First Merchants Corporation guided that full-year 2026 net charge-offs will trend into the 40 to 45 basis point range, largely driven by the resolution of two known credits. During the second-quarter earnings call, Chief Credit Officer John Martin detailed a $28.1 million participation in a syndicated credit to an authorized wireless retailer and a $13.7 million loan to a commercial and residential roofing contractor that moved to nonaccrual status, prompting $29.7 million in specific reserves and a $33 million total provision. CEO Mark Hardwick said the bank remains confident in its expected mid-single-digit loan growth through the end of 2026, while CFO Michele Kawiecki reiterated a quarterly expense run rate of $111 million to $114 million and projected noninterest income up 10% for the full year. The bank reported second-quarter net income of $43.5 million, or $0.70 per diluted share, with adjusted pretax pre-provision earnings of $84.6 million and a net interest margin of 3.38%.
First Merchants CorporationGuided higher net charge-offs and elevated provision due to two problem credits, pressuring earnings.