The National Community Reinvestment Coalition (NCRC) and First Merchants Bank announced a new $2.02 billion Community Benefits Agreement (CBA), reinforcing the bank’s long-standing commitment to advancing financial wellness of the communities it serves.
The new five-year agreement, which runs from January 1, 2026 through December 31, 2030, builds on First Merchants Bank’s previous community commitments and reflects the bank’s continued growth and expanded footprint across Indiana, Michigan and Ohio.
“First Merchants Bank has been one of our most committed and proactive partners since the very beginning of our relationship in 2019,” said Jesse Van Tol, president and CEO of NCRC. “Now, with their acquisition of First Savings Financial Group and the launch of a second five-year Community Benefits Plan, it will be a partnership that spans more than a decade. First Merchants sets the standard for what community-centered banking can look like and continues to demonstrate that genuine community reinvestment is not a compliance exercise — it is a core part of who they are. NCRC is proud to stand alongside them.”
“This agreement reflects our unwavering commitment to listen first and act with purpose,” said Mark Hardwick, chief executive officer of First Merchants. “By deepening our investments and partnerships, we are expanding access to financial prosperity and helping individuals, families and businesses thrive—especially in communities that have historically faced barriers to financial services.”
The agreement builds on the bank’s prior Community Benefits Agreement established in 2020 and expanded in 2022, reflecting continued commitment to impact across its communities.
$2.02 Billion Commitment Focused on Community Growth
The Community Benefits Agreement includes the following five-year commitments:
- $650 million in mortgage lending for low- to moderate-income (LMI) borrowers and communities
- $464 million in small business lending in LMI and rural communities
- $700 million in community development lending
- $200 million in community development investments
- $6 million in philanthropy
These commitments will expand access to homeownership, support small business growth, drive economic development and strengthen financial stability across the bank’s regional footprint.
Driven by Community Collaboration
The agreement was developed through a collaborative process with NCRC and community-based organizations, including listening sessions held across First Merchants’ markets to better understand evolving community needs.
“NCRC and its members value partnerships that lead to meaningful, measurable impact,” said Michele Perez, chief of community engagement and institutional accountability at NCRC. “This agreement demonstrates how thoughtful collaboration can direct critical resources to strengthen neighborhoods, increase homeownership opportunities and support long-term economic growth.”
Building on a Proven Foundation
The 2026–2030 agreement continues First Merchants’ commitment towards:
- Expanding access to affordable banking products and financial education
- Supporting housing stability and community revitalization
- Increasing lending and investment in underserved communities
- Strengthening partnerships with nonprofit organizations and local leaders
- Advancing employee engagement through community service and leadership
A Continued Commitment to Financial Wellness
Grounded in its values and long-term strategy, First Merchants remains focused on helping people prosper throughout their financial journey.
“As we look ahead, this agreement provides a clear roadmap for how we will continue to invest in the success of our communities,” said Scott McKee, chief corporate social responsibility officer. “Together with our partners, we are committed to creating opportunities that empower individuals, strengthen businesses and build vibrant communities.”
Since 2016, NCRC has facilitated more than 30 community benefits plans with bank groups that have committed more than $600 billion for mortgage, small business and community development lending, investments and philanthropy in LMI and under-resourced communities.
The following NCRC member organizations signed on to the plan:
Bridging Communities, Inc.
Foundation for Pops
Greater Indy Habitat for Humanity
Homes on the Hill, CDC
Homestead Resources
Indianapolis Neighborhood Housing Partnership
Indianapolis Neighborhood Resource Center
Life Remodeled
Northwest Indiana Reinvestment Alliance
Prosperity Indiana
South Bend Heritage Foundation
Wayne Metropolitan Community Action Agency
U-SNAP-BAC Nonprofit Housing Corp.
“This renewal is an essential tool in the community chest that strengthens and empowers communities through strong partnerships,” said Phyllis Edwards, NCRC board member and executive director, Bridging Communities, Inc.
“The updated Community Benefits Agreement underscores First Merchants Bank’s commitment to being more than a financial institution—it is a community partner. Strategic investments in housing stability, financial capability and community development create lasting change and expand opportunities for those who need them most. We commend First Merchants Bank for recognizing that thriving communities are the true measure of a successful investment,” said Lakesha Hancock, executive director, Foundation for Pops.
“It’s been my pleasure to work with First Merchants since they initially began their community-based outreach and supportive programs. They have performed in an exemplary manner and have significantly contributed to the mission of serving LMI communities. They are committed to the CBA agreement as evidenced by their performance and their people,” said Steve Torsell, executive director, Homes on the Hill CDC.
