Company: FRME
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000712534-25-000117
Chunk: 174

Company: FIRST MERCHANTS CORP
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 8
Chunk 174
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469 Tangible net income available to common stockholders (non-GAAP)$56,545 $49,487 Per Share Data:Diluted net income per common share (GAAP)$0.94 $0.80 Diluted tangible net income per common share (non-GAAP)$0.96 $0.83 Ratios:Return on average capital (GAAP)9.38 %8.47 %Return on average tangible capital (non-GAAP)14.12 %13.21 %Return on average assets (GAAP)1.21 %1.04 %Return on average tangible assets (non-GAAP)1.28 %1.12 %

Return on average tangible capital is tangible net income available to common stockholders (annualized) expressed as a percentage of average tangible capital.  Return on average tangible assets is tangible net income available to common stockholders (annualized) expressed as a percentage of average tangible assets.

NET INTEREST INCOME

Net interest income is the most significant component of our earnings, comprising 81.3 percent of revenues for the three months ended March 31, 2025.  Net interest income and margin are influenced by many factors, primarily the volume and mix of earning assets, funding sources, and interest rate fluctuations.  Other factors include the level of accretion income on purchased loans, prepayment risk on loan and investment-related assets, and the composition and maturity of earning assets and interest-bearing liabilities.  Loans typically generate more interest income than investment securities with similar maturities.  Funding from customer deposits generally costs less than wholesale funding sources. Factors such as general economic activity, Federal Reserve Board monetary policy, and price volatility of competing alternative investments, can also exert significant influence on our ability to optimize the mix of assets and funding and the net interest income and margin.

Net interest income is the excess of interest received from earning assets over interest paid on interest-bearing liabilities.  For analytical purposes, net interest income is also presented on an FTE basis in the table that follows to reflect what our tax-exempt assets would need to yield in order to achieve the same after-tax yield as a taxable asset.  The federal statutory rate of 21 percent was used for 2025 and 2024.  The 

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PART I: FINANCIAL INFORMATIONITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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