UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                        ------------------------------

                                    FORM 13F

                        ------------------------------

                               FORM 13F COVER PAGE

Report for the Calendar Year or Quarter Ended:  December 31, 2005

Check here if Amendment [ ]; Amendment Number:
This Amendment (Check only one.): [  ] is a restatement.
                                  [  ] adds new holdings entries.

Institutional Investment Manager Filing this Report:

Name:             TERRY L BLAKER
Address:          200 EAST JACKSON STREET
                  MUNCIE, IN   47305

13F File Number:  28-

The institutional  investment  manager filing this report and the person by whom
it is signed hereby  represent  that the person signing the report is authorized
to  submit  it,  that all  information  contained  herein is true,  correct  and
complete,  and  that it is  understood  that  all  required  items,  statements,
schedules, lists, and tables, are considered integral parts of this form.

Person signing this Report on Behalf of Reporting Manager:

Name:             Terry L. Blaker
Title:            Senior Vice President
Phone:            (765) 747-1570

Signature, Place, and Date of Signing:

                  Terry L. Blaker          Muncie, IN         January 17, 2006

Report Type (Check only one.):

[X]    13F HOLDING REPORT.
[ ]    13F NOTICE.
[ ]    COMBINATION REPORT.


<PAGE>
                              FORM 13F SUMMARY PAGE

Report Summary:

Number of Other Included Managers:  None

Form 13F Information Table Entry Total: 216

Form 13F Information Table Value Total: $320,025,000


List of Other Included Managers:

