First Merchants Corporation · NASDAQ:FRME
First Merchants — Q1 2026 Earnings Presentation
33 slides from First Merchants's earnings presentation, Apr 23, 2026
Slide 1: Investor Update First Quarter 2026
Investor Update First 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 3/31/20261 Reported Adjusted $21.1 Billion YTD ROAA 0.55% 1.25% Total Assets YTD Return on TCE 6.39% 14.07% $15.3 Billion TCE/TA 9.00% Total Loans Market
Slide 5: First Quarter Highlights
First Quarter Highlights Reported Net Income & EPS1 Reported ROA Reported ROE & ROTCE (Annualized) (Annualized) $27.7 Million 0.55% ROA 4.17% ROE $0.45 Per Share 6.39% ROTCE2 Adjusted Net Income & EPS1,2 Adjusted ROA2 Adjusted ROE & ROTCE2 (Annualized) (Annualized) $63.1 Million 1.25% ROA 9.51% ROE
Slide 6: Business Strategy
Business Strategy Our strategy is to build on our Midwestern strength – grow organically through more and deeper relationships enhanced through smarter use of technology and customer-centric products. Commercial Banking Consumer Banking Strategy: We deliver flexible solutions through a high-touch, S
Slide 7: Business Highlights - Loans
Business Highlights - Loans Michigan Monroe MSA Rank: 1 Loan Growth Summary1,2 Detroit MSA Rank: 11 1Q26 Balance ($M) QTD Change Deposits: $2.6B Northwest Indiana Loans: $2.8B Commercial $ 10,551.3 $ (33.3) Lake County Rank: 5 Consumer $ 2,831.6 $ (18.6) Lafayette MSA Rank: 2 Deposits: $2.9B First S
Slide 8: Business Highlights - Deposits
Business Highlights - Deposits Michigan Monroe MSA Rank: 1 Detroit MSA Rank: 11 Deposit Growth Summary1 Deposits: $2.6B 1Q26 Balance ($M) QTD Change Northwest Indiana Loans: $2.8B Lake County Rank: 5 Commercial $ 7,234.3 $ (212.8) Lafayette MSA Rank: 2 Consumer $ 5,985.5 $ 22.4 Deposits: $2.9B Loans
Slide 9: First Quarter Financial Results
First Quarter Financial Results ($M except per share data) For the Three Months Ended, Variance % Variance Linked Linked QTR- 3/31/25 6/30/25 9/30/25 12/31/25 3/31/26 Quarter Annualized Balance Sheet & Asset Quality 1Q26 Highlights 1. Total Assets $18,439.8 $18,592.8 $18,811.6 $19,025.1 $21,072.5 $2
Slide 10: Investment Portfolio Highlights
Investment Portfolio Highlights 1Q26 Investment Portfolio Composition Yield on Investments (%) / Total Investments ($B) Corporate Obligations U.S. Agencies 2% 11% Collateralized Mortgage 2.63% 2.64% 2.67% 2.63% 2.63% Obligations 5% $3.3B $3.4 $3.4 $3.4 $3.4 $3.3 Municipal Mortgage- Total Bonds Backe
Slide 11: Loan Portfolio Highlights
Loan Portfolio Highlights 1Q26 Loan Composition Highlights Construction Land & Land Development 5.9% Agricultural Land & Commercial Real Estate Production 2.0% ▪ Portfolio composition is ~77% Commercial oriented Non-Owner Occupied Public Finance/Other 20.9% Commercial 9.0% ▪ Total loan yield of 6.09
Slide 12: Allowance for Credit Losses - Loans
Allowance for Credit Losses - Loans 1Q26 Allowance for Credit Losses - Loans Highlights ▪ $4.9 million Q1 Provision ▪ A $22.3 million credit discount for First Savings was 1.47% 1.47% 1.43% 1.42% 1.39% recorded through ACL ▪ The reserve for unfunded commitments totals $192.0 $195.3 $194.5 $195.6 $21
