Company: FRME
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000712534-25-000117
Chunk: 161

Company: FIRST MERCHANTS CORP
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 8
Chunk 161
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 CONDENSED FINANCIAL STATEMENTS(table dollar amounts in thousands, except share data)(Unaudited)

NOTE 11

INCOME TAXThe following table summarizes the major components creating differences between income taxes at the federal statutory and the effective tax rate recorded in the consolidated condensed statements of income for the three months ended March 31, 2025 and 2024:Three Months Ended March 31,20252024Reconciliation of Federal Statutory to Actual Tax Expense:Federal statutory income tax at 21%$13,275 $11,501 Tax-exempt interest income(4,598)(4,352)Non-deductible FDIC premiums129 139 Tax-exempt earnings and gains on life insurance(458)(334)Tax credits(903)(304)State Income Tax307 34 Other125 141 Actual Tax Expense$7,877 $6,825 Effective Tax Rate12.5 %12.5 %

NOTE 12

NET INCOME PER COMMON SHAREBasic net income per common share is computed by dividing net income available to common stockholders by the weighted-average common shares outstanding during the reporting period.  Diluted net income per common share is computed by dividing net income available to common stockholders by the combination of the weighted-average common shares outstanding during the reporting period and all potentially dilutive common shares.  Potentially dilutive common shares include stock options and RSAs issued under the Corporation's share-based compensation plans.  Potentially dilutive common shares are excluded from the computation of diluted earnings per common share in the periods where the effect would be antidilutive.The following tables reconcile basic and diluted net income per common share for the three months ended March 31, 2025 and 2024. Three Months Ended March 31, 20252024 Net Income Available to Common StockholdersWeighted-Average Common SharesPer ShareAmountNet Income Available to Common StockholdersWeighted-Average Common SharesPer ShareAmountNet income available to common stockholders$54,870 57,969,053 $0.95 $47,472 59,066,789 $0.80 Effect of potentially dilutive stock options and restricted stock awards273,179  206,225  Diluted net income per common share$54,870 58,242,232 $0.94 $47,472 59,273,014 $0.80 RSAs excluded from the diluted average