Company: FRME
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000712534-25-000171
Chunk: 200

Company: FIRST MERCHANTS CORP
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 8
Chunk 200
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 %5.69 %Interest Expense / Average Earning Assets2.25 %2.53 %Net Interest Margin (FTE) (5)3.25 %3.16 %(1) Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments.  Annualized amounts are computed utilizing a 30/360 day basis.(2)  Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2025 and 2024.  These totals equal $6,199 and $5,859 for the three months ended June 30, 2025 and 2024, respectively.  (3) Nonaccruing loans have been included in the average balances.(4) Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.(5) Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.

47

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

(Dollars in Thousands)Six Months EndedJune 30, 2025June 30, 2024Average BalanceInterest Income /ExpenseAverageRateAverage BalanceInterest Income /ExpenseAverageRateAssets:  Federal Funds SoldInterest-bearing deposits$273,200 $4,264 3.12 %$449,173 $9,488 4.22 %Federal Home Loan Bank stock45,296 2,080 9.18 41,757 1,714 8.21 Investment Securities: (1) Taxable1,620,005 16,638 2.05 1,785,903 17,799 1.99 Tax-Exempt (2)2,044,489 31,687 3.10 2,243,286 34,461 3.07 Total Investment Securities3,664,494 48,325 2.64 4,029,189 52,260 2.59 Loans held for sale23,190 708 6.11 25,184 759 6.03 Loans: (