None

<PAGE>
<TABLE>
<CAPTION>

                                                                  FORM 13F INFORMATION TABLE
                                                           VALUE   SHARES/  SH/ PUT/ INVSTMT    OTHER          VOTING AUTHORITY
        NAME OF ISSUER         TITLE OF CLASS     CUSIP   (X$1000) PRN AMT  PRN CALL DSCRETN   MANAGERS     SOLE    SHARED    NONE
------------------------------ ---------------- --------- -------- -------- --- ---- ------- ------------ -------- -------- --------
<S>                         <C>                 <C>         <C>      <C>    <C> <C>  <C>      <C>           <C>      <C>      <C>
INGERSOLL RAND CL A         COM                 G4776G101     5773   143050 SH       SOLE                   140550     2100      400
INGERSOLL RAND CL A         COM                 G4776G101      266     6600 SH       DEFINED                  6600        0        0
AT&T INC                    COM                 00206R102     1764    72092 SH       SOLE                    71992        0      100
AT&T INC                    COM                 00206R102       53     2200 SH       DEFINED                  1200        0     1000
ABBOTT LABS                 COM                 002824100     3111    78918 SH       SOLE                    77468     1000      450
ABBOTT LABS                 COM                 002824100      278     7057 SH       DEFINED                  6457        0      600
AFFILIATED COMPUTER SV CL A COM                 008190100     1586    26809 SH       SOLE                    25959      750      100
AFFILIATED COMPUTER SV CL A COM                 008190100       20      350 SH       DEFINED                   350        0        0
ALCOA INC                   COM                 013817101     1208    40867 SH       SOLE                    39167     1700        0
ALCOA INC                   COM                 013817101       78     2650 SH       DEFINED                  2650        0        0
ALLSTATE                    COM                 020002101     2277    42121 SH       SOLE                    40621     1500        0
ALLSTATE                    COM                 020002101       43      800 SH       DEFINED                   800        0        0
ALTRIA GROUP INC            COM                 02209S103      216     2900 SH       SOLE                     2550      350        0
ALTRIA GROUP INC            COM                 02209S103      268     3600 SH       DEFINED                  3600        0        0
AMERICAN INTERNATIONAL GRP  COM                 026874107     7451   109231 SH       SOLE                   107831     1200      200
AMERICAN INTERNATIONAL GRP  COM                 026874107      202     2975 SH       DEFINED                  2975        0        0
AMGEN INC                   COM                 031162100     2645    33553 SH       SOLE                    32903      650        0
AMGEN INC                   COM                 031162100       88     1120 SH       DEFINED                  1120        0        0
ANALOG DEVICES, INC         COM                 032654105      208     5825 SH       SOLE                     5825        0        0
ANALOG DEVICES, INC         COM                 032654105       96     2700 SH       DEFINED                  2700        0        0
APACHE CORP                 COM                 037411105      424     6196 SH       SOLE                     5646      550        0
APACHE CORP                 COM                 037411105        5       75 SH       DEFINED                    75        0        0
AUTOMATIC DATA PROCESSING   COM                 053015103     5213   113594 SH       SOLE                   112194     1200      200
AUTOMATIC DATA PROCESSING   COM                 053015103       40      875 SH       DEFINED                   875        0        0
AVERY DENNISON CORP         COM                 053611109     1228    22225 SH       SOLE                    21825      400        0
BP PLC - SPONS              ADR                 055622104     6043    94111 SH       SOLE                    93161      950        0
BP PLC - SPONS              ADR                 055622104     1046    16300 SH       DEFINED                  4522      328    11450
BALL CORP                   COM                 058498106     4560   114820 SH       SOLE                   114520      300        0
BANK OF AMERICA CORP        COM                 060505104     5910   128069 SH       SOLE                   125219     1550     1300
BANK OF AMERICA CORP        COM                 060505104      156     3400 SH       DEFINED                  2900        0      500
BAXTER INTERNATIONAL INC    COM                 071813109      664    17645 SH       SOLE                    17245      400        0
BAXTER INTERNATIONAL INC    COM                 071813109       18      500 SH       DEFINED                   500        0        0
BECTON DICKINSON & CO       COM                 075887109      223     3727 SH       SOLE                     3727        0        0
BED BATH & BEYOND           COM                 075896100      216     5985 SH       SOLE                     5985        0        0
BELLSOUTH CORP              COM                 079860102     2311    85312 SH       SOLE                    84912        0      400
BELLSOUTH CORP              COM                 079860102      148     5500 SH       DEFINED                  3700        0     1800
BEST BUY COMPANY INC        COM                 086516101      663    15254 SH       SOLE                    15254        0        0
BEST BUY COMPANY INC        COM                 086516101       17      412 SH       DEFINED                   412        0        0
BRISTOL-MYERS SQUIBB        COM                 110122108     1418    61745 SH       SOLE                    61445      100      200
BRISTOL-MYERS SQUIBB        COM                 110122108      118     5150 SH       DEFINED                  5150        0        0
