Company: FRME
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000712534-25-000197
Chunk: 64

Company: FIRST MERCHANTS CORP
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 64
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 have any unrecognized compensation expense related to stock options as of September 30, 2025.

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 and nine months ended September 30, 2025 and 2024. Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Reconciliation of Federal Statutory to Actual Tax Expense:Federal statutory income tax at 21%$13,709 $11,833 $40,659 $32,572 Tax-exempt interest income(4,640)(4,409)(13,881)(13,157)Non-deductible FDIC premiums171 180 462 462 Tax-exempt earnings and gains on life insurance(350)(579)(1,209)(1,318)Tax credits(952)(305)(2,770)(969)State Income Tax314 333 918 142 Other264 107 501 320 Actual Tax Expense$8,516 $7,160 $24,680 $18,052 Effective Tax Rate13.0 %12.7 %12.7 %11.6 %

NOTE 12

NET INCOME PER COMMON SHAREBasic net income per common share is calculated by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the reporting period.Diluted net income per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted. It is computed by dividing net income available to common stockholders by the sum of the weighted-average common shares outstanding and the effect of all potentially dilutive common shares outstanding during the period.Potentially dilutive common shares include stock options and RSAs granted under the Corporation’s share-based compensation plans. These securities are included in the diluted earnings per share calculation only when their effect is dilutive. Securities that would increase earnings per share are considered anti-dilutive and are therefore excluded from the computation of diluted earnings per share for the applicable periods.The following tables reconcile basic and diluted net income per common share for the three and nine months ended September 30, 2025 and 2024. Three Months Ended September 30, 20252024 Net Income Available to Common StockholdersWeighted-Average Common SharesPer ShareAmountNet Income