First Merchants Corporation Announces Second Quarter 2026 Results

Rhea-AI Summary

First Merchants Corporation (NASDAQ: FRME) reported second quarter 2026 net income available to common stockholders of $43.5 million, or $0.70 per diluted share, versus $56.4 million, or $0.98, a year earlier and $27.7 million, or $0.45, in the first quarter of 2026. Adjusted diluted EPS was $0.74, compared to $1.03 in the prior quarter and $0.98 in the prior-year quarter. Net interest income rose to $158.9 million, with fully taxable equivalent net interest margin at 3.38%, up 3 basis points sequentially and 13 basis points year-over-year. Loans reached $15.5 billion after $268.8 million linked-quarter growth, including $221.7 million organic growth on a 5.8% annualized basis, while deposits increased to $16.8 billion, up $267.8 million sequentially. Provision for credit losses rose to $33.0 million as two commercial relationships totaling $41.8 million were placed on nonaccrual and associated reserves of $29.7 million were recorded. Capital remained strong with a common equity tier 1 ratio of 11.16%, and the company repurchased 976,631 common shares year-to-date for $38.3 million.

Positive

• Net interest income up 19.5% year-over-year to $158.9 million
• Net interest margin expanded to 3.38%, up 13 bps year-over-year
• Loan portfolio grew to $15.5 billion, up $2.2 billion year-over-year
• Deposits increased $2.0 billion year-over-year to $16.8 billion
• Common equity tier 1 ratio of 11.16% supports strong capital position
• Share repurchases of 976,631 shares for $38.3 million year-to-date

Negative

• Diluted EPS declined to $0.70 from $0.98 year-over-year
• Provision for credit losses increased to $33.0 million from $5.6 million
• Nonperforming assets ratio rose to 0.56% from 0.43% prior quarter
• Allowance for credit losses increased by $29.1 million to $241.6 million
• Noninterest expense increased $21.7 million year-over-year to $115.3 million

News Explained

The quarter’s material changes were a completed First Savings systems conversion and $29.7 million of reserves tied to two nonaccrual credits.

First Merchants reports that its First Savings systems conversion was completed in mid-May, making that disclosed integration milestone complete in the second-quarter report.

After quarter-end, information about conditions existing at June 30, 2026 led to two commercial relationships being placed on nonaccrual status and $29.7 million of associated reserves being recorded.

The two credits comprised a $28.1 million participation in a shared national credit and a $13.7 million credit to a commercial and residential roofing contractor, with outstanding balances totaling $41.8 million.

The company also completed the sale of $271.1 million of mortgage loans during the quarter and deployed the proceeds to fund loan growth and pay down high-cost funding.

Market reaction after 2Q26 earnings report: FRME -4.25% in the Jul 23 session

-4.25%

3 alerts

-4.25% Session close to close

-3.4% Trough Tracked

$2.77B Market Cap

1.0x Rel. Volume

In the Jul 23 session, FRME declined 4.25%, reflecting a moderate negative market reaction. Argus tracked a trough of -3.4% from its starting point during tracking. Our momentum scanner triggered 3 alerts that day, indicating moderate trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

-1.3% was the average move across five tag-specific FRME earnings events. That record places this an...

Analysis

-1.3% was the average move across five tag-specific FRME earnings events. That record places this announcement's stronger margin and loan growth alongside elevated provisions; recent insider activity also showed net selling, a separate risk factor to monitor.

Key Figures

Net income available to common stockholders: $43.5 million Diluted EPS: $0.70 Adjusted diluted EPS: $0.74 +5 more

8 metrics

Net income available to common stockholders $43.5 million Second quarter 2026, compared with $27.7 million in the prior quarter

Diluted EPS $0.70 Second quarter 2026, compared with $0.45 in the prior quarter

Adjusted diluted EPS $0.74 Second quarter 2026, compared with $1.03 in the prior quarter

Adjusted pre-tax, pre-provision income $84.6 million Second quarter 2026, compared with $78.7 million in the prior quarter

Net interest margin 3.38% Fully taxable equivalent basis, up 3 basis points from the prior quarter

Loan growth $221.7 million, or 5.8% annualized Linked quarter basis

Nonperforming assets to total assets 0.56% Second quarter 2026, compared with 0.43% in the prior quarter

Associated reserves $29.7 million Reserves recorded for two commercial lending relationships placed on nonaccrual status

Previous Earnings Reports

5 past events · Latest: Apr 22 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 22	First-quarter earnings	Positive	-1.7%	Reported Q1 results with acquisition growth, strong capital, and 0.43% nonperforming assets.
Jan 26	Fourth-quarter earnings	Positive	+0.5%	Reported record full-year results, share repurchases, and pending First Savings acquisition.
Oct 22	Third-quarter earnings	Positive	-0.5%	Reported higher earnings, loan growth, capital strength, and announced First Savings acquisition.
Jul 23	Second-quarter earnings	Positive	-3.7%	Reported higher earnings, loan and deposit growth, improved credit quality, and share repurchases.
Apr 24	First-quarter earnings	Positive	-1.1%	Reported higher earnings and loan growth alongside declining deposits and slightly higher nonperforming assets.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

FRME's tag-specific earnings announcements produced four negative reactions despite generally positive reported results, with a five-event average move of -1.3%.

Key Terms

net interest margin, fully taxable equivalent, nonaccrual status, common equity tier 1 capital ratio

4 terms

net interest margin financial

"Net interest margin on a fully taxable equivalent basis1 of 3.38%"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

fully taxable equivalent financial

"Net interest margin on a fully taxable equivalent basis1 of 3.38%"

A fully taxable equivalent converts a tax-free yield into the pretax yield you would need from a taxable investment to get the same after-tax return, using an investor’s marginal tax rate. Think of it like inflating a discounted price to the full sticker price so you can compare items side‑by‑side; investors use it to fairly compare tax-exempt securities with taxable alternatives and choose the better after-tax income.

nonaccrual status financial

"Two commercial lending relationships with outstanding balances totaling $41.8 million were placed in nonaccrual status"

Nonaccrual status is when a lender stops recording interest income on a loan because payments are late or the borrower’s ability to pay is in serious doubt. For investors this is a red flag: it signals deteriorating loan quality, can reduce reported earnings and may require the lender to set aside more reserves, much like marking a damaged product off the books until its value is clear.

common equity tier 1 capital ratio financial

"Common Equity Tier 1 Capital Ratio of 11.16%"

A bank’s common equity tier 1 (CET1) capital ratio measures the size of its strongest loss-absorbing capital—mainly common shares and retained earnings—relative to the bank’s assets after adjusting those assets for how risky they are (riskier loans count more). Think of it as the safety cushion compared with the weight of risky business; investors use it to judge a bank’s ability to survive losses, meet rules, and sustain dividends or growth.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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MUNCIE, Ind., July 22, 2026 (GLOBE NEWSWIRE) -- First Merchants Corporation (NASDAQ - FRME) (the "Corporation" or "First Merchants")

Second Quarter 2026 Highlights:

• Net income available to common stockholders was $43.5 million, or $0.70 per diluted common share, compared to $27.7 million, or $0.45 per diluted common share, in the first quarter of 2026. On an adjusted basis¹, net income totaled $46.4 million, or $0.74 per diluted common share, compared to $63.1 million, or $1.03 per diluted common share in the prior quarter.
• Adjusted pre-tax, pre-provision income¹ of $84.6 million, compared to $78.7 million in the prior quarter and $70.7 million in the second quarter of 2025.
• Net interest margin on a fully taxable equivalent basis¹ of 3.38%, up 3 basis points from the prior quarter and up 13 basis points from the second quarter of 2025.
• Loan growth of $221.7 million, or 5.8% annualized, on a linked quarter basis².
• Sold $271.1 million of mortgage loans with a weighted average rate of 3.43% during the current quarter and deployed proceeds to fund loan growth and pay down high-cost funding. The loans had been moved to held-for-sale and marked to fair value in the first quarter.
• Deposit growth of $267.8 million, or 6.5% annualized, on a linked quarter basis.
• Robust capital position with Common Equity Tier 1 Capital Ratio of 11.16%.
• Repurchased 976,631 shares of common stock totaling $38.3 million year-to-date, including 336,145 shares totaling $13.4 million in the second quarter.
• Nonperforming assets to total assets were 56 basis points compared to 43 basis points on a linked quarter basis. Two commercial lending relationships with outstanding balances totaling $41.8 million were placed in nonaccrual status and associated reserves of $29.7 million were recorded.
• Adjusted efficiency ratio¹ totaled 53.22% for the quarter.
• Successfully completed systems conversion of First Savings Financial Group, Inc. (“First Savings”) in mid-May.
  

"First Merchants continued to build momentum during the second quarter with expanding net interest margin, solid loan and deposit growth, and another quarter of strong commercial loan production," said Mark Hardwick, Chief Executive Officer. "While we identified two commercial lending relationships that were placed on nonaccrual, we acted promptly to recognize the associated reserves and believe our balance sheet remains well positioned. We successfully completed the integration of First Savings, further strengthening our statewide Indiana franchise and enhancing our ability to serve clients across Indiana, Ohio and Michigan. Our capital, liquidity and credit quality remain very strong and position us well to execute our long-term growth strategy and continue creating shareholder value."

Second Quarter Financial Results:

The Corporation reported second quarter 2026 net income available to common stockholders of $43.5 million compared to $56.4 million during the same period in 2025. Diluted earnings per common share for the period totaled $0.70 compared to $0.98 in the second quarter of 2025. Current quarter results included acquisition-related costs of $3.8 million that consist primarily of employee salaries, equipment, and professional fees. Excluding these non-core charges, adjusted earnings per common share¹ for the second quarter of 2026 totaled $0.74 compared to $0.98 in the prior year period. Subsequent to quarter-end, based on additional information obtained regarding conditions that existed at June 30, 2026, two commercial lending relationships were placed on nonaccrual status and reserve levels were increased, resulting in elevated provision expense for the second quarter. The first was a $28.1 million participation in a shared national credit to a commercial authorized wireless retailer. The second was a credit to a commercial and residential roofing contractor with an outstanding balance of $13.7 million. Associated reserves for these credits totaled $29.7 million.

Total assets of the Corporation equaled $21.3 billion as of quarter-end and loans totaled $15.5 billion. Loans increased $2.2 billion during the last twelve months and $268.8 million on a linked quarter basis. During the second quarter, the Corporation completed the previously announced sale of $271.1 million of mortgage loans that had been transferred to held-for-sale during the first quarter. Additionally, mortgage loans totaling $47.1 million were returned to held-for-investment during the second quarter. Excluding loans acquired through First Savings and the impact of mortgage loan sale activity, the Corporation generated organic loan growth of $697.9 million, or 5.2% during the past twelve months. On a linked quarter basis, organic loan growth totaled $221.7 million, or 5.8% annualized.

Investment securities, totaling $3.3 billion, decreased $88.9 million, or 2.6% during the last twelve months and decreased $17.8 million, or 2.2% annualized on a linked quarter basis. Investment securities declined during the quarter due to principal paydowns and maturities, offset by an increase in the securities portfolio valuation.

Total deposits equaled $16.8 billion as of quarter-end and increased by $2.0 billion over the past twelve months. The acquisition of First Savings contributed $1.7 billion in deposits. Total deposits increased $267.8 million, or 6.5% annualized, on a linked quarter basis. The loan to deposit ratio of 92.7% at period end remained stable on a linked quarter basis.

The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $241.6 million as of quarter-end, or 1.56% of loans, an increase of $29.1 million from the prior quarter. Net charge-offs totaled $3.9 million and provision for credit losses of $33.0 million was recorded during the quarter. Reserves for unfunded commitments totaling $18.5 million remained unchanged from the previous quarter. Nonperforming assets to total assets were 0.56% for the second quarter of 2026, an increase of 13 basis points compared to 0.43% in the prior quarter. The increase in nonperforming assets and provision for credit losses reflects the impact of the two commercial lending relationships placed in nonaccrual status.

Net interest income, totaling $158.9 million for the quarter, increased $7.6 million, or 5.0%, compared to prior quarter and increased $25.9 million, or 19.5%, compared to the second quarter of 2025. Fully taxable equivalent net interest margin was 3.38%, an increase of three basis points compared to the prior quarter and an increase of 13 basis points compared to the second quarter of 2025.

Noninterest income totaled $37.2 million for the quarter, an increase of $31.3 million, compared to the prior quarter and an increase of $5.9 million compared to the second quarter of 2025. The linked quarter increase primarily reflects the negative valuation adjustment of $29.8 million recorded in the first quarter on mortgage loans sold in the second quarter. Also contributing to the increase were higher gains on sales of loans and derivative hedge fees.

Noninterest expense totaled $115.3 million for the quarter, a decrease of $9.8 million from the prior quarter and an increase of $21.7 million from the second quarter of 2025. Acquisition-related costs totaling $3.8 million were incurred during the quarter, including $1.4 million in professional and other outside services and $1.0 million in equipment costs. Acquisition-related costs recorded in the prior quarter totaled $17.0 million.

The Corporation’s total risk-based capital ratio equaled 12.98%, the common equity tier 1 capital ratio equaled 11.16%, and the tangible common equity ratio totaled 8.99%. These ratios continue to reflect the Corporation’s strong capital position.

¹ See “Non-GAAP Financial Information” for reconciliation
² Excludes $47.1 million of loans returned to held-for-investment from held-for-sale

CONFERENCE CALL

First Merchants Corporation will conduct an earnings conference call and webcast at 9:00 a.m. (ET) on Thursday, July 23, 2026.

To access via phone, participants will need to register using the following link where they will be provided a phone number and access code: (https://register-conf.media-server.com/register/BIc1f6f98686534d529e7f3d66c4d50b16)

To view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/hqyvbr3q) during the time of the call. A replay of the webcast will be available until July 23, 2027.

Detailed financial results are reported on the attached pages.

About First Merchants Corporation

First Merchants Corporation is a financial holding company headquartered in Muncie, Indiana. The Corporation has one full-service bank charter, First Merchants Bank. The Bank also operates as First Merchants Private Wealth Advisors (as a division of First Merchants Bank).