BURLINGTON RESOURCES        COM                 122014103      716     8317 SH       SOLE                     7667      650        0
CATERPILLAR INC.            COM                 149123101     1374    23787 SH       SOLE                    23137      650        0
CATERPILLAR INC.            COM                 149123101       46      800 SH       DEFINED                   800        0        0
CHEVRON CORP                COM                 166764100     8105   142771 SH       SOLE                   139979     1650     1142
CHEVRON CORP                COM                 166764100      217     3835 SH       DEFINED                  3835        0        0
CISCO SYSTEMS               COM                 17275R102     1410    82419 SH       SOLE                    81119     1100      200
CISCO SYSTEMS               COM                 17275R102       52     3050 SH       DEFINED                  3050        0        0
CITIGROUP INC               COM                 172967101     3307    68161 SH       SOLE                    65928     1583      650
CITIGROUP INC               COM                 172967101      124     2575 SH       DEFINED                  2175        0      400
COCA COLA CO                COM                 191216100     1727    42846 SH       SOLE                    42846        0        0
COCA COLA CO                COM                 191216100      120     3000 SH       DEFINED                  3000        0        0
COLGATE PALMOLIVE CO        COM                 194162103     1548    28231 SH       SOLE                    27381      850        0
COLGATE PALMOLIVE CO        COM                 194162103      126     2300 SH       DEFINED                   700        0     1600
CONOCOPHILLIPS              COM                 20825C104     3223    55409 SH       SOLE                    54309     1100        0
CONOCOPHILLIPS              COM                 20825C104      216     3725 SH       DEFINED                  3725        0        0
COVANCE INC                 COM                 222816100      269     5555 SH       SOLE                     5130      425        0
COVANCE INC                 COM                 222816100        4      100 SH       DEFINED                   100        0        0
DNP SELECT INCOME FUND                          23325P104     1307   125821 SH       SOLE                   120691     3230     1900
DNP SELECT INCOME FUND                          23325P104       59     5700 SH       DEFINED                  5700        0        0
DANAHER CORP                COM                 235851102     1038    18628 SH       SOLE                    17928      600      100
DANAHER CORP                COM                 235851102       11      200 SH       DEFINED                   200        0        0
DARDEN RESTAURANTS          COM                 237194105     1444    37160 SH       SOLE                    36260      600      300
DARDEN RESTAURANTS          COM                 237194105       85     2200 SH       DEFINED                  2200        0        0
DEERE & CO                  COM                 244199105      590     8666 SH       SOLE                     8316      350        0
DEERE & CO                  COM                 244199105      129     1900 SH       DEFINED                  1900        0        0
DELL INC                    COM                 24702R101     1987    66352 SH       SOLE                    64927     1425        0
DELL INC                    COM                 24702R101       60     2025 SH       DEFINED                  2025        0        0
DIAMOND HILL INVESTMENT GRP COM                 25264R207     1625    51939 SH       SOLE                    51939        0        0
DISNEY WALT COMPANY         COM                 254687106     1834    76575 SH       SOLE                    76575        0        0
DISNEY WALT COMPANY         COM                 254687106       14      600 SH       DEFINED                   600        0        0
DOVER CORP                  COM                 260003108     1040    25707 SH       SOLE                    24732      975        0
DOVER CORP                  COM                 260003108       12      300 SH       DEFINED                   300        0        0
DOW CHEM CO                 COM                 260543103     2653    60559 SH       SOLE                    59659      900        0
DOW CHEM CO                 COM                 260543103       76     1750 SH       DEFINED                   850        0      900
DU PONT E I DE NEMOURS      COM                 263534109     1101    25919 SH       SOLE                    25169      750        0
DU PONT E I DE NEMOURS      COM                 263534109       40      950 SH       DEFINED                   950        0        0
ELECTRONIC ARTS INC         COM                 285512109      461     8825 SH       SOLE                     8825        0        0
ELECTRONIC ARTS INC         COM                 285512109        5      100 SH       DEFINED                   100        0        0
EMERSON ELEC CO             COM                 291011104     5660    75775 SH       SOLE                    75225      500       50
EMERSON ELEC CO             COM                 291011104      310     4150 SH       DEFINED                  4150        0        0
EXELON CORP                 COM                 30161N101      508     9565 SH       SOLE                     9565        0        0
EXXON MOBIL CORP            COM                 30231G102     9408   167498 SH       SOLE                   165442     1792      264
EXXON MOBIL CORP            COM                 30231G102      620    11041 SH       DEFINED                  9521      528      992
FPL GROUP INC               COM                 302571104     1345    32378 SH       SOLE                    29078     1300     2000
