First Merchants Corp reported a $1.7 billion loan portfolio expansion at June 30, 2026, reflecting robust regional lending activity but accompanied by a rise in credit loss allowance to 1.56% of loans. Noninterest income grew notably, driven by higher customer fees including loan sales and wealth management, partially mitigating pressure from a large noninterest expense increase tied to acquisition-related integration costs. The company’s tangible common equity ratio of approximately 9% signals solid regulatory capital despite short-term margin challenges. Continued deposit base stability and Midwest economic momentum underpin growth opportunities amid typical risks related to credit quality and expense management.