Company: FRME
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000712534-25-000171
Chunk: 211

Company: FIRST MERCHANTS CORP
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 8
Chunk 211
---
227 $17,904,307 Total Risk-Based Capital Ratio (Regulatory)13.06 %12.64 %13.31 %12.89 %Tier 1 Capital to Risk-Weighted Assets11.50 %11.39 %11.59 %11.64 %Tier 1 Capital to Average Assets10.20 %10.01 %9.96 %9.92 %CET1 Capital RatioTotal Tier 1 Capital (Regulatory)$1,814,262 $1,798,034 $1,767,468 $1,776,738 Less:  Qualified Capital Securities(25,000)— (25,000)— CET1 Capital (Regulatory)$1,789,262 $1,798,034 $1,742,468 $1,776,738 Net Risk-Weighted Assets (Regulatory)$15,771,275 $15,784,092 $15,249,287 $15,261,118 CET1 Capital Ratio (Regulatory)11.35 %11.39 %11.43 %11.64 %

(1) Includes net unrealized gains or losses on available for sale securities and amounts resulting from the application of the applicable accounting guidance for defined benefit and other postretirement plans. 

In management's view, certain non-GAAP financial measures, when taken together with the corresponding GAAP financial measures and ratios, provide meaningful supplemental information regarding our performance.  We believe investors benefit from referring to these non-GAAP financial measures and ratios in assessing our operating results, related trends and when forecasting future periods.  However, these non-GAAP financial measures should be considered in addition to, and not a substitute for or preferable to, financial measures and ratios presented in accordance with GAAP.

The Corporation's tangible common equity measures are capital adequacy metrics that are meaningful to the Corporation, as well as analysts and investors, in assessing the Corporation's use of equity and in facilitating period-to-period and company-to-company comparisons.  Tangible common equity to tangible assets ratio was 8.92 percent at June 30, 2025, and 8.81 percent at December 31, 2024.  

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