
Non-GAAP 34 ADJUSTED RETURNS ON AVERAGE ASSETS, AVERAGE STOCKHOLDERS' EQUITY, AND TANGIBLE COMMON EQUITY 1Q26 2Q26 3Q26 9/30/26 YTD Return on Average Assets (GAAP) Reported (GAAP) 0.55% 0.83% 1.30% 0.90% Effect of net loss on mortgage loans reclassified to held for sale 0.59% 0.00% 0.00% 0.18% Effec