1
 First Merchants Corporation
1st Quarter 2012
Earnings Call
 April 26, 2012





2
 Michael C. Rechin
 President
 and Chief Executive Officer





3
 Forward-Looking Statement
 FORWARD-LOOKING STATEMENT
 The Corporation may make forward-looking statements about its
relative business outlook. These forward-looking statements and
all other statements made during this meeting that do not
concern historical facts are subject to risks and uncertainties that
may materially affect actual results.
Specific forward-looking statements include, but are not limited
to, any indications regarding the financial services industry, the
economy and future growth of the balance sheet or income
statement.
Please refer to our press releases, Form 10-Qs and 10-Ks
concerning factors that could cause actual results to differ
materially from any forward-looking statements.





4
 1stQUARTER 2012 HIGHLIGHTS
 •  EPS
 –  $.46 per share (171% year-over-year growth)
 –  Core EPS:$.25 per share (47% year-over-year growth)
 –  SCB bargain purchase gain of $.21 per share
 •  SCB FDIC-Modified Whole-Bank Transaction
 •  Core Revenue Growth
 –  $1.7M increase year-over-year
 •  Balance Sheet Well Positioned for Growth
 –  Strong Core Funding Base
 –  Tangible Common Equity: 7.07%
 –  Tier 1 Common: 9.20%
 –  Lower Risk Profile





5
 Mark K. Hardwick
 Executive Vice President
 and Chief Financial Officer





6
 
 
 2010  2011  Q1-’11  Q1-’12
 1.  Investments
$827$946$886$960
 2.  Loans2,8572,7312,7662,815
 3.  Allowance(83)(71)(81)(70)
 4.  CD&I & Goodwill 154150153150
 5.  BOLI97124102123
 6.  Other 319  293  291  258
 7.  Total Assets$4,171$4,173$4,117$4,236
 ($ in Millions)
 TOTAL ASSETS





7
 Loan Composition (as of 3/31/12)
 YTD Yield = 5.17%
 LOAN AND CREDIT DETAIL





8
 INVESTMENT PORTFOLIO  (as of 3/31/12)





9
 
 2010  2011  Q1-’11  Q1-’12
 1.  Customer Non-Maturity
 Deposits  $2,127$2,196$2,083$2,273
 2.  Customer Time Deposits996816943836
 3.  Brokered Deposits146123126170
 4.  Borrowings277378305287
 5.  Other Liabilities28345631
 6.  Hybrid Capital142111142111
 7.  Preferred Stock (CPP)68-68 -
 8.  Preferred Stock (SBLF)- 91 -91
 9.  Common Equity 387  424  394  437
 10.  Total Liabilities and Capital$4,171$4,173$4,117$4,236
 ($ in Millions)
 TOTAL LIABILITIES AND CAPITAL





10
 DEPOSITS  (as of 3/31/12)





11
 CAPITAL RATIOS
 2010  2011  Q1-’11  Q1-’12
 1.  Total Risk-Based
 Capital Ratio 15.74%16.54%15.66%16.39%
 2.  Tier 1 Risk-Based
 Capital Ratio 12.82%13.92%13.05%14.14%
 3.  Leverage Ratio9.50%10.17%9.80%10.61%
 4.  Tier 1 Common Risk-
 Based Capital Ratio7.64%8.83%7.75%9.20%
 5.  TCE/TCA 5.86%6.84%6.16%7.07%





12
 Q1 - '10
Q2 - '10
Q3 - '10
Q4 - '10
Q1 - '11
Q2 - '11
Q3 - '11
Q4 - '11
Q1 - '12Net Interest Income - FTE ($ in millions)
$37.8
$37.7
$37.2
$36.7
$36.9
$37.3
$37.3
$37.6
$37.6Tax Equivalent Yield on Earning
Assets
5.39%
5.38%
5.38%
5.13%
5.11%
5.04%
5.01%
4.83%
4.74%Cost of Supporting Liabilities
1.57%
1.48%
1.45%
1.30%
1.16%
1.05%
0.99%
0.84%
0.78%Net Interest Margin
3.82%
3.90%
3.93%
3.83%
3.95%
3.99%
4.02%
3.99%
3.96%  NET INTEREST MARGIN





