What is First Merchants' AI strategy?
First Merchants has not published an AI strategy; its stated strategy is relationship growth 'enhanced through smarter use of technology', the wording in its September 23, 2026 investor presentation, which lists technology alongside people, clients and products as the four areas of focus. The AI on the record is short. Tony Schoen, president of specialty lending, said in June 2026 that the bank had rolled out Microsoft Copilot 'through the entire organization' and was using AI as a 'front side sifter' for incoming mortgages, aiming to lift volume from about $1 billion to $1.4 billion with the same staff. The 2025 10-K, filed February 25, 2026 and the first annual report to mention AI, says the Corporation and its vendors use and develop machine-learning and generative AI tools under governance, risk-management and control frameworks, and that failing to embrace AI could be a competitive disadvantage. The 2026 earnings calls and 10-Qs do not mention AI, no AI leader or budget is named, and Mike Stewart, who becomes CEO on January 1, 2027, repeated 'smarter use of technology' when his appointment was announced on October 1, 2026.[1][2][3][4][5][6]
Data as of Oct 16, 2026 · First Merchants profile updated Oct 13, 2026 · 14 sources cited on this page · 140 banks profiled on this site · Markdown
What has First Merchants said about AI and technology?
In date order. Earnings-call wording is from the transcripts the profile cites; filings from SEC EDGAR.
| Item | What it says | Who | Date |
|---|---|---|---|
| Private Wealth report on generative AI | Investment-team view of generative AI as 'this significant secular trend' for investors (data centers, GPUs, power), with a caution that 'exuberant markets driven by powerful narratives' can make valuation an afterthought; it does not describe the bank's own AI use | First Merchants Private Wealth Advisors | June 28, 2024[7] |
| Q4 2025 call | Each line of business updated its strategy around growing organically 'through deeper relationships and smarter use of technology for enhanced client relationship and internal efficiencies'; no AI mentioned | Mike Stewart, President | January 27, 2026[8] |
| 2025 10-K risk factor | The Corporation and its vendors 'use and develop artificial intelligence technologies, including machine-learning and generative artificial intelligence tools'; governance, risk-management and control frameworks oversee AI use; failure to embrace AI 'may result in a competitive disadvantage' | First Merchants Corporation | February 25, 2026[3] |
| Q1 2026 call | The rest of 2026 is about 'our people, our clients, our products, and technology'; no AI mentioned | Mark Hardwick, CEO | April 23, 2026[9] |
| Copilot and mortgage AI | 'We've rolled out Microsoft Copilot through the entire organization'; AI used as a 'front side sifter when mortgages come in' to take volume from about $1 billion to $1.4 billion with the same staff; 'not eliminating jobs' | Tony Schoen, President of Specialty Lending | June 5, 2026[2] |
| Q2 2026 call | Focus on 'people, clients, products, and technology investments'; quarterly expense run-rate held at $111 million to $114 million including added hiring and technology spending; no AI mentioned | Mark Hardwick, CEO; Michele Kawiecki, CFO | July 23, 2026[10] |
| Fixed-income investor presentation | Strategy 'enhanced through smarter use of technology'; 'TECHNOLOGY' one of four focus areas; business-line advantages listed include 'Scalable technology and relationship data integration' and 'Industry-leading technology with robust digital solutions' | First Merchants Corporation | September 23, 2026[1] |
| CEO succession | Hardwick retires effective January 1, 2027 after 29 years and 18 acquisitions; Stewart's strategy: 'more and deeper relationships, smarter use of technology, and customer-centric products'; about 2,200 employees and nearly 300,000 clients | Mike Stewart; First Merchants board | October 1, 2026[6][11][12] |
What has First Merchants not disclosed about AI?
No AI leader, AI budget, use-case count or savings target is public. The phrase 'artificial intelligence' appears 13 times in the 2025 10-K, all within one risk factor, and not at all in the 2024 10-K or the first- and second-quarter 2026 10-Qs; the 2026 earnings calls do not use the word.[3][13][4][5]
The two concrete uses, Copilot across the organization and AI at mortgage intake, were described by one executive at a Louisville Business First roundtable, not in investor materials, and no results beyond the volume goal have been given. Schoen added that there is 'a human element to banking' he does not believe AI can replace.[2]
Technology is run by Stephan Fluhler, chief information officer since May 2014, who gives risk assessments to the board's Risk and Credit Policy Committee; the proxy names no AI-specific committee or owner. The CEO change on January 1, 2027 brings no announced change to technology or AI roles.[14][11]
What does the First Merchants profile record on this topic?
