Company: FRME
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000712534-25-000171
Chunk: 235

Company: FIRST MERCHANTS CORP
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 2
Chunk 235
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 federal statutory rate of 21 percent, are non-GAAP financial measures used by management to assess what our tax-exempt assets would need to yield in order to achieve the same after-tax yield as a taxable asset. Management believes that it is standard practice in the banking industry to present net interest income and net interest margin on an FTE basis and that it provides useful information for management and investors for peer comparison purposes. Non-GAAP financial measures such as tangible common equity, tangible assets, tangible common equity to tangible assets, tangible book value per common share, tangible net income available to common stockholders, diluted tangible net income per common share, return on average tangible capital and return on average tangible assets 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 losses in stockholders' equity.  Disclosure of these measures also allows analysts and banking regulators to assess our capital adequacy on these same bases.

42

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

ADJUSTED NET INCOME AND DILUTED EARNINGS PER COMMON SHARE - NON-GAAP(Dollars in Thousands, Except Per Share Amounts)Three Months EndedSix Months EndedJune 30,March 31,June 30,June 30,June 30,20252025202420252024Net Income Available to Common Stockholders (GAAP)$56,363 $54,870 $39,456 $111,233 $86,928 Adjustments:Net realized losses on sales of available for sale securities1 7 49 8 51 Non-core expenses (1)— — — — 3,481 Tax on adjustments— (2)(12)(2)(860)Adjusted Net Income Available to Common Stockholders (non-GAAP)$56,364 $54,875 $39,493 $111,239 $89,600 Average Diluted Common Shares Outstanding (in thousands)57,773 58,242 58,328 58,005 58,800 Diluted Earnings Per Common Share (GAAP)$0.98 $0.94 $