First Merchants Corporation’s common stock is traded on the NASDAQ Global Select Market System under the symbol FRME. Quotations are carried in daily newspapers and can be found on the company’s Internet web page (http://www.firstmerchants.com).

FIRST MERCHANTS and the Shield Logo are federally registered trademarks of First Merchants Corporation.

Forward-Looking Statements

This news release 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”, “pattern”, “estimate”, “project”, “intend”, “anticipate”, “expect” and similar expressions or future or conditional verbs such as “will”, “would”, “should”, “could”, “might”, “can”, “may”, or similar expressions. These forward-looking statements include, but are not limited to, statements relating to the expected benefits of the merger between First Merchants and First Savings, including future financial and operating results, cost savings, enhanced revenues, and accretion/dilution to reported earnings that may be realized from the merger, as well as other statements of expectations regarding the merger, and other statements of First Merchants’ goals, intentions and expectations; statements regarding the First Merchants’ business plan and growth strategies; statements regarding the asset quality of First Merchants’ loan and investment portfolios; and estimates of First Merchants’ risks and future costs and benefits, whether with respect to the merger or otherwise. These forward-looking statements are subject to significant risks, assumptions and uncertainties that may cause results to differ materially from those set forth in forward-looking statements, including, among other things: the risk that the businesses of First Merchants and First Savings will not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; expected revenue synergies and cost savings from the merger may not be fully realized or realized within the expected time frame; revenues following the merger may be lower than expected; customer and employee relationships and business operations may be disrupted by the merger; possible changes in monetary and fiscal policies, and laws and regulations; the effects of easing restrictions on participants in the financial services industry; the cost and other effects of legal and administrative cases; possible changes in the credit-worthiness of customers and the possible impairment of collectability of loans; fluctuations in market rates of interest; competitive factors in the banking industry; changes in the banking legislation or regulatory requirements of federal and state agencies applicable to bank holding companies and banks like First Merchants’ affiliate bank; continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; changes in market, economic, operational, liquidity (including the ability to grow and maintain core deposits and retain large uninsured deposits), credit and interest rate risks associated with First Merchants’ business; the impacts of epidemics, pandemics or other infectious disease outbreaks; and other risks and factors identified in each of First Merchants’ filings with the SEC. First Merchants undertakes no obligation to update any forward-looking statement, whether written or oral, relating to the matters discussed in this news release. In addition, First Merchants’ past results of operations do not necessarily indicate their anticipated future results.

Non-GAAP Financial Measures

This news release contains non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of the registrant’s historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet or statement of cash flows (or equivalent statements) of the issuer; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. In this regard, GAAP refers to generally accepted accounting principles in the United States. Pursuant to the requirements of Regulation G, First Merchants Corporation has provided reconciliations within this news release, as necessary, of the non-GAAP financial measure to the most directly comparable GAAP financial measure.

CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars In Thousands, Except Per Share Amounts)	June 30,
		2026				2025
ASSETS
Cash and due from banks	$	86,665			$	81,567
Interest-bearing deposits		529,432				223,343
Investment securities available for sale		1,384,392				1,358,130
Investment securities held to maturity, net of allowance for credit losses of $245 in 2026 and 2025		1,907,684				2,022,826
Loans held for sale		77,880				28,783
Loans		15,530,737				13,296,759
Less: Allowance for credit losses - loans		(241,615	)			(195,316	)
Net loans		15,289,122				13,101,443
Premises and equipment		148,164				122,808
Federal Home Loan Bank stock		70,818				47,290
Interest receivable		101,927				93,258
Goodwill		788,186				712,002
Other intangibles		38,972				16,797
Cash surrender value of life insurance		373,242				305,695
Other real estate owned		1,562				177
Tax asset, deferred and receivable		113,975				97,749
Other assets		436,744				380,909
TOTAL ASSETS	$	21,348,765			$	18,592,777
LIABILITIES
Deposits:
Noninterest-bearing	$	3,831,836			$	2,197,416
Interest-bearing		12,921,545				12,600,162
Total Deposits		16,753,381				14,797,578
Borrowings:
Federal funds purchased		—				85,000
Securities sold under repurchase agreements		103,340				114,758
Federal Home Loan Bank advances		1,414,059				898,702
Subordinated debentures and other borrowings		86,350				62,617
Total Borrowings		1,603,749				1,161,077
Interest payable		17,491				16,174
Other liabilities		276,967				269,996
Total Liabilities		18,651,588				16,244,825
STOCKHOLDERS' EQUITY
Preferred Stock, $1,000 par value, $1,000 liquidation value:
Authorized -- 600 cumulative shares
Issued and outstanding - 125 cumulative shares		125				125
Preferred Stock, Series A, no par value, $2,500 liquidation preference:
Authorized -- 10,000 non-cumulative perpetual shares
Issued and outstanding - 10,000 non-cumulative perpetual shares		25,000				25,000
Common Stock, $0.125 stated value:
Authorized -- 100,000,000 shares
Issued and outstanding - 62,205,528 and 57,272,433 shares		7,776				7,159
Additional paid-in capital		1,358,975				1,163,170
Retained earnings		1,438,894				1,342,473
Accumulated other comprehensive loss		(133,593	)			(189,975	)
Total Stockholders' Equity		2,697,177				2,347,952
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	21,348,765			$	18,592,777