Slide 13: Deposit Portfolio Highlights
Deposit Portfolio Highlights 1Q26 Deposit Composition Highlights ▪ Strong core deposit base Certificates & Time Brokered Certificates of Deposits 1 • 90% core deposits2 Deposits < $100k 4% Certificates & Time 4% • 23% noninterest bearing Deposits > $100k 6% ▪ Insured 71.4% / Uninsured 28.6% $16.5B D
Slide 14: Net Interest Margin
Net Interest Margin 1Q25 2Q25 3Q25 4Q25 1Q26 1. Net Interest Income - FTE ($millions) $ 136.4 $ 139.2 $ 139.9 $ 145.3 $ 157.7 2. Fair Value Accretion $ 1.1 $ 1.0 $ 0.9 $ 1.0 $ 2.8 3. Adjusted Net Interest Income - FTE1 $ 135.3 $ 138.2 $ 139.0 $ 144.3 $ 154.9 4. Tax Equivalent Yield on Earning Assets
Slide 15: Noninterest Income Highlights
Noninterest Income Highlights 1Q26 Noninterest Income Detail ($M)1 Noninterest Income Trends1 Fee Income / Revenue Service Charges $9.0 18.7% 18.9% 19.1% 18.4% 25% 17.6% Card Payment Fees Gain on $5.3 Sale of Loans $35.6M 1 15% Derivative $6.5 Hedge Fees Customer-Related Fees ($M) 18% Total $0.6 2%
Slide 16: Noninterest Expense Highlights
Noninterest Expense Highlights 1Q26 Noninterest Expense Detail Noninterest Expense Trends ($M) Efficiency Ratio 74.45% Net Occupancy & Outside Data Processing Equipment $7.2 $16.1 6% 54.65%1 54.54% 53.99% 55.09% 13% Professional & Other Outside Services $14.6 12% 54.56%1 54.52% 54.21%1 Salary & Bene
Slide 17: Capital Ratios
Capital Ratios Tangible Common Equity Ratio Highlights 9.18% 9.38% 9.00% ▪ Repurchased 640,486 shares totaling $24.9 million 8.90% 8.92% through March 31, 2026 9.57% ▪ 708,856 shares totaling $27.6 million 9.31% 9.31% repurchased year to date through April 9.65% 9.31% 9.31% 9.57% 9.65% 9.57% 1Q25 2Q
Slide 18: Loan Portfolio Insights
Loan Portfolio Insights Commercial C&I CRE CRE & Construction to Total Loans: Total Loans $15.3 C&I includes commercial and Billion industrial, sponsor and owner- occupied real estate loans ▪ Line utilization 51% from 49.8% 4Q25 ▪ Shared National Credits: • $1.0 billion to 90 borrowers, $11.4 millio
Slide 19: Asset Quality
Asset Quality Asset Quality Trends ($M) 1Q26 Highlights Excl. First First 1Q25 2Q25 3Q25 4Q25 Savings Savings1 1Q26 Asset Quality: 1. Non-Accrual Loans $ 81.9 $ 67.4 $ 65.7 $ 71.8 $ 69.1 $ 20.5 $ 89.6 ▪ Stable Asset Quality 2. Other Real Estate 5.0 0.2 1.3 0.7 0.5 0.8 1.3 ▪ Largest Non-Accruals: 3.
Slide 20: Nonperforming Assets
Nonperforming Assets Nonperforming Assets Roll Forward ($M) 1Q26 Highlights Excl. First First 1Q25 2Q25 3Q25 4Q25 Savings Savings1 1Q26 Nonperforming 1. Beginning Balance NPAs + 90PD $ 84.6 $ 91.2 $ 72.0 $ 68.9 $ 74.5 $ 74.5 Migration: Non-Accrual ▪ Payoff of $12.9 million – 2. Add: New Non-Accruals
Slide 21: Track Record of Shareholder Value
Track Record of Shareholder Value Tangible Book Value per Share1 Diluted Earnings per Share1 $32.49 $31.75 CAGR 2015-2025: 8.5% CAGR 2015-2025: 7.5% $30.02 Adjusted CAGR1 8.5% $27.98 $22.64 $24.09 $25.42 $3.81 $3.81 $3.73 $3.88 $21.24 $19.24 $3.41 $3.22 $3.19 $15.83 $16.78 $2.74 $14.38 $1.98 $2.12 $
Slide 22: 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 $21.1 ✓ 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 $7.2 2015 2016
