First Merchants Corporation

First Merchants Corp. is a U.S. financial holding company headquartered in Muncie, Indiana, operating through First Merchants Bank and First Merchants Private Wealth Advisors. Its core business is community banking across Indiana, Ohio, and Michigan, offering commercial and consumer banking, mortgage lending, treasury services, and wealth management through a branch network and digital channels.

— First Merchants Corporation
%
Commercial banking45% Business loans, treasury management, and deposit services for commercial clients.
Consumer banking25% Retail deposit accounts and consumer lending products for households.
Mortgage banking15% Residential mortgage origination and related lending solutions.
Private wealth management10% Investment management, fiduciary, estate, and financial planning services.
Fee and digital banking services5% Electronic delivery channels and other banking-related service fees.

The bank serves small and middle-market commercial borrowers, local businesses, and consumers across its Midwest...

  • Commercial banking clientsprimary

    Businesses that buy loans, treasury management, and deposit services to manage working capital and payments.

  • Consumer banking clientsprimary

    Households that use deposit accounts and consumer loans for everyday banking and borrowing needs.

  • Mortgage borrowerssecondary

    Individuals financing home purchases, refinancings, construction, or renovations.

  • Private wealth clientssecondary

    Individuals and families seeking investment management, fiduciary, estate, and financial planning services.

First Merchants operates primarily in Indiana, Ohio, and Michigan through 111 banking locations, making its business...

  • •111 banking locations across Indiana, Ohio, and Michigan
  • •Headquartered in Muncie, Indiana
  • •Regional Midwest footprint drives local credit and deposit exposure
  • •Branch network is supplemented by electronic and mobile channels
  • •No disclosed country-level revenue split in the report excerpts

The company is focused on preserving its community banking model by combining local decision-making with a broad...

01
Strengthen community banking franchisemedium-term

Local service and decision-making are key reasons customers choose the bank over larger competitors.

02
Improve funding and liquidity mixshort-term

Loan growth exceeding deposit growth requires careful use of brokered CDs and borrowings.

03
Invest in technology and digital deliverymedium-term

Customer expectations and competition from internet banks require stronger digital capabilities.

First Merchants faces the usual banking risks of credit losses, interest-rate sensitivity, liquidity pressure, and...

high

Credit deterioration and higher allowance needs

As a commercial and consumer lender, the bank is exposed to borrower defaults and reserve volatility.

Scope
Loan portfolio and allowance for credit losses
Materiality
high
high

Interest-rate and funding risk

Net interest income depends on deposit pricing, loan yields, and the cost of borrowings.

Scope
Deposit mix, brokered CDs, FHLB advances, repurchase agreements
Materiality
high
high

Cybersecurity and operational disruption

High transaction volumes, digital channels, and third-party providers increase attack and outage risk.

Scope
Branch network, mobile banking, core technology vendors
Materiality
high
medium

Regulatory and compliance burden

Banks operate under extensive federal and state oversight, with capital and conduct requirements.

Scope
Bank holding company and insured depository institution
Materiality
high
medium

Goodwill impairment

The company carries meaningful goodwill from acquisitions, which could be written down if fair value declines.

Scope
Goodwill balance of $712.0 million at year-end 2025
Materiality
high
Allowance for credit losses
Can materially change earnings and loan loss coverage
Goodwill impairment
Could cause a large non-cash write-down and reduce equity
Investment securities valuation
Can influence reported book value and regulatory capital
Derivative accounting
Affects other liabilities and earnings through fair value changes
Acquisition accounting and intangible amortization
Affects noninterest expense and balance sheet carrying values

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: 28/04/2026