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)	Three Months Ended								Six Months Ended
(Dollars In Thousands, Except Per Share Amounts)	June 30,								June 30,
		2026				2025				2026				2025
INTEREST INCOME
Loans:
Taxable	$	226,531			$	195,173			$	440,158			$	382,901
Tax-exempt		11,823				10,805				23,412				21,337
Investment securities:
Taxable		7,355				8,266				14,902				16,638
Tax-exempt		12,458				12,516				25,055				25,033
Deposits with financial institutions		1,147				1,892				2,391				4,264
Federal Home Loan Bank stock		1,525				1,083				3,490				2,080
Total Interest Income		260,839				229,735				509,408				452,253
INTEREST EXPENSE
Deposits		86,254				84,241				170,347				164,788
Federal funds purchased		717				965				1,307				1,777
Securities sold under repurchase agreements		419				663				751				1,405
Federal Home Loan Bank advances		13,190				9,714				24,238				19,078
Subordinated debentures and other borrowings		1,318				1,138				2,521				1,921
Total Interest Expense		101,898				96,721				199,164				188,969
NET INTEREST INCOME		158,941				133,014				310,244				263,284
Provision for credit losses		33,000				5,600				37,900				9,800
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		125,941				127,414				272,344				253,484
NONINTEREST INCOME
Service charges on deposit accounts		9,372				8,566				18,409				16,638
Fiduciary and wealth management fees		9,638				8,831				19,406				17,475
Card payment fees		5,505				4,932				10,780				9,458
Net gains and fees on sales of loans		7,742				5,849				14,253				10,871
Derivative hedge fees		1,117				831				1,681				1,235
Other customer fees		880				401				1,473				816
Earnings on bank-owned life insurance		2,325				1,913				5,771				4,092
Net realized losses on sales of available for sale securities		—				(1	)			—				(8	)
Net loss on mortgage loans reclassified to held for sale		—				—				(29,755	)			—
Other income (loss)		577				(19	)			967				774
Total Noninterest Income		37,156				31,303				42,985				61,351
NONINTEREST EXPENSE
Salaries and employee benefits		65,774				54,527				135,217				109,509
Net occupancy		8,227				6,845				16,528				14,061
Equipment		8,603				6,927				16,421				13,935
Marketing		2,370				1,997				3,971				3,350
Outside data processing fees		8,045				7,107				15,235				13,036
Printing and office supplies		491				272				868				619
Intangible asset amortization		2,706				1,505				5,008				3,031
FDIC assessments		4,390				3,552				8,283				7,200
Other real estate owned and foreclosure expenses		1,052				29				2,152				629
Professional and other outside services		4,979				3,741				19,572				7,002
Other expenses		8,710				7,096				17,237				14,128
Total Noninterest Expense		115,347				93,598				240,492				186,500
Income Before Income Taxes		47,750				65,119				74,837				128,335
Income tax expense		3,770				8,287				2,701				16,164
NET INCOME		43,980				56,832				72,136				112,171
Preferred stock dividends		469				469				938				938
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	43,511			$	56,363			$	71,198			$	111,233
PER SHARE DATA:
Basic Net Income Available to Common Stockholders	$	0.70			$	0.98			$	1.16			$	1.93
Diluted Net Income Available to Common Stockholders	$	0.70			$	0.98			$	1.15			$	1.92
Cash Dividends Paid to Common Stockholders	$	0.37			$	0.36			$	0.73			$	0.71
Tangible Common Book Value Per Share1	$	29.80			$	27.90			$	29.80			$	27.90
Average Diluted Common Shares Outstanding (in thousands)		62,574				57,773				61,795				58,005

FINANCIAL HIGHLIGHTS
(Dollars In Thousands)	Three Months Ended								Six Months Ended
	June 30,								June 30,
		2026				2025				2026				2025
NET CHARGE-OFFS	$	3,905			$	2,315			$	14,161			$	7,241
AVERAGE BALANCES:
Assets	$	21,253,171			$	18,508,785			$	20,832,683			$	18,425,723
Loans		15,423,286				13,211,729				15,175,407				13,077,288
Earning Assets		19,583,204				17,158,984				19,215,138				17,060,278
Deposits		16,638,273				14,632,113				16,360,912				14,526,314
Stockholders' Equity		2,702,249				2,340,010				2,679,131				2,340,440
FINANCIAL RATIOS:
Return on Average Assets		0.83	%			1.23	%			0.69	%			1.22	%
Return on Average Stockholders' Equity		6.44				9.63				5.32				9.51
Return on Tangible Common Stockholders' Equity1		9.80				14.49				8.10				14.30
Average Earning Assets to Average Assets		92.14				92.71				92.24				92.59
Allowance for Credit Losses - Loans as % of Loans		1.56				1.47				1.56				1.47
Net Charge-offs as % of Average Loans (Annualized)		0.10				0.07				0.19				0.11
Average Stockholders' Equity to Average Assets		12.71				12.64				12.86				12.70
Fully Taxable Equivalent (FTE) Yield on Average Earning Assets		5.46				5.50				5.43				5.45
Interest Expense/Average Earning Assets		2.08				2.25				2.07				2.22
Net Interest Margin FTE1		3.38				3.25				3.36				3.23
Efficiency Ratio1		55.11				53.99				63.75				54.26

ASSET QUALITY
(Dollars In Thousands)	June 30,				March 31,				December 31,				September 30,				June 30,
		2026				2026				2025				2025				2025
Nonaccrual Loans	$	118,203			$	89,592			$	71,773			$	65,740			$	67,358
Other Real Estate Owned and Repossessions		1,562				1,264				658				1,270				177
Nonperforming Assets (NPA)		119,765				90,856				72,431				67,010				67,535
Accruing Loans 90+ Days Delinquent		9,738				4,078				2,042				1,925				4,443
NPAs & 90+ Days Delinquent	$	129,503			$	94,934			$	74,473			$	68,935			$	71,978
Allowance for Credit Losses - Loans	$	241,615			$	212,520			$	195,597			$	194,468			$	195,316
Quarterly Net Charge-offs		3,905				10,256				6,021				5,148				2,315
NPAs / Assets %		0.56	%			0.43	%			0.38	%			0.36	%			0.36	%
NPAs & 90 Day / Assets %		0.61	%			0.45	%			0.39	%			0.37	%			0.39	%
NPAs / Loans and OREO %		0.77	%			0.60	%			0.52	%			0.49	%			0.51	%
Allowance for Credit Losses - Loans as % of Loans		1.56	%			1.39	%			1.42	%			1.43	%			1.47	%
Quarterly Net Charge-offs as % of Average Loans (Annualized)		0.10	%			0.27	%			0.18	%			0.15	%			0.07	%

CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars In Thousands, Except Per Share Amounts)	June 30,				March 31,				December 31,				September 30,				June 30,
		2026				2026				2025				2025				2025
ASSETS
Cash and due from banks	$	86,665			$	98,083			$	84,158			$	88,079			$	81,567
Interest-bearing deposits		529,432				175,354				196,300				168,706				223,343
Investment securities available for sale		1,384,392				1,372,417				1,407,102				1,386,903				1,358,130
Investment securities held to maturity, net of allowance for credit losses		1,907,684				1,937,485				1,971,539				1,995,488				2,022,826
Loans held for sale		77,880				401,839				20,079				23,190				28,783
Loans		15,530,737				15,261,889				13,791,707				13,591,174				13,296,759
Less: Allowance for credit losses - loans		(241,615	)			(212,520	)			(195,597	)			(194,468	)			(195,316	)
Net loans		15,289,122				15,049,369				13,596,110				13,396,706				13,101,443
Premises and equipment		148,164				146,013				121,058				121,771				122,808
Federal Home Loan Bank stock		70,818				70,835				47,245				47,264				47,290
Interest receivable		101,927				97,026				93,374				89,102				93,258
Goodwill		788,186				782,789				712,002				712,002				712,002
Other intangibles		38,972				41,678				13,800				15,298				16,797
Cash surrender value of life insurance		373,242				371,238				308,438				306,583				305,695
Other real estate owned		1,562				1,264				658				1,270				177
Tax asset, deferred and receivable		113,975				116,814				78,664				89,758				97,749
Other assets		436,744				410,317				374,574				369,509				380,909
TOTAL ASSETS	$	21,348,765			$	21,072,521			$	19,025,101			$	18,811,629			$	18,592,777
LIABILITIES
Deposits:
Noninterest-bearing	$	3,831,836			$	3,748,279			$	2,137,262			$	2,100,570			$	2,197,416
Interest-bearing		12,921,545				12,737,338				13,157,593				12,769,409				12,600,162
Total Deposits		16,753,381				16,485,617				15,294,855				14,869,979				14,797,578
Borrowings:
Federal funds purchased		—				170,000				40,000				199,370				85,000
Securities sold under repurchase agreements		103,340				89,458				103,755				122,226				114,758
Federal Home Loan Bank advances		1,414,059				1,299,192				798,549				798,626				898,702
Subordinated debentures and other borrowings		86,350				86,345				57,630				57,632				62,617
Total Borrowings		1,603,749				1,644,995				999,934				1,177,854				1,161,077
Interest payable		17,491				18,890				18,235				18,240				16,174
Other liabilities		276,967				250,454				245,410				333,154				269,996
Total Liabilities		18,651,588				18,399,956				16,558,434				16,399,227				16,244,825
STOCKHOLDERS' EQUITY
Preferred Stock, $1,000 par value, $1,000 liquidation value:
Authorized -- 600 cumulative shares
Issued and outstanding - 125 cumulative shares		125				125				125				125				125
Preferred Stock, Series A, no par value, $2,500 liquidation preference:
Authorized -- 10,000 non-cumulative perpetual shares
Issued and outstanding - 10,000 non-cumulative perpetual shares		25,000				25,000				25,000				25,000				25,000
Common Stock, $0.125 stated value:
Authorized -- 100,000,000 shares
Issued and outstanding		7,776				7,813				7,119				7,149				7,159
Additional paid-in capital		1,358,975				1,369,879				1,150,816				1,158,026				1,163,170
Retained earnings		1,438,894				1,418,609				1,413,742				1,377,966				1,342,473
Accumulated other comprehensive loss		(133,593	)			(148,861	)			(130,135	)			(155,864	)			(189,975	)
Total Stockholders' Equity		2,697,177				2,672,565				2,466,667				2,412,402				2,347,952
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	21,348,765			$	21,072,521			$	19,025,101			$	18,811,629			$	18,592,777