FPL GROUP INC               COM                 302571104       54     1300 SH       DEFINED                  1300        0        0
FANNIE MAE                  COM                 313586109      304     6237 SH       SOLE                     6087      150        0
FIFTH-THIRD BANCORP         COM                 316773100     1156    30667 SH       SOLE                    28242     1225     1200
FIFTH-THIRD BANCORP         COM                 316773100       15      400 SH       DEFINED                   400        0        0
FIRST MERCHANTS CORP        COM                 320817109    11176   429868 SH       SOLE                   379173     8892    41803
FIRST MERCHANTS CORP        COM                 320817109     2313    88966 SH       DEFINED                 88186        0      780
FORTUNE BRANDS INC          COM                 349631101      443     5691 SH       SOLE                     5666       25        0
FORTUNE BRANDS INC          COM                 349631101       62      800 SH       DEFINED                   800        0        0
GANNETT COMPANY INC         COM                 364730101     1112    18373 SH       SOLE                    17823      550        0
GANNETT COMPANY INC         COM                 364730101       36      600 SH       DEFINED                   600        0        0
GENERAL ELEC CO             COM                 369604103    12366   352935 SH       SOLE                   348185     3500     1250
GENERAL ELEC CO             COM                 369604103      917    26190 SH       DEFINED                 20490        0     5700
GOLDEN WEST FINL CORP DEL   COM                 381317106      316     4800 SH       SOLE                     4800        0        0
GOLDMAN SACHS GROUP         COM                 38141G104      576     4511 SH       SOLE                     4011      500        0
GOLDMAN SACHS GROUP         COM                 38141G104       51      400 SH       DEFINED                   400        0        0
HARSCO CORP                 COM                 415864107      936    13870 SH       SOLE                    13870        0        0
HEINZ H J CO                COM                 423074103      227     6750 SH       SOLE                     6750        0        0
HEWLETT PACKARD CO          COM                 428236103     2063    72059 SH       SOLE                    71859        0      200
HEWLETT PACKARD CO          COM                 428236103      194     6800 SH       DEFINED                  6800        0        0
HOME DEPOT INC              COM                 437076102      945    23368 SH       SOLE                    22318     1050        0
HOME DEPOT INC              COM                 437076102       28      700 SH       DEFINED                   700        0        0
INTEL CORP                  COM                 458140100     6929   277722 SH       SOLE                   273322     4400        0
INTEL CORP                  COM                 458140100      395    15851 SH       DEFINED                 15851        0        0
INTL BUSINESS MACHINES CORP COM                 459200101     2696    32799 SH       SOLE                    32199      600        0
INTL BUSINESS MACHINES CORP COM                 459200101       87     1059 SH       DEFINED                  1059        0        0
LEHMAN AGG BOND FUND        I SHARES            464287226      201     2000 SH       SOLE                     2000        0        0
MSCI EAFE INDEX ISHARES     COM                 464287465      857    14422 SH       SOLE                    14157       20      245
MSCI EAFE INDEX ISHARES     COM                 464287465       45      758 SH       DEFINED                   758        0        0
RUSSELL 2000                I SHARES            464287655     2376    35622 SH       SOLE                    34077     1225      320
RUSSELL 2000                I SHARES            464287655       93     1404 SH       DEFINED                  1404        0        0
J P MORGAN CHASE & CO       COM                 46625H100     7432   187311 SH       SOLE                   186365      550      396
J P MORGAN CHASE & CO       COM                 46625H100      548    13811 SH       DEFINED                 13811        0        0
JARDEN CORPORATION          COM                 471109108      396    13155 SH       SOLE                    13155        0        0
JOHNSON & JOHNSON           COM                 478160104     8388   139576 SH       SOLE                   138051     1525        0
JOHNSON & JOHNSON           COM                 478160104      635    10582 SH       DEFINED                 10182        0      400
JOHNSON CTLS INC            COM                 478366107     3626    49745 SH       SOLE                    48570     1075      100
JOHNSON CTLS INC            COM                 478366107      109     1505 SH       DEFINED                  1505        0        0
KELLOGG CO                  COM                 487836108      318     7360 SH       SOLE                     7360        0        0
KIMBERLY CLARK CORP         COM                 494368103     3616    60622 SH       SOLE                    59572      500      550
KIMBERLY CLARK CORP         COM                 494368103        8      150 SH       DEFINED                   150        0        0
KOHL'S CORP                 COM                 500255104      219     4517 SH       SOLE                     4517        0        0
KOHL'S CORP                 COM                 500255104       19      400 SH       DEFINED                   400        0        0
LILLY ELI & CO              COM                 532457108     7122   125861 SH       SOLE                   123981     1680      200
LILLY ELI & CO              COM                 532457108      484     8554 SH       DEFINED                  8554        0        0