13
 
 2010  2011  Q1-’11  Q1-’12
 1.  Service Charges on Deposit Accounts $13.3$12.0 $
2.8$2.8
 2.  Trust
Fees7.7 7.7 2.0
 2.0
 3.  Insurance Commission Income6.25.7 1.91.7
 4.  Electronic Card Fees6.1 
     6.5 1.51.7
 5.  Cash Surrender Value of Life Ins 2.12.6 0.61.4
 6.  Gains on Sales Mortgage Loans  6.87.4 1.92.0
 7.  Securities Gains/Losses1.92.0 0.10.8
 8.  Gain on FDIC-Modified Whole-Bank
 Transaction -  -  - 9.1
 9.  Other 4.4  5.2  1.1  1.2
 10.  Total $48.5$49.1$11.9$22.7
 11.  Adjusted Non-Interest Income1$46.6$47.1$11.8$12.8
 1Adjusted for Bond Gains & Losses and Gain on FDIC-Modified Whole-Bank Transaction
 ($ in Millions)
 NON-INTEREST INCOME





14
 NON-INTEREST EXPENSE
 2010  2011  Q1-’11  Q1-’12
 1. Salary & Benefits$73.3$74.7$17.2$19.4
 2. Premises & Equipment17.216.94.54.4
 3. Core Deposit Intangible4.73.51.10.5
 4. Professional Services1.42.20.60.7
 5. OREO/Credit-Related Expense  14.6 
10.6 3.2 2.2
 6. FDIC Expense8.15.52.11.1
 7. Outside Data Processing5.15.71.41.4
 8. Marketing2.02.00.40.4
 9. Other 15.9  14.8  3.4  3.9
 10. Total$142.3$135.9$33.9$34.0
 ($ in Millions)





15
 EARNINGS
 2010  2011  Q1-’11  Q1-’12
 1.  Net Interest Income-FTE $149.4 $149.1$36.9$37.6
 2.  Non Interest
Income146.647.111.812.8
 3.  Non Interest Expense
(142.3)(135.9)(33.9)(34.0)
 4.  Pre-Tax Pre-Provision Earnings$53.7$60.3$14.8 $16.4
 5.  Provision
     (46.5)(22.6)(5.6)(4.9)
 6.  Adjustments11.92.0 0.19.9
 7.  Taxes - FTE  (2.3)
(14.4)(3.8)(7.1)
 8.  Gain/(Loss) on CPP/Trust Preferred 10.1 (12.3)— —
 9.  Preferred Stock Dividend (5.2)  (4.0)  (1.0)  (1.1)
 10.Net Income Avail. for Distribution $11.7$9.0 $4.5$13.2
 11.  EPS$0.48  $0.34  $0.17$0.46
 1Adjusted for Bond Gains & Losses and Gain on FDIC-Modified Whole-Bank Transaction
 ($ in Millions)





16
 EARNINGS PER SHARE
 1
 1
 2
 2010  Q1  Q2  Q3  Q4  Total
 1.Actual$ .01$ .35$ .02$ .10$.48
 2.Adjusted$ .01($.05)$ .02$ .10$.08
 2011  Q1  Q2  Q3  Q4  Total
 3.Actual$ .17$ .18($.25)$ .24$.34
 4.  Adjusted$ .17$ .18$ .21$ .24$.80
 2012  Q1  Q2  Q3  Q4  Total
 5.  Actual$ .46- - -$.46
 6.  Adjusted  $ .25 - - -  $  .25
 1Adjusted for gains and losses on CPP/Trust Preferred refinance and repayment net of
 taxes (Line 8 on slide 15)
 2Adjusted for Gain on FDIC-Modified Whole-Bank Transaction





