First Merchants hands CEO role to Michael J. Stewart amid $100 million notes sale

First Merchants, the Indiana-based holding company for First Merchants Bank, is handing the chief executive role to Michael J. Stewart and has issued US$100 million of 6.750% subordinated notes, Simply Wall Street reported on October 7, 2026.

The outlet described both steps as signaling continuity rather than a break with the bank's current strategy, noting that a long runway to 2027 and an experienced management team limit the risk of near-term disruption. The notes add Tier 2 capital, giving the lender more room on lending and balance sheet mix while fixing a known funding cost.

First Merchants operates across Indiana, Ohio and Michigan, relying on loan demand, deposit pricing discipline and wealth management fees. Analysts expect earnings to grow 21.5% a year, though revenue growth is forecast to trail the broader US market.

Shares have slipped about 5% over the past 30 days despite the profit growth forecasts and a 3.73% dividend yield. Simply Wall Street said the open questions are a relatively low return on equity and a price-to-earnings ratio that screens above many bank peers. Two fair value estimates from the outlet's user community range from roughly US$47 to about US$72.90.

This story was first reported by Simply Wall Street.