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollars In Thousands, Except Per Share Amounts)	June 30,				March 31,				December 31,				September 30,				June 30,
		2026				2026				2025				2025				2025
INTEREST INCOME
Loans:
Taxable	$	226,531			$	213,627			$	203,120			$	200,406			$	195,173
Tax-exempt		11,823				11,589				10,905				11,173				10,805
Investment securities:
Taxable		7,355				7,547				7,736				8,288				8,266
Tax-exempt		12,458				12,597				12,459				12,460				12,516
Deposits with financial institutions		1,147				1,244				2,187				1,676				1,892
Federal Home Loan Bank stock		1,525				1,965				1,037				1,092				1,083
Total Interest Income		260,839				248,569				237,444				235,095				229,735
INTEREST EXPENSE
Deposits		86,254				84,093				88,670				90,821				84,241
Federal funds purchased		717				590				218				224				965
Securities sold under repurchase agreements		419				332				405				654				663
Federal Home Loan Bank advances		13,190				11,048				8,047				8,638				9,714
Subordinated debentures and other borrowings		1,318				1,203				1,040				1,093				1,138
Total Interest Expense		101,898				97,266				98,380				101,430				96,721
NET INTEREST INCOME		158,941				151,303				139,064				133,665				133,014
Provision for credit losses		33,000				4,900				7,150				4,300				5,600
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		125,941				146,403				131,914				129,365				127,414
NONINTEREST INCOME
Service charges on deposit accounts		9,372				9,037				8,704				8,921				8,566
Fiduciary and wealth management fees		9,638				9,768				9,175				8,842				8,831
Card payment fees		5,505				5,275				5,325				5,007				4,932
Net gains and fees on sales of loans		7,742				6,511				5,421				4,983				5,849
Derivative hedge fees		1,117				564				1,053				1,097				831
Other customer fees		880				593				315				414				401
Earnings on bank-owned life insurance		2,325				3,446				1,854				1,667				1,913
Net realized losses on sales of available for sale securities		—				—				—				—				(1	)
Net loss on mortgage loans reclassified to held for sale		—				(29,755	)			—				—				—
Other income (loss)		577				390				1,259				1,546				(19	)
Total Noninterest Income		37,156				5,829				33,106				32,477				31,303
NONINTEREST EXPENSE
Salaries and employee benefits		65,774				69,443				58,254				57,317				54,527
Net occupancy		8,227				8,301				7,283				7,057				6,845
Equipment		8,603				7,818				7,681				6,998				6,927
Marketing		2,370				1,601				2,324				2,120				1,997
Outside data processing fees		8,045				7,190				7,509				6,943				7,107
Printing and office supplies		491				377				450				311				272
Intangible asset amortization		2,706				2,302				1,498				1,499				1,505
FDIC assessments		4,390				3,893				2,684				3,526				3,552
Other real estate owned and foreclosure expenses		1,052				1,100				775				121				29
Professional and other outside services		4,979				14,593				3,774				3,718				3,741
Other expenses		8,710				8,527				7,290				6,951				7,096
Total Noninterest Expense		115,347				125,145				99,522				96,561				93,598
Income Before Income Taxes		47,750				27,087				65,498				65,281				65,119
Income tax expense (benefit)		3,770				(1,069	)			8,433				8,516				8,287
NET INCOME		43,980				28,156				57,065				56,765				56,832
Preferred stock dividends		469				469				469				468				469
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	43,511			$	27,687			$	56,596			$	56,297			$	56,363
PER SHARE DATA:
Basic Net Income Available to Common Stockholders	$	0.70			$	0.46			$	0.99			$	0.98			$	0.98
Diluted Net Income Available to Common Stockholders	$	0.70			$	0.45			$	0.99			$	0.98			$	0.98
Cash Dividends Paid to Common Stockholders	$	0.37			$	0.36			$	0.36			$	0.36			$	0.36
Tangible Common Book Value Per Share1	$	29.80			$	29.34			$	30.18			$	29.08			$	27.90
Average Diluted Common Shares Outstanding (in thousands)		62,574				61,008				57,442				57,448				57,773
FINANCIAL RATIOS:
Return on Average Assets		0.83	%			0.55	%			1.20	%			1.22	%			1.23	%
Return on Average Stockholders' Equity		6.44				4.17				9.23				9.51				9.63
Return on Tangible Common Stockholders' Equity1		9.80				6.39				13.57				14.21				14.49
Average Earning Assets to Average Assets		92.14				92.33				92.69				92.73				92.71
Allowance for Credit Losses - Loans as % of Total Loans		1.56				1.39				1.42				1.43				1.47
Net Charge-offs as % of Average Loans (Annualized)		0.10				0.27				0.18				0.15				0.07
Average Stockholders' Equity to Average Assets		12.71				13.01				12.88				12.71				12.64
Fully Taxable Equivalent (FTE) Yield on Average Earning Assets		5.46				5.41				5.52				5.58				5.50
Interest Expense/Average Earning Assets		2.08				2.06				2.23				2.34				2.25
Net Interest Margin FTE1		3.38				3.35				3.29				3.24				3.25
Efficiency Ratio1		55.11				74.45				54.52				55.09				53.99

