Company: FRME
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000712534-25-000197
Chunk: 248

Company: FIRST MERCHANTS CORP
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 2
Chunk 248
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 decreased $40.7 million, reflecting lower rates across all deposit categories. The total cost of interest-bearing liabilities decreased 41 basis points, to 2.83 percent for the nine months ended September 30, 2025, down from 3.24 percent for the same period in 2024. This reduction in funding costs more than offset the decline in asset yields and resulted in an 18 basis point improvement in the FTE net interest spread, which increased to 2.66 percent from 2.48 percent. 

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

The following tables present the Corporation’s average balance sheet, interest income/interest expense, and the average rate as a percent of average earning assets/liabilities for the three and nine months ended September 30, 2025 and 2024.

 (Dollars in Thousands)Three Months EndedSeptember 30, 2025September 30, 2024Average BalanceInterest Income /ExpenseAverageRateAverage BalanceInterest Income /ExpenseAverageRateAssets: Interest-bearing deposits$229,271 $1,676 2.92 %$252,113 $2,154 3.42 %Federal Home Loan Bank stock47,278 1,092 9.24 41,730 855 8.20 Investment Securities: (1)Taxable1,567,594 8,288 2.11 1,789,526 9,263 2.07 Tax-Exempt (2)2,036,379 15,772 3.10 2,226,823 17,100 3.07 Total Investment Securities3,603,973 24,060 2.67 4,016,349 26,363 2.63 Loans held for sale26,165 401 6.13 31,991 483 6.04 Loans: (3)Commercial9,165,241 158,469 6.92 8,699,733 164,922 7.58 Real estate mortgage2,217,524 25,676 4.63 2,183,095 24,333 4.46 HELOC and installment851,239 15,860 7.45 832,222 16,942