17
 John J. Martin
 Senior Vice President
 and Chief Credit Officer





18
 ASSET QUALITY SUMMARY





19
 CREDIT METRICS AND ALLL COVERAGE
 Criticized Assets down 11.1% Q1-’12
compared to Q1-’11 and up 6.9% linked
quarter
 Classified Assets down 23.3%  Q1-’12
compared to Q1-’11 and down .9% linked
quarter
 Non-Accrual Loans down 15.1% Q1-’12
compared to Q1-’11 and up 7.0% linked
quarter
 *Q1 2012 includes loans acquired at Fair Value
 Allowance for Loan and Lease
Losses as a % of Non-Accrual
Loans reduced to 94.5%
 Acquired Fair Value portfolio with
$4.9M in newly identified Non-
Accruals; Core Non-Accruals flat for  quarter.
 ($ in Millions)
 ($ in Millions)





20
 NON-PERFORMING ASSET RECONCILIATION
 ($ in millions)
Q4-’10
Q1-’11
Q2-’11
Q3-’11
Q4-’11
Q1-’12*1.Beginning Balance NPAs & 90+ Days Delinquent
$ 130.8
$ 120.0
$ 107.6
$ 109.5
$ 106.7
$ 100.8Non-Accrual2.Add: New Non-Accruals*
27.4
11.7
26.7
21.4
10.2
16.43.Less: To Accrual/Payoff/Restructured
( 14.5)
( 3.2)
( 8.3)
( 8.7)
( 7.6)
( 2.7)4.Less: To OREO
( 7.0)
( 2.0)
( 1.6)
( 9.7)
( 1.2)
( 2.5)5.Less: Charge-offs*
( 13.9)
( 9.4)
(16.9)
(11.6)
( 10.7)
( 6.3)6.Increase /(Decrease):Non-Accrual Loans
(8.0)
( 2.9)
( .1)
(8.6)
(9.3)
4.9Other Real Estate Owned (ORE)7.Add: New ORE Properties
7.2
2.2
1.6
9.7
1.2
2.58.Less: ORE Sold
(4.2)
( 3.6)
( 1.6)
( 5.0)
(3.3)
( 1.8)9.Less: ORE Losses (write-downs)
( 3.6)
( 2.5)
( 1.6)
( 0.7)
(1.1)
( 1.4)10.Increase /(Decrease): ORE
( .6)
( 3.9)
( 1.6)
4.0
( 3.2)
( .7)11.Increase /(Decrease): 90 Days Delinquent*
( 4.0)
( 0.6)
( 0.5)
1.4
( 1.0)
( 0.4)12.Increase /(Decrease): Restructured Loans
1.8
( 5.0)
4.1
.4
7.6
(7.6)13.Total NPA Change
(10.8)
(12.4)
1.9
(2.8)
(5.9)
(3.8)14.Ending Balance NPAs & 90+ Days Delinquent
$ 120.0
$ 107.6
$ 109.5
$ 106.7
$ 100.8
$ 97.0 25.8%
 *Q1-’12  Includes FV portfolio loans acquired.





21
 NET CHARGE-OFFS, PROVISION AND ALLOWANCE
 ($ in Millions)





22
 Credit Summary
 •  Asset quality trends continue to improve
 •  Decrease in Restructured Loans following their return tomarket terms, demonstrated performance and lossrecognition
 •  Charge-offs and provision expense lower and in line withimprovement in credit quality
 •  Total loan pipeline improving driven by mortgage andcommercial loans
 •  Fair Value portfolio of $89.7M with a composition similarto core portfolio





23
 Michael C. Rechin
 President
 and Chief Executive Officer





24
 Overview of 2012 Strategy and Tactics
“Growth and Top-Tier Performance”
 •  Shelby County Bank integration
 •  Grow revenue by intensifying revenue-generatingactivity:
 –  Market coverage tactics . . . including SCB
 –  Additional investment in business banking professionals in keymarkets
 –  Retail CRM and sales management system
 •  Implement systems and processes to improve efficiency:
 –  Banking center rationalization
 –  Enhance systems in consumer collections, human resourcesand finance
 •  Seek non-organic growth opportunities





25
 CONTACT INFORMATION
 First Merchants Corporation common stock is
traded on the NASDAQ Global Select Market
under the symbol FRME.
 Additional information can be found at
 www.firstmerchants.com
 Investor inquiries:
 David L. Ortega
 Investor Relations
 Telephone: 765.378.8937
 dortega@firstmerchants.com