LOANS
(Dollars In Thousands)	June 30,				March 31,				December 31,				September 30,				June 30,
		2026				2026				2025				2025				2025
Commercial and industrial loans	$	4,720,441			$	4,611,596			$	4,478,282			$	4,604,895			$	4,440,924
Agricultural land, production and other loans to farmers		323,348				310,788				283,125				275,817				265,172
Real estate loans:
Construction		874,419				899,895				804,775				789,021				836,033
Commercial real estate, non-owner occupied		3,271,620				3,192,337				2,338,666				2,304,889				2,171,092
Commercial real estate, owner occupied		1,368,627				1,334,959				1,237,100				1,232,117				1,226,797
Residential		2,361,480				2,273,860				2,420,310				2,412,783				2,397,094
Home equity		1,118,662				1,104,739				710,980				687,021				673,961
Individuals' loans for household and other personal expenditures		149,878				153,283				155,436				138,703				141,045
Public finance and other commercial loans		1,342,262				1,380,432				1,363,033				1,145,928				1,144,641
Loans		15,530,737				15,261,889				13,791,707				13,591,174				13,296,759
Allowance for credit losses - loans		(241,615	)			(212,520	)			(195,597	)			(194,468	)			(195,316	)
NET LOANS	$	15,289,122			$	15,049,369			$	13,596,110			$	13,396,706			$	13,101,443

DEPOSITS
(Dollars In Thousands)	June 30,				March 31,				December 31,				September 30,				June 30,
		2026				2026				2025				2025				2025
Demand deposits	$	8,570,517			$	8,009,548			$	7,770,473			$	7,645,698			$	7,798,695
Savings deposits		6,043,560				6,204,526				5,481,785				5,164,707				4,984,659
Certificates and other time deposits of $100,000 or less		666,369				665,639				603,690				627,828				617,857
Certificates and other time deposits of $100,000 or more		1,054,075				1,012,922				915,293				910,337				891,139
Brokered certificates of deposits (1)		418,860				592,982				523,614				521,409				505,228
TOTAL DEPOSITS	$	16,753,381			$	16,485,617			$	15,294,855			$	14,869,979			$	14,797,578

⁽¹⁾ Total brokered deposits of $1.3 billion, which includes brokered CD's of $418.9 million at June 30, 2026.

CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars In Thousands)
	Three Months Ended
	June 30, 2026									June 30, 2025
	Average Balance			Interest Income / Expense			Average Rate			Average Balance			Interest Income / Expense			Average Rate
ASSETS
Interest-bearing deposits	$	228,468		$	1,147		2.01	%		$	252,613		$	1,892		3.00	%
Federal Home Loan Bank stock		70,826			1,525		8.61				46,598			1,083		9.30
Investment Securities: (1)
Taxable		1,457,179			7,355		2.02				1,605,718			8,266		2.06
Tax-exempt (2)		2,024,323			15,769		3.12				2,042,326			15,843		3.10
Total Investment Securities		3,481,502			23,124		2.66				3,648,044			24,109		2.64
Loans held for sale		379,122			4,541		4.79				25,411			389		6.12
Loans: (3)
Commercial		10,809,590			172,562		6.39				9,006,650			154,108		6.84
Real estate mortgage		2,133,638			26,859		5.04				2,200,521			25,062		4.56
HELOC and installment		1,281,529			22,569		7.04				834,901			15,614		7.48
Tax-exempt (2)		1,198,529			14,903		4.97				1,144,246			13,677		4.78
Total Loans, including loans held for sale		15,802,408			241,434		6.11				13,211,729			208,850		6.32
Total Earning Assets		19,583,204			267,230		5.46	%			17,158,984			235,934		5.50	%
Total Non-Earning Assets		1,669,967									1,349,801
TOTAL ASSETS	$	21,253,171								$	18,508,785
LIABILITIES
Interest-Bearing Deposits:
Interest-bearing deposits	$	4,515,106		$	31,239		2.77	%		$	5,545,158		$	35,303		2.55	%
Money market deposits		4,731,251			33,269		2.81				3,613,952			28,714		3.18
Savings deposits		1,424,566			2,279		0.64				1,282,951			2,513		0.78
Certificates and other time deposits		2,241,647			19,467		3.47				2,003,682			17,711		3.54
Total Interest-Bearing Deposits		12,912,570			86,254		2.67				12,445,743			84,241		2.71
Borrowings		1,640,431			15,644		3.81				1,250,519			12,480		3.99
Total Interest-Bearing Liabilities		14,553,001			101,898		2.80				13,696,262			96,721		2.82
Noninterest-bearing deposits		3,725,703									2,186,370
Other liabilities		272,218									286,143
Total Liabilities		18,550,922									16,168,775
STOCKHOLDERS' EQUITY		2,702,249									2,340,010
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	21,253,171								$	18,508,785
Net Interest Income (FTE)				$	165,332								$	139,213
Net Interest Spread (FTE) (4)							2.66	%								2.68	%
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets							5.46	%								5.50	%
Interest Expense / Average Earning Assets							2.08	%								2.25	%
Net Interest Margin (FTE) (5)							3.38	%								3.25	%
(1) Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
(2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2026 and 2025. These totals equal $6.4 million and $6.2 million for the three months ended June 30, 2026 and 2025, respectively.
(3) Non accruing loans have been included in the average balances.
(4) Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
(5) Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.

CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars In Thousands)
	Six Months Ended
	June 30, 2026									June 30, 2025
	Average Balance			Interest Income / Expense			Average Rate			Average Balance			Interest Income / Expense			Average Rate
ASSETS
Federal Funds Sold
Interest-bearing deposits	$	220,361		$	2,391		2.17	%		$	273,200		$	4,264		3.12	%
Federal Home Loan Bank stock		66,795			3,490		10.45				45,296			2,080		9.18
Investment Securities: (1)
Taxable		1,483,615			14,902		2.01				1,620,005			16,638		2.05
Tax-exempt (2)		2,043,092			31,715		3.10				2,044,489			31,687		3.10
Total Investment Securities		3,526,707			46,617		2.64				3,664,494			48,325		2.64
Loans held for sale		225,868			5,968		5.28				23,190			708		6.11
Loans: (3)
Commercial		10,523,765			337,327		6.41				8,889,119			301,880		6.79
Real estate mortgage		2,250,726			54,774		4.87				2,195,988			49,508		4.51
HELOC and installment		1,203,122			42,089		7.00				831,904			30,805		7.41
Tax-exempt (2)		1,197,794			29,537		4.93				1,137,087			27,009		4.75
Total Loans, including loans held for sale		15,401,275			469,695		6.10				13,077,288			409,910		6.27
Total Earning Assets		19,215,138			522,193		5.43	%			17,060,278			464,579		5.45	%
Total Non-Earning Assets		1,617,545									1,365,445
TOTAL ASSETS	$	20,832,683								$	18,425,723
LIABILITIES
Interest-Bearing deposits:
Interest-bearing deposits	$	4,970,120		$	61,020		2.46	%		$	5,533,858		$	69,909		2.53	%
Money market deposits		4,649,219			65,317		2.81				3,526,461			54,666		3.10
Savings deposits		1,398,327			4,512		0.65				1,291,133			4,958		0.77
Certificates and other time deposits		2,242,527			39,498		3.52				1,975,923			35,255		3.57
Total Interest-Bearing Deposits		13,260,193			170,347		2.57				12,327,375			164,788		2.67
Borrowings		1,524,974			28,817		3.78				1,256,688			24,181		3.85
Total Interest-Bearing Liabilities		14,785,167			199,164		2.69				13,584,063			188,969		2.78
Noninterest-bearing deposits		3,100,719									2,198,939
Other liabilities		267,666									302,281
Total Liabilities		18,153,552									16,085,283
STOCKHOLDERS' EQUITY		2,679,131									2,340,440
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	20,832,683								$	18,425,723
Net Interest Income (FTE)				$	323,029								$	275,610
Net Interest Spread (FTE) (4)							2.74	%								2.67	%
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets							5.43	%								5.45	%
Interest Expense / Average Earning Assets							2.07	%								2.22	%
Net Interest Margin (FTE) (5)							3.36	%								3.23	%
(1) Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
(2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2026 and 2025. These totals equal $12.8 million and $12.3 million for the six months ended June 30, 2026 and 2025, respectively.
(3) Non accruing loans have been included in the average balances.
(4) Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
(5) Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.

