FIRST MERCHANTS CORP recently released its 10-Q report. First Merchants Corporation is the financial holding company for First Merchants Bank, which provides commercial and consumer banking services. Its offerings include deposit products, cards, mortgage and agricultural lending, treasury management, and wealth management services, with banking locations in Indiana, Ohio, and Michigan and delivery through electronic and mobile channels. Founded in 1893 and headquartered in Muncie, Indiana, the company also provides brokerage, investment management, private banking, fiduciary estate, and financial planning services.
In Item 2, management said the company’s interest-rate sensitivity remained positive in rising-rate scenarios and negative in falling-rate scenarios. As of June 30, 2026, an immediate 200-basis-point increase was estimated to lift net interest income by 2.6% over a 12-month horizon, while a 100-basis-point increase was estimated to add 1.5%. On the downside, a 100-basis-point drop was estimated to reduce net interest income by 1.6%, and a 200-basis-point drop by 3.8%.
The comparable figures at December 31, 2025 were larger in both directions: a 200-basis-point increase was estimated to raise net interest income by 4.5%, and a 100-basis-point increase by 2.4%. A 100-basis-point decline was estimated to cut net interest income by 2.8%, while a 200-basis-point decline implied a 5.6% reduction. Management said the balance sheet assumptions used in the shock scenarios were consistent with those used in the base-case simulation. Following these announcements, the company's shares moved -0.49%, and are now trading at a price of $43.03. If you want to know more, read the company's complete 10-Q report here.