LOWE'S COMPANIES INC        COM                 548661107     5572    83605 SH       SOLE                    82010     1525       70
LOWE'S COMPANIES INC        COM                 548661107      129     1950 SH       DEFINED                  1750        0      200
MARSH SUPERMARKETS INC CL B COM                 571783208     1081   124761 SH       SOLE                   124761        0        0
MARSH SUPERMARKETS INC CL A COM                 571783307     1111   126834 SH       SOLE                   126834        0        0
MASCO CORP                  COM                 574599106     2063    68357 SH       SOLE                    66482     1875        0
MASCO CORP                  COM                 574599106       68     2275 SH       DEFINED                  2275        0        0
MCDONALDS CORP              COM                 580135101      698    20720 SH       SOLE                    20520      200        0
MCDONALDS CORP              COM                 580135101      114     3400 SH       DEFINED                  3400        0        0
MCGRAW HILL COS INC         COM                 580645109     2047    39650 SH       SOLE                    38850      800        0
MEDTRONIC INCORPORATED      COM                 585055106     2834    49249 SH       SOLE                    48024     1025      200
MEDTRONIC INCORPORATED      COM                 585055106       23      400 SH       DEFINED                   400        0        0
MERCK & CO INC              COM                 589331107      265     8350 SH       SOLE                     7750        0      600
MERRILL LYNCH & CO INC      COM                 590188108     1623    23975 SH       SOLE                    23925       50        0
MERRILL LYNCH & CO INC      COM                 590188108       20      300 SH       DEFINED                   300        0        0
MICROSOFT CORPORATION       COM                 594918104     6982   267118 SH       SOLE                   262768     2850     1500
MICROSOFT CORPORATION       COM                 594918104      361    13815 SH       DEFINED                 13815        0        0
S&P MIDCAP 400 SPDR                             595635103     3653    27124 SH       SOLE                    26147      805      172
S&P MIDCAP 400 SPDR                             595635103      147     1093 SH       DEFINED                  1093        0        0
MORGAN STANLEY DEAN WITTER  COM                 617446448     1062    18724 SH       SOLE                    17724     1000        0
NEWELL RUBBERMAID INC       COM                 651229106      233     9830 SH       SOLE                     9730      100        0
NEWELL RUBBERMAID INC       COM                 651229106       16      700 SH       DEFINED                   700        0        0
NVIDIA CORP                 COM                 67066G104      770    21075 SH       SOLE                    20775      300        0
OLD NATIONAL BANCORP        COM                 680033107      907    41955 SH       SOLE                    41955        0        0
OMNICOM GROUP INC           COM                 681919106      439     5166 SH       SOLE                     4716      350      100
OMNICOM GROUP INC           COM                 681919106       40      475 SH       DEFINED                   475        0        0
PEPSICO INC                 COM                 713448108     7519   127277 SH       SOLE                   125477     1300      500
PEPSICO INC                 COM                 713448108      467     7915 SH       DEFINED                  7915        0        0
PFIZER INC                  COM                 717081103     1987    85271 SH       SOLE                    81771     1900     1600
PFIZER INC                  COM                 717081103      119     5130 SH       DEFINED                  3930     1200        0
PITNEY BOWES INC            COM                 724479100      614    14539 SH       SOLE                    14539        0        0
PITNEY BOWES INC            COM                 724479100       21      500 SH       DEFINED                   500        0        0
T. ROWE PRICE GROUP INC     COM                 74144T108      955    13271 SH       SOLE                    13271        0        0
T. ROWE PRICE GROUP INC     COM                 74144T108       21      300 SH       DEFINED                   300        0        0
PROCTER & GAMBLE CO         COM                 742718109     6794   117396 SH       SOLE                   115896     1300      200
PROCTER & GAMBLE CO         COM                 742718109      274     4750 SH       DEFINED                  1750        0     3000
PRUDENTIAL FINANCIAL        COM                 744320102      193     2638 SH       SOLE                     1689      949        0
PRUDENTIAL FINANCIAL        COM                 744320102       62      850 SH       DEFINED                   850        0        0
QUALCOMM INCORPORATED       COM                 747525103      474    11025 SH       SOLE                    11025        0        0
QUALCOMM INCORPORATED       COM                 747525103        4      100 SH       DEFINED                   100        0        0
REGIONS FINANCIAL CORP      COM                 7591EP100      375    11000 SH       DEFINED                 11000        0        0
S&P 500 INDEX SPDR ETF                          78462F103      697     5605 SH       SOLE                     5605        0        0
SARA LEE CORP               COM                 803111103     1621    85864 SH       SOLE                    84864     1000        0
SARA LEE CORP               COM                 803111103      102     5400 SH       DEFINED                  5400        0        0
SCHLUMBERGER LTD            COM                 806857108     4568    47023 SH       SOLE                    46423      500      100
SCHLUMBERGER LTD            COM                 806857108      204     2100 SH       DEFINED                  2100        0        0
