Company: FRME
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000712534-25-000058
Chunk: 32

Company: FIRST MERCHANTS CORP
Filing Date: 2025-02-24
Form: 10-K
Item: Item 8
Chunk 32
---
5. LOANS AND ALLOWANCE FOR CREDIT LOSSES of these Notes to Consolidated Financial Statements. Of the total purchase price, $18.6 million has been allocated to other intangible assets.  Approximately $17.2 million was allocated to a core deposit intangible, which will be amortized over its estimated life of 10 years.  Approximately $1.4 million was allocated to a non-compete intangible, which was amortized over its estimated life of 2 years.  The remaining purchase price has been allocated to goodwill, which is not deductible for tax purposes.  Pro Forma Financial InformationThe results of operations of Level One have been included in the Corporation’s consolidated financial statements since the acquisition date.  The following schedule includes pro forma results for the year ended December 31, 2022 as if the Level One acquisition occurred as of the beginning of the periods presented. Year EndedDecember 31, 2022Total revenue (net interest income plus other income)$654,313 Net Income$221,631 Net income available to common shareholders$219,756 Earnings per share:Basic$3.72 Diluted$3.70 The pro forma information includes adjustments for interest income on loans and investment securities, interest expense on deposits and borrowings, premises expense for the banking centers acquired and amortization of intangibles arising from the transaction and the related income tax effects.  The pro forma information includes operating revenue of $56.9 million from Level One since the date of acquisition, $16.8 million of provision expense related to CECL Day 1 adjustments for PCD loans, and $16.5 million, net of tax, of acquisition-related expenses.  The pro forma information is presented for information purposes only and is not indicative of the results of operations that actually would have been achieved had the acquisition been consummated as of January 1, 2022, nor is it intended to be a projection of future results.

67

PART II: ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATANOTES TO CONSOLIDATED FINANCIAL STATEMENTS(table dollar amounts in thousands, except share data)

NOTE 3

CASH AND CASH EQUIVALENTS AND INTEREST-BEARING DEPOSITSAt December 31, 2024, the Corporation’s noninterest bearing deposits, included in cash and cash equivalents, and interest-bearing deposits held at other institutions exceeded the $250,000 federally insured