Company: FRME
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000712534-25-000171
Chunk: 198

Company: FIRST MERCHANTS CORP
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 8
Chunk 198
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 decreased $32.6 million, reflecting lower rates across all deposit categories. The total cost of interest-bearing liabilities decreased 44 basis points, to 2.78 percent for the six months ended June 30, 2025, down from 3.22 percent for the same period in 2024. This reduction in funding costs more than offset the decline in asset yields and resulted in a 22 basis point improvement in the FTE net interest spread, which increased to 2.67 percent from 2.45 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 six months ended June 30, 2025 and 2024.

 (Dollars in Thousands)Three Months EndedJune 30, 2025June 30, 2024Average BalanceInterest Income /ExpenseAverageRateAverage BalanceInterest Income /ExpenseAverageRateAssets: Interest-bearing deposits$252,613 $1,892 3.00 %$322,647 $2,995 3.71 %Federal Home Loan Bank stock46,598 1,083 9.30 41,749 879 8.42 Investment Securities: (1)Taxable1,605,718 8,266 2.06 1,788,749 9,051 2.02 Tax-Exempt (2)2,042,326 15,843 3.10 2,240,309 17,232 3.08 Total Investment Securities3,648,044 24,109 2.64 4,029,058 26,283 2.61 Loans held for sale25,411 389 6.12 28,585 431 6.03 Loans: (3)Commercial9,006,650 154,108 6.84 8,691,746 160,848 7.40 Real estate mortgage2,200,521 25,062 4.56 2,150,591 23,799 4.43 HELOC and installment834,901 15,614 7.48 823,417 16,335