Slide 23: Vision for the Future
Vision for the Future Vision: To enhance the financial wellness of the diverse communities we serve To be the most attentive, knowledgeable, and high-performing bank for our clients, Mission: teammates, and shareholders. Our strategy is to build on our Midwestern strength—growing organically through
Slide 24: Appendix
APPENDIX io First Merchants,
Slide 25: Loan Portfolio
Loan Portfolio Loan Portfolio Trends ($M) Year End Trends 1Q25 2Q25 3Q25 4Q25 1Q26 2023 2024 2025 1. C&I - Regional Banking $ 3,482 $ 3,574 $ 3,694 $ 3,837 $ 4,046 $ 2,876 $ 3,349 $ 3,837 2. C&I - Sponsor Finance 824 867 911 898 832 795 766 898 3. CRE Owner Occupied 1,215 1,227 1,232 1,237 1,335 1,1
Slide 26: Non-GAAP
Non-GAAP ADJUSTED NET INCOME AND DILUTED EARNINGS PER COMMON SHARE 1Q25 2Q25 3Q25 4Q25 1Q26 (Dollars and Shares Outstanding in Thousands, Except Per Share Amounts) Net Income Available to Common Stockholders (GAAP) $ 54,870 $ 56,363 $ 56,297 $ 56,596 $ 27,687 Adjustments: Net realized losses on sale
Slide 27: Non-GAAP
Non-GAAP PRE-TAX, PRE-PROVISION ("PTPP") EARNINGS, AS ADJUSTED 1Q25 2Q25 3Q25 4Q25 1Q26 (Dollars in Thousands, Except Per Share Amounts) Net Interest Income (GAAP) $ 130,270 $ 133,014 $ 133,665 $ 139,064 $ 151,303 Other Income (GAAP) 30,047 31,303 32,477 33,106 5,829 Total Revenue 160,317 164,317 16
Slide 28: Non-GAAP
Non-GAAP NET INTEREST MARGIN ("NIM"), ADJUSTED 1Q25 2Q25 3Q25 4Q25 1Q26 (Dollars in Thousands) Net Interest Income (GAAP) $ 130,270 $ 133,014 $ 133,665 $ 139,064 $ 151,303 Fully Taxable Equivalent ("FTE") Adjustment 6,127 6,199 6,209 6,185 6,394 Net Interest Income (FTE) (non-GAAP) 136,397 139,213 1
Slide 29: Non-GAAP
Non-GAAP EFFICIENCY RATIO 1Q25 2Q25 3Q25 4Q25 1Q26 (Dollars in Thousands) Noninterest Expense (GAAP) $ 92,902 $ 93,598 $ 96,561 $ 99,522 $ 125,145 Less: Intangible Asset Amortization (1,526) (1,505) (1,499) (1,498) (2,302) Less: OREO and Foreclosure Expenses (600) (29) (121) (775) (1,100) Adjusted N
Slide 30: Non-GAAP
Non-GAAP CAPITAL RATIOS 1Q25 2Q25 3Q25 4Q25 1Q26 Total Risk-Based Capital Ratio (dollars in thousands) Total Stockholders' Equity (GAAP) 2,332,214 2,347,952 2,412,402 2,466,667 2,672,565 Adjust for Accumulated Other Comprehensive Loss 1 190,311 189,975 155,864 130,135 148,861 Less: Preferred Stock (
Slide 31: Non-GAAP
Non-GAAP TANGIBLE COMMON EQUITY RATIO 1Q25 2Q25 3Q25 4Q25 1Q26 Tangible Common Equity Ratio (dollars in thousands) Total Stockholders' Equity (GAAP) $ 2,332,214 $ 2,347,952 $ 2,412,402 $ 2,466,667 $ 2,672,565 Less: Preferred Stock (25,125) (25,125) (25,125) (25,125) (25,125) Less: Intangible Assets
Slide 32: Non-GAAP
Non-GAAP RETURN ON TANGIBLE COMMON EQUITY 2015 2016 2017 2018 2019 2020 2021 2022 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 Less: Average Preferred Stoc
Slide 33: Non-GAAP
Non-GAAP ADJUSTED RETURNS ON AVERAGE ASSETS, AVERAGE STOCKHOLDERS' EQUITY, AND TANGIBLE COMMON EQUITY 1Q26 Return on Average Assets (GAAP) Reported (GAAP) 0.55% Effect of net loss on mortgage loans reclassified to held for sale 0.59% Effect of acquisition-related expenses 0.33% Effect of tax on adju