“Greater Indy Habitat for Humanity sees the CBA with First Merchants and NCRC as another positive step toward providing direct support to our Indianapolis region,” said Jim Morris, president and CEO, Greater Indy Habitat for Humanity.
“This CBA with First Merchants and NCRC demonstrates First Merchants’ deep commitment to community across their footprint. Our experience at INHP is that First Merchants demonstrates this commitment even beyond what is reflected in this CBA, consistently stepping up in a variety of creative and generous ways in pursuit of our shared belief that every household deserves the opportunity to thrive,” said Gina Miller, president and CEO, Indianapolis Neighborhood Housing Partnership.
Summary of the Updated Community Benefits Agreement Between the National Community Reinvestment Coalition and First Merchants Bank
First Merchants Bank will lend, invest or donate more than $2 billion over five years (2026–2030) to support low- and moderate-income (LMI) borrowers and communities across its regional market areas in Indiana, Ohio and Michigan. This represents an increase in their commitments from the bank’s previous CBA established in 2022. The agreement was developed in collaboration with NCRC and its members following listening sessions to better understand current community needs.
Mortgage Lending
Community Benefits Commitment: $650 million over 5 years (2026-2030)
First Merchants has updated and increased their home purchase lending, committing a total of $650 million. The bank will pursue an approximate 5-year accumulated increase goal of 10% growth in mortgage originations to underserved borrowers.
First Merchants will leverage partnerships with nonprofit housing developers, Community Development Financial Institutions and NCRC to identify and support borrowers who would benefit from their mortgage products and programs. The bank will continue supporting credit counseling, housing counseling and homebuyer education through sponsorships, referrals and direct engagement with counseling agencies, while also engaging with local organizations to promote homeownership, financial literacy and equitable access to mortgage credit. First Merchants will also continue to employ community home loan officers who facilitate home buyer education and participate in community-based redevelopment efforts.
Small Business Lending
Community Benefits Commitment: $464 million over 5 years (2026-2030)
First Merchants will provide $464 million in small business lending in LMI census tracts and to businesses with a gross annual revenue under $1 million. The bank commits to achieving an approximate 10% increase in small business lending originations to businesses with less than $1 million in revenue and to businesses located in LMI census tracts over the life of the agreement. The bank commits to supporting small businesses across its regional markets and to expanding access to capital for entrepreneurs in underserved communities.
Community Development Lending
Community Benefits Commitment: $700 million over five years (2026-2030)
First Merchants will originate $700 million in community development lending, representing approximately 2.9 percent of combined assets, to support affordable housing, economic development, revitalization efforts and services targeted to LMI consumers and communities. The bank will continue to act as an active partner in community development lending initiatives designed to meet local credit needs and will dedicate resources to organizations that offer alternatives to payday lending.
Community Development Investments
Community Benefits Commitment: $200 million over five years (2026-2030)
First Merchants will invest $200 million in community development initiatives, representing approximately 0.9 percent of combined assets, with investments driven by identified community needs and opportunities. These investments will support affordable housing, economic development and community revitalization benefiting LMI communities and may include partnerships with CDFIs, tax credit investments such as LIHTC and NMTC, municipal bonds, loan pools and other qualifying community development activities.
Philanthropy
Community Benefits Commitment: $6 million over five years (2026-2030)
The agreement includes $6 million in philanthropic support through grants, sponsorships and community engagement initiatives focused on LMI communities and individuals. First Merchants will support organizations addressing workforce training, capacity building, economic prosperity and housing stability.
The bank will also provide multi-year funding to support affordable housing development and pre-development activities, expand support for housing counseling organizations and encourage employees to engage in volunteer service and nonprofit board participation.
Throughout the term of the agreement, First Merchants intends to engage with community stakeholders through individual conversations, small group discussions or other forums to better understand local conditions and emerging needs.
Branch & Banking Product Commitments
First Merchants will make reasonable efforts to maintain its current branch distribution levels and continue investing in Community Banking Centers to expand access to banking services in LMI communities while working collaboratively with community stakeholders to increase awareness, trust and utilization of these centers.
First Merchants will also continue reviewing and developing products to address community needs, including down payment assistance programs, home improvement grants, small-dollar credit-building loans and flexible underwriting approaches that incorporate alternative credit data. The bank will maintain affordable account offerings and provide education on fraud prevention and financial capability.
Ongoing Engagement Commitments
First Merchants will engage community stakeholders throughout the life of the agreement through ongoing conversations, listening sessions and partnerships to better understand local conditions and emerging needs.
Progress made under the agreement will be overseen by an advisory board composed of community leaders who will provide accountability, strategic guidance and regular updates on performance.