SECTOR SPDR HEALTH CARE     COM                 81369Y209      492    15540 SH       SOLE                    15150      390        0
SOUTHERN CO                 COM                 842587107     2092    60615 SH       SOLE                    58335      350     1930
SOUTHERN CO                 COM                 842587107      174     5060 SH       DEFINED                  5060        0        0
STAPLES INC                 COM                 855030102     1997    88009 SH       SOLE                    86059     1650      300
STAPLES INC                 COM                 855030102       73     3250 SH       DEFINED                  3250        0        0
STRYKER CORP                COM                 863667101     1206    27164 SH       SOLE                    26464      700        0
STRYKER CORP                COM                 863667101       11      250 SH       DEFINED                   250        0        0
SYSCO CORP                  COM                 871829107     5846   188349 SH       SOLE                   185299     2650      400
SYSCO CORP                  COM                 871829107      232     7500 SH       DEFINED                  7500        0        0
TARGET CORP                 COM                 87612E106     3660    66589 SH       SOLE                    65239     1150      200
TARGET CORP                 COM                 87612E106       51      945 SH       DEFINED                   945        0        0
TEXAS INSTRS INC            COM                 882508104     1042    32531 SH       SOLE                    32531        0        0
TEXAS INSTRS INC            COM                 882508104       28      900 SH       DEFINED                   900        0        0
3M COMPANY                  COM                 88579Y101     1660    21422 SH       SOLE                    21172      250        0
3M COMPANY                  COM                 88579Y101      211     2725 SH       DEFINED                   525        0     2200
US BANCORP DEL              COM                 902973304     2472    82755 SH       SOLE                    79055     2250     1450
US BANCORP DEL              COM                 902973304       38     1300 SH       DEFINED                  1300        0        0
UNITED PARCEL SERVICE       COM                 911312106      603     8024 SH       SOLE                     8024        0        0
UNITED PARCEL SERVICE       COM                 911312106       30      400 SH       DEFINED                   400        0        0
UNITED TECHNOLOGIES CORP    COM                 913017109     9063   162139 SH       SOLE                   159839     2100      200
UNITED TECHNOLOGIES CORP    COM                 913017109      148     2650 SH       DEFINED                  2650        0        0
UNITEDHEALTH GROUP INC      COM                 91324P102     2259    36369 SH       SOLE                    35569      700      100
UNITEDHEALTH GROUP INC      COM                 91324P102       34      550 SH       DEFINED                   550        0        0
UNITRIN INC                 COM                 913275103      225     5000 SH       SOLE                     5000        0        0
VECTREN CORP                COM                 92240G101     2505    92291 SH       SOLE                    88352     3239      700
VECTREN CORP                COM                 92240G101      148     5465 SH       DEFINED                  4400        0     1065
VERIZON COMMUNICATIONS INC  COM                 92343V104     3227   107184 SH       SOLE                   105109     1975      100
VERIZON COMMUNICATIONS INC  COM                 92343V104      159     5294 SH       DEFINED                  4928      366        0
WACHOVIA CORP               COM                 929903102     3127    59168 SH       SOLE                    57618     1400      150
WACHOVIA CORP               COM                 929903102      241     4567 SH       DEFINED                  4567        0        0
WAL MART STORES INC         COM                 931142103     5017   107236 SH       SOLE                   105786     1450        0
WAL MART STORES INC         COM                 931142103      231     4950 SH       DEFINED                  4950        0        0
WALGREEN COMPANY            COM                 931422109      716    16190 SH       SOLE                    16140       50        0
WALGREEN COMPANY            COM                 931422109       35      800 SH       DEFINED                   800        0        0
WASHINGTON MUTUAL INC       COM                 939322103      930    21381 SH       SOLE                    20831      550        0
WASHINGTON MUTUAL INC       COM                 939322103       65     1500 SH       DEFINED                   900        0      600
WELLPOINT INC               COM                 94973V107      298     3737 SH       SOLE                     2791      946        0
WELLS FARGO & CO            COM                 949746101     6726   107060 SH       SOLE                   105810     1050      200
WELLS FARGO & CO            COM                 949746101      933    14856 SH       DEFINED                 14256        0      600
WEYERHAEUSER CO             COM                 962166104     3362    50686 SH       SOLE                    50061      625        0
WEYERHAEUSER CO             COM                 962166104       29      450 SH       DEFINED                   450        0        0
WYETH                       COM                 983024100     3229    70107 SH       SOLE                    69907        0      200
WYETH                       COM                 983024100      124     2700 SH       DEFINED                   300        0     2400

 GRAND TOTALS                                               320025  7690061                                7480359   106323   103379
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