Company: FRME
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000712534-25-000058
Chunk: 200

Company: FIRST MERCHANTS CORP
Filing Date: 2025-02-24
Form: 10-K
Item: Item 7
Chunk 200
---
losses on the sales of available for sale securities, acquisition-related expenses and non-core expenses, are meaningful non-GAAP financial measures for management, as they provide a meaningful foundation for period-to-period and company-to-company comparisons, which management believes will aid both investors and analysts in analyzing our financial measures and predicting future performance.  These non-GAAP financial measures are also used by management to assess the performance of the Corporation’s business, because management does not consider these items to be relevant to ongoing financial performance on a per share basis. 

Non-GAAP financial measures such as tangible common equity to tangible assets, tangible earnings per share, return on average tangible assets and return on average tangible equity are important measures of the strength of the Corporation’s capital and ability to generate earnings on tangible common equity invested by our shareholders.  These non-GAAP measures provide useful supplemental information and may assist investors in analyzing the Corporation’s financial position without regard to the effects of intangible assets and preferred stock, but do retain the effect of accumulated other comprehensive gains (losses) in shareholder’s equity.  Disclosure of these measures also allows analysts and banking regulators to assess our capital adequacy on these same bases.

ADJUSTED NET INCOME AND DILUTED EARNINGS PER COMMON SHARE - non-GAAP(Dollars In Thousands, Except Per Share Amounts)Years EndedDecember 31, 2024December 31, 2023December 31, 2022Net Income Available to Common Stockholders - GAAP$199,527 $221,911 $220,683 Adjustments:PPP loan income— (49)(3,207)Net realized losses/(gains) on sales of available for sale securities20,757 6,930 (1,194)Gain on branch sale(19,983)— — Acquisition-related expenses— — 16,531 Acquisition-related provision expense— — 16,755 Non-core expenses 1,24,243 12,682 — Tax on adjustments(1,229)(4,767)(7,084)Adjusted Net Income Available to Common Stockholders - non-GAAP$203,315 $236,707 $242,484 Average Diluted Common Shares Outstanding (in thousands)58,533 59,489 57,950 Diluted Earnings Per Common Share - GAAP$3.41 $3.73 $3.81 Adjustments:PPP loan income—