# First Merchants Q3 2026 Earnings Results

> First Merchants reports 11% higher net income and 3.44% net interest margin as CEO steps down.
- Title: First Merchants Q3 2026 Earnings Results · The Motley Fool
- Summary: First Merchants reports 11% higher net income and 3.44% net interest margin as CEO steps down. First Merchants (FRME) reported Q3 2026 net income of $67.8…
- Keywords: first merchants, frme, q3 2026, earnings call, net income, net interest margin, loan portfolio, deposit growth, nonperforming assets, share repurchases, chief executive officer, president
- Source: The Motley Fool — https://fool.com/earnings/call-transcripts/2026/10/22/first-merchants-frme-q3-2026-earnings-call-transcript
- Author: Motley Fool Transcribing
- Published: 2026-10-22T16:54:17+00:00
- Read time: 2 min
- Topics: first merchants, frme, q3 2026, earnings call, net income, net interest margin, loan portfolio, deposit growth, nonperforming assets, share repurchases, chief executive officer, president
## Q3 2026 Results
First Merchants reported net income of $67.8 million, or $1.09 per diluted share, representing an 11% increase from Q3 2025.
## Net Interest Margin
Net interest margin expanded to 3.44%, increasing 6 basis points from the prior quarter and 20 basis points from Q3 2025.
## Loan Portfolio Growth
Loan portfolio reached $15.6 billion with 1.8% annualized linked-quarter growth.
## Deposit Growth
Deposits grew 4.2% annualized linked-quarter to $16.9 billion, driven by private wealth and consumer banking.
## Nonperforming Assets
Nonperforming assets remained stable at 0.57% of total assets, unchanged from 56 basis points in Q2 2026.
## Credit Losses
Net charge-offs totaled $29.4 million, or 75 basis points of average loans annualized, primarily from two commercial credits.
## Capital Position
Total risk-based capital ratio increased to 13.58%, up from 13.06% in the prior quarter.
## Share Repurchases
Company repurchased $12 million in common stock during Q3 2026, bringing year-to-date total to $50.3 million.
## CEO Transition
CEO Mark Hardwick will retire at end of 2026, with President Mike Stewart taking over as chief executive.
## Loan Yield
Yield on new and renewed loans reached 6.34% during Q3 2026, providing a tailwind for portfolio yield.
## Credit Guidance
Credit loss guidance narrowed to 38 to 40 basis points for full year 2026, down from previous range.
## Marketing Strategy
Company increased marketing investment, resulting in higher-than-guided noninterest expense this quarter.
## Deposit Pricing
Rate paid on deposits increased 9 basis points to 2.16% during Q3 2026.
## Subordinated Debt
Completed $100 million subordinated debt issuance in late September 2026, adding 60 basis points to risk-based capital ratio.
## Tangible Equity
Tangible common equity ratio decreased to 8.83% due to interest rate impacts on accumulated other comprehensive loss.
## Q4 Outlook
Management expects loan growth to return to mid-single digit rate in Q4 2026 as credit exits diminish.
## Key takeaway

First Merchants (FRME) reported Q3 2026 net income of $67.8 million, 11% higher than 2025, with CEO Mark Hardwick retiring and President Mike Stewart taking over.