The rows below are the entries of the First Merchants AI strategy profile that bear on this page, as of Oct 13, 2026; the profile holds the full record of 21 dated moves, 11 use cases and 26 sources.
| Use case | What the record shows | Status | Source |
|---|---|---|---|
| Microsoft Copilot across the organisation | Rolled out through the entire organisation; the specialty-lending president says it has reduced administrative duplication and made work easier. | In production | [2] |
| AI risk factor and AI governance frameworks | The 2025 10-K names regulatory scrutiny, biased algorithms or datasets, output errors, weak control over third-party models' training data and updates, and data leakage as AI risks, and says governance, risk-management and control frameworks oversee AI use. | In production | [3] |
| Board-approved information security programme | Built on the NIST Cybersecurity Framework with FS-ISAC participation, annual risk assessments, an incident response plan, ongoing tabletop exercises and a CISO who has been at the bank 19 years; the AI risk factor adds higher frequency and severity of cyberattacks as an AI-related risk. | In production | [3] |
| Date | Move | Detail | Source |
|---|---|---|---|
| Oct 1, 2026 | CEO succession: Stewart to replace Hardwick on 1 January 2027 | Hardwick, with 29 years at the bank and 18 acquisitions, retires; Stewart, 18-plus years at the bank and its president, says strategy is 'more and deeper relationships, smarter use of technology, and customer-centric products'. | [11][6] |
| Jul 23, 2026 | Q2 2026 call: technology investments and hiring in the expense run-rate | Hardwick closes with a focus on 'people, clients, products, and technology investments'; CFO Michele Kawiecki holds quarterly expenses at $111 million to $114 million with some added hiring and technology spending, and integration expense savings are complete. AI is not mentioned. | [10] |
| Jun 5, 2026 | Copilot rolled out firm-wide; AI at mortgage intake | At a Louisville Business First roundtable, specialty-lending president Tony Schoen says Microsoft Copilot has been rolled out through the entire organisation and AI is being used to sift incoming mortgages, targeting $1.4 billion of volume with the same staff. | [2] |
| Feb 25, 2026 | 2025 10-K adds an AI risk factor | First annual report to mention AI: the Corporation and its vendors use and develop machine-learning and generative AI tools; governance, risk-management and control frameworks oversee AI use; failing to embrace AI or achieve its expected productivity could be a competitive disadvantage. | [3] |
| Jan 27, 2026 | Q4 2025 call: 'smarter use of technology' | President Mike Stewart says each line of business updated its strategy around growing organically 'through deeper relationships and smarter use of technology for enhanced client relationship and internal efficiencies'; CEO Mark Hardwick reports record 2025 net income of $224.1 million, diluted EPS of $3.88 and a 54.5% efficiency ratio. No AI is mentioned. | [8] |
Does First Merchants have an AI strategy?
Not a published one. Its strategy, repeated in the September 2026 investor presentation and by incoming CEO Mike Stewart, is organic relationship growth through 'smarter use of technology'. The AI uses on the record are Microsoft Copilot rolled out across the organization and AI to screen incoming mortgages, both described by specialty-lending president Tony Schoen in June 2026, and a 2025 10-K risk factor.
What AI tools does First Merchants Bank use?
Microsoft Copilot, which Tony Schoen said in June 2026 had been rolled out through the entire organization and reduced administrative duplication, and AI used as a front-end sifter for incoming mortgage applications. The 2025 10-K adds that the Corporation and its vendors use and develop machine-learning and generative AI tools, without naming them.
Did First Merchants mention AI on its 2026 earnings calls?
No. The Q4 2025, Q1 2026 and Q2 2026 calls speak of 'smarter use of technology' and 'technology investments' but do not mention AI, and the first- and second-quarter 2026 10-Qs contain no AI language. The only formal AI disclosure is the risk factor in the 2025 10-K, filed February 25, 2026.
Will the new CEO change First Merchants' approach to AI?
Nothing announced suggests so. Mike Stewart, president and CEO from January 1, 2027, described the strategy on October 1, 2026 as 'more and deeper relationships, smarter use of technology, and customer-centric products'. He has been with the bank for more than 18 years and was the executive who framed the 'smarter use of technology' strategy on the January 2026 call.
Who is responsible for AI at First Merchants?
No one is named. Stephan Fluhler is chief information officer and reports on technology risk to the board's Risk and Credit Policy Committee, and Eva Scurlock became chief risk officer in January 2026. The 10-K says governance, risk-management and control frameworks oversee AI use but does not name an owner.
- First Merchants Corporation Fixed Income Investor Presentation, September 2026 (Free Writing Prospectus)
- Executive Insights: Experts weigh in on state of crypto, AI and what the business community needs most from banks right now
- First Merchants Corporation Annual Report on Form 10-K for the fiscal year ended December 31, 2025
- First Merchants Corporation Quarterly Report on Form 10-Q for the quarter ended March 31, 2026
- First Merchants Corporation Quarterly Report on Form 10-Q for the quarter ended June 30, 2026
- First Merchants Bank CEO Mark Hardwick to Retire at the End of 2026 and President Mike Stewart to Become President and CEO
- The Rise of Generative AI (Private Wealth Perspectives)
- First Merchants (FRME) Q4 2025 Earnings Transcript
- First Merchants (FRME) Q1 2026 Earnings Transcript
- Earnings call transcript: First Merchants misses Q2 2026 estimates as shares fall
- First Merchants Corporation Form 8-K: CEO retirement and succession
- First Merchants CEO Hardwick to retire, Stewart named successor
- First Merchants Corporation Annual Report on Form 10-K for the fiscal year ended December 31, 2024
- First Merchants Corporation 2026 Proxy Statement
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