ADJUSTED NET INCOME AND DILUTED EARNINGS PER COMMON SHARE (NON-GAAP)
(Dollars In Thousands, Except Per Share Amounts)	Three Months Ended																			Six Months Ended
	June 30,				March 31,				December 31,				September 30,				June 30,			June 30,				June 30,
		2026				2026				2025				2025				2025			2026				2025
Net Income Available to Common Stockholders (GAAP)	$	43,511			$	27,687			$	56,596			$	56,297			$	56,363		$	71,198			$	111,233
Adjustments:
Net realized losses on sales of available for sale securities		—				—				—				—				1			—				8
Net loss on mortgage loans reclassified to held for sale		—				29,755				—				—				—			29,755				—
Acquisition-related expenses		3,830				16,968				524				276				—			20,798				—
Non-core expenses (1)(2)		—				—				(743	)			633				—			—				—
Tax on adjustments		(925	)			(11,279	)			53				(220	)			—			(12,204	)			(2	)
Adjusted Net Income Available to Common Stockholders (non-GAAP)	$	46,416			$	63,131			$	56,430			$	56,986			$	56,364		$	109,547			$	111,239
Average Diluted Common Shares Outstanding (in thousands)		62,574				61,008				57,442				57,448				57,773			61,795				58,005
Diluted Earnings Per Common Share (GAAP)	$	0.70			$	0.45			$	0.99			$	0.98			$	0.98		$	1.15			$	1.92
Adjustments:
Net realized losses on sales of available for sale securities		—				—				—				—				—			—				—
Net loss on mortgage loans reclassified to held for sale		—				0.49				—				—				—			0.48				—
Acquisition-related expenses		0.06				0.28				—				—				—			0.34				—
Non-core expenses (1)(2)		—				—				(0.01	)			0.01				—			—				—
Tax on adjustments		(0.02	)			(0.19	)			—				—				—			(0.20	)			—
Adjusted Diluted Earnings Per Common Share (non-GAAP)	$	0.74			$	1.03			$	0.98			$	0.99			$	0.98		$	1.77			$	1.92

⁽¹⁾ Non-core expenses in the Three Months Ended December 31, 2025 included a $0.7 million reduction in the FDIC special assessment
⁽²⁾ Non-core expenses in the Three Months Ended September 30, 2025 included $0.6 million of severance costs

PRE-TAX, PRE-PROVISION ("PTPP") EARNINGS, AS ADJUSTED (NON-GAAP)
(Dollars In Thousands)	Three Months Ended																				Six Months Ended
	June 30,				March 31,				December 31,				September 30,				June 30,				June 30,				June 30,
		2026				2026				2025				2025				2025				2026				2025
Net Interest Income (GAAP)	$	158,941			$	151,303			$	139,064			$	133,665			$	133,014			$	310,244			$	263,284
Noninterest Income (GAAP)		37,156				5,829				33,106				32,477				31,303				42,985				61,351
Total Revenue		196,097				157,132				172,170				166,142				164,317				353,229				324,635
Less: Noninterest Expense (GAAP)		(115,347	)			(125,145	)			(99,522	)			(96,561	)			(93,598	)			(240,492	)			(186,500	)
Add: Net Realized Losses on Sales of Available for Sale Securities		—				—				—				—				1				—				8
Add: Net loss on mortgage loans reclassified to held for sale		—				29,755				—				—				—				29,755				—
Add: Acquisition-Related Expenses (non-GAAP)		3,830				16,968				524				276				—				20,798				—
Add: Non-core Expenses (1)(2) (non-GAAP)		—				—				(743	)			633				—				—				—
Pre-Tax, Pre-Provision Earnings (non-GAAP)	$	84,580			$	78,710			$	72,429			$	70,490			$	70,720			$	163,290			$	138,143
Average Assets (GAAP)	$	21,253,171			$	20,407,523			$	19,039,989			$	18,637,581			$	18,508,785			$	20,832,683			$	18,425,723
Average Equity (GAAP)	$	2,702,249			$	2,655,756			$	2,452,005			$	2,367,971			$	2,340,010			$	2,679,131			$	2,340,440
PTPP/Average Assets (PTPP ROA)		1.59	%			1.54	%			1.52	%			1.51	%			1.53	%			1.57	%			1.50	%
PTPP/Average Equity (PTPP ROE)		12.52	%			11.86	%			11.82	%			11.91	%			12.09	%			12.19	%			11.80	%

⁽¹⁾ Non-core expenses in the Three Months Ended December 31, 2025 included a $0.7 million reduction in the FDIC special assessment
⁽²⁾ Non-core expenses in the Three Months Ended September 30, 2025 included $0.6 million of severance costs

NET INTEREST MARGIN (FTE) (NON-GAAP)
(Dollars in Thousands)
	Three Months Ended																				Six Months Ended
	June 30,				March 31,				December 31,				September 30,				June 30,				June 30,				June 30,
		2026				2026				2025				2025				2025				2026				2025
Net Interest Income (GAAP)	$	158,941			$	151,303			$	139,064			$	133,665			$	133,014			$	310,244			$	263,284
Fully Taxable Equivalent ("FTE") Adjustment		6,391				6,394				6,185				6,209				6,199				12,785				12,326
Net Interest Income (FTE) (Non-GAAP)	$	165,332			$	157,697			$	145,249			$	139,874			$	139,213			$	323,029			$	275,610
Average Earning Assets (GAAP)	$	19,583,204			$	18,842,984			$	17,648,233			$	17,282,901			$	17,158,984			$	19,215,138			$	17,060,278
Net Interest Margin (GAAP)		3.25	%			3.21	%			3.15	%			3.09	%			3.10	%			3.23	%			3.09	%
FTE Adjustment		0.13	%			0.14	%			0.14	%			0.15	%			0.15	%			0.13	%			0.14	%
Net Interest Margin (FTE) (Non-GAAP)		3.38	%			3.35	%			3.29	%			3.24	%			3.25	%			3.36	%			3.23	%

