First Merchants Announces $100 Million Subordinated Notes Offering

MUNCIE, Ind., Sept. 23, 2026 /CourierPR/ -- First Merchants Corporation has announced the pricing of a $100 million offering of 6.750% Fixed-to-Floating Rate Subordinated Notes due 2036. The notes will initially bear interest at 6.750% per annum from and including September 25, 2026, to, but excluding, October 1, 2031. Interest will be payable semiannually in arrears, commencing on April 1, 2027. Starting October 1, 2031, the interest rate on the notes will reset quarterly to a floating rate per annum equal to the Three-Month Term SOFR plus 202 basis points, with interest payable quarterly in arrears.

The company may redeem the notes, in whole or in part, on October 1, 2031, and on any interest payment date thereafter at a price equal to 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest thereon. The notes will mature on October 1, 2036, if they are not earlier redeemed.

First Merchants Corporation intends to use the net proceeds from this offering for general corporate purposes, including the repurchase of its common shares. The notes are intended to qualify as Tier 2 capital for regulatory purposes.

The offering is expected to close on or about September 25, 2026, subject to the satisfaction of customary closing conditions. Piper Sandler is acting as the sole book-running manager for the offering, while Keefe, Bruyette & Woods, A Stifel Company, Hovde Group, and Brean Capital are serving as co-managers.

This press release is neither an offer to sell nor a solicitation of an offer to purchase any securities of the company. There will be no sale of securities in any jurisdiction in which such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Any offer to sell or solicitation of an offer to purchase securities of the company will be made only pursuant to a prospectus supplement and prospectus filed with the Securities and Exchange Commission (SEC).

This press release is subject to the provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements in this press release are subject to risks, uncertainties, and other factors that may cause actual results to differ materially from those expressed or implied.