Company: FRME
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000712534-25-000171
Chunk: 202

Company: FIRST MERCHANTS CORP
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 8
Chunk 202
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Stockholders' Equity2,340,440 2,222,750   Total Liabilities and Stockholders' Equity$18,425,723 $18,381,340 Net Interest Income (FTE)$275,610  $267,289  Net Interest Spread (FTE) (4)2.67 %  2.45 %Net Interest Margin (FTE):Interest Income (FTE) / Average Earning Assets5.45 %5.67 %Interest Expense / Average Earning Assets2.22 %2.54 %Net Interest Margin (FTE) (5)3.23 %3.13 %(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 $12,326 and $11,655 for the six 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.

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

NONINTEREST INCOME

Noninterest income remained flat at $31.3 million for the three months ended June 30, 2025 compared to the same period in 2024.  Modest increases in net gains on sales of loans, treasury management fees, derivative hedge fees and card payment fees totaling $1.6 million were offset by a comparable decline in other income, which included lower contributions from CRA-related activities.

For the six months ended June 30, 2025, noninterest income totaled $61.4 million, representing a $3.4 million, or 5.8 percent, increase over the  same period in 2024.  The increase was attributable to a