RETURN ON TANGIBLE COMMON EQUITY (NON-GAAP)
(Dollars In Thousands)	Three Months Ended																				Six Months Ended
	June 30,				March 31,				December 31,				September 30,				June 30,				June 30,				June 30,
		2026				2026				2025				2025				2025				2026				2025
Total Average Stockholders' Equity (GAAP)	$	2,702,249			$	2,655,756			$	2,452,005			$	2,367,971			$	2,340,010			$	2,679,131			$	2,340,440
Less: Average Preferred Stock		(25,125	)			(25,125	)			(25,125	)			(25,125	)			(25,125	)			(25,125	)			(25,125	)
Less: Average Intangible Assets, Net of Tax		(813,608	)			(784,490	)			(723,466	)			(724,619	)			(725,813	)			(799,129	)			(726,362	)
Average Tangible Common Equity, Net of Tax (non-GAAP)	$	1,863,516			$	1,846,141			$	1,703,414			$	1,618,227			$	1,589,072			$	1,854,877			$	1,588,953
Net Income Available to Common Stockholders (GAAP)	$	43,511			$	27,687			$	56,596			$	56,297			$	56,363			$	71,198			$	111,233
Plus: Intangible Asset Amortization, Net of Tax		2,137				1,819				1,183				1,185				1,188				3,956				2,394
Tangible Net Income (Non-GAAP)	$	45,648			$	29,506			$	57,779			$	57,482			$	57,551			$	75,154			$	113,627
Return on Tangible Common Equity (non-GAAP)		9.80	%			6.39	%			13.57	%			14.21	%			14.49	%			8.10	%			14.30	%

EFFICIENCY RATIO (NON-GAAP)
(Dollars In Thousands)	Three Months Ended																				Six Months Ended
	June 30,				March 31,				December 31,				September 30,				June 30,				June 30,				June 30,
		2026				2026				2025				2025				2025				2026				2025
Noninterest Expense (GAAP)	$	115,347			$	125,145			$	99,522			$	96,561			$	93,598			$	240,492			$	186,500
Less: Intangible Asset Amortization		(2,706	)			(2,302	)			(1,498	)			(1,499	)			(1,505	)			(5,008	)			(3,031	)
Less: OREO and Foreclosure Expenses		(1,052	)			(1,100	)			(775	)			(121	)			(29	)			(2,152	)			(629	)
Adjusted Noninterest Expense (non-GAAP)	$	111,589			$	121,743			$	97,249			$	94,941			$	92,064			$	233,332			$	182,840
Net Interest Income (GAAP)	$	158,941			$	151,303			$	139,064			$	133,665			$	133,014			$	310,244			$	263,284
Plus: Fully Taxable Equivalent Adjustment		6,391				6,394				6,185				6,209				6,199				12,785				12,326
Net Interest Income on a Fully Taxable Equivalent Basis (non-GAAP)	$	165,332			$	157,697			$	145,249			$	139,874			$	139,213			$	323,029			$	275,610
Noninterest Income (GAAP)	$	37,156			$	5,829			$	33,106			$	32,477			$	31,303			$	42,985			$	61,351
Less: Investment Securities (Gains) Losses		—				—				—				—				1				—				8
Adjusted Noninterest Income (non-GAAP)	$	37,156			$	5,829			$	33,106			$	32,477			$	31,304			$	42,985			$	61,359
Adjusted Revenue (non-GAAP)	$	202,488			$	163,526			$	178,355			$	172,351			$	170,517			$	366,014			$	336,969
Efficiency Ratio (non-GAAP)		55.11	%			74.45	%			54.52	%			55.09	%			53.99	%			63.75	%			54.26	%
Adjusted Noninterest Expense (non-GAAP)	$	111,589			$	121,743			$	97,249			$	94,941			$	92,064			$	233,332			$	182,840
Less: Acquisition-related Expenses		(3,830	)			(16,968	)			(524	)			(276	)			—				(20,798	)			—
Less: Non-core Expenses (1)(2)		—				—				743				(633	)			—				—				—
Adjusted Noninterest Expense Excluding Non-core Expenses (non-GAAP)	$	107,759			$	104,775			$	97,468			$	94,032			$	92,064			$	212,534			$	182,840
Adjusted Revenue (non-GAAP)	$	202,488			$	163,526			$	178,355			$	172,351			$	170,517			$	366,014			$	336,969
Add: Net loss on mortgage loans reclassified to held for sale		—				29,755				—				—				—				29,755				—
Adjusted Revenue Excluding Net loss on mortgage loans reclassified to held for sale (non-GAAP)	$	202,488			$	193,281			$	178,355			$	172,351			$	170,517			$	395,769			$	336,969
Adjusted Efficiency Ratio (non-GAAP)		53.22	%			54.21	%			54.65	%			54.56	%			53.99	%			53.70	%			54.26	%

⁽¹⁾ Non-core expenses in the Three Months Ended December 31, 2025 included a $0.7 million reduction in the FDIC special assessment
⁽²⁾ Non-core expenses in the Three Months Ended September 30, 2025 included $0.6 million of severance costs

For more information, contact:
Nicole M. Weaver, First Vice President and Director of Corporate Administration
765-521-7619
http://www.firstmerchants.com

FAQ

How did First Merchants (NASDAQ: FRME) perform in Q2 2026?

First Merchants reported Q2 2026 net income available to common stockholders of $43.5 million, or $0.70 diluted EPS. According to First Merchants, adjusted diluted EPS was $0.74, with net interest income of $158.9 million and net interest margin of 3.38%.

Why did First Merchants’ (FRME) credit loss provision increase in Q2 2026?

The Q2 2026 provision for credit losses rose to $33.0 million due to two commercial lending relationships placed on nonaccrual. According to First Merchants, these credits totaled $41.8 million in balances, with associated reserves of $29.7 million recorded for potential losses.

What were First Merchants’ loan and deposit growth figures in Q2 2026 (FRME)?

Loans reached $15.5 billion, with linked-quarter growth of $268.8 million and organic growth of $221.7 million. According to First Merchants, total deposits were $16.8 billion, increasing $267.8 million on a linked-quarter basis and $2.0 billion year-over-year.

How strong was First Merchants’ capital position at June 30, 2026?

First Merchants reported a common equity tier 1 capital ratio of 11.16% and a total risk-based capital ratio of 12.98%. According to First Merchants, the tangible common equity ratio was 8.99%, supporting continued growth, risk absorption capacity, and regulatory capital compliance.

Did First Merchants (FRME) repurchase shares in 2026 and how much?

Year-to-date through Q2 2026, First Merchants repurchased 976,631 common shares for $38.3 million. According to First Merchants, Q2 2026 activity included 336,145 shares repurchased for $13.4 million, reflecting ongoing capital return to common stockholders via buybacks.

What happened to First Merchants’ nonperforming assets in Q2 2026?

Nonperforming assets increased to 0.56% of total assets in Q2 2026, up from 0.43% in the prior quarter. According to First Merchants, this mainly reflects two commercial relationships placed on nonaccrual, totaling $41.8 million in outstanding balances.

When is the First Merchants (FRME) Q2 2026 earnings call and how can investors access it?

First Merchants scheduled its Q2 2026 earnings conference call for 9:00 a.m. ET on Thursday, July 23, 2026. According to First Merchants, investors must register via the provided phone link or access the webcast and slides through the specified online media-server address.