First Merchants Corporation (FRME): Business Model Canvas

First Merchants Corporation (FRME) ist ein dynamisches, strategisch im Mittleren Westen der USA positioniertes Finanzunternehmen, das einen umfassenden und innovativen Bankansatz bietet, der über traditionelle Servicemodelle hinausgeht. Durch die nahtlose Verbindung personalisierter Kundenbeziehungen mit modernsten digitalen Plattformen hat dieser führende regionale Bankensektor ein anspruchsvolles Geschäftsmodell entwickelt, das den komplexen Finanzbedürfnissen von Unternehmen, Einzelpersonen und Gemeinden gerecht wird. Durch strategische Partnerschaften, diversifizierte Finanzprodukte und einen beziehungsorientierten Ansatz hat sich First Merchants Corporation als flexibles und zukunftsorientiertes Finanzinstitut profiliert, das in der Lage ist, über mehrere Kundensegmente hinweg außergewöhnlichen Mehrwert zu bieten.

First Merchants Corporation (FRME) – Geschäftsmodell: Wichtige Partnerschaften

Lokale und regionale Banken für strategische Zusammenarbeit

First Merchants Corporation unterhält strategische Partnerschaften mit mehreren regionalen Bankinstituten in Indiana, Illinois, Ohio und Michigan. Seit dem vierten Quartal 2023 hat das Unternehmen Kooperationsnetzwerke mit etwa 12 lokalen Bankinstituten aufgebaut.

Partnerbank	Staat	Partnerschaftsfokus
Alte Nationalbank	Indiana	Zusammenarbeit bei der gewerblichen Kreditvergabe
Horizon Bank	Indiana	Finanzdienstleistungen für kleine Unternehmen

Anbieter von Finanztechnologie-Diensten (Fintech).

First Merchants Corporation unterhält integrierte Partnerschaften mit spezialisierten Fintech-Dienstleistern, um die Möglichkeiten des digitalen Bankings zu verbessern.

• Jack Henry & Associates – Integration digitaler Bankplattformen
• Fiserv – Kerntechnologielösungen für das Bankwesen
• Plaid – Konnektivitätsdienste für Finanzdaten

Investmentfirmen und Vermögensverwaltungsnetzwerke

Das Unternehmen unterhält strategische Partnerschaften mit Investmentfirmen, um die Vermögensverwaltungsdienstleistungen zu erweitern. Ab 2023 unterhält First Merchants Kooperationsbeziehungen mit 7 Investmentnetzwerken.

Investmentpartner	Verwaltetes Vermögen	Partnerschaftstyp
Raymond James	940 Milliarden Dollar	Empfehlungsnetzwerk für die Vermögensverwaltung
LPL Finanzen	1,2 Billionen Dollar	Zusammenarbeit bei der Finanzberatung

Versicherungsunternehmen für Cross-Selling von Finanzprodukten

First Merchants Corporation hat Cross-Selling-Partnerschaften mit Versicherungsanbietern aufgebaut, um umfassende Finanzlösungen anzubieten.

• Landesweite Versicherung – Privat- und Gewerbeversicherungsprodukte
• State Farm – Risikomanagement und Versicherungsdienstleistungen
• Chubb Limited – Spezialisierte Versicherungsangebote

Der Gesamtwert des Partnerschaftsnetzwerks wird im Jahr 2024 auf 3,5 Milliarden US-Dollar an kollaborativen Finanzdienstleistungen geschätzt.

First Merchants Corporation (FRME) – Geschäftsmodell: Hauptaktivitäten

Geschäfts- und Privatkundendienstleistungen

Im vierten Quartal 2023 meldete die First Merchants Corporation eine Bilanzsumme von 21,4 Milliarden US-Dollar. Die Bank betreibt 130 Bankzentren in Indiana, Ohio, Illinois und Kentucky.

Kategorie Bankdienstleistungen	Gesamtvolumen (2023)
Gewerbliche Kredite	12,8 Milliarden US-Dollar
Verbraucherkredite	5,6 Milliarden US-Dollar
Gesamteinlagen	18,3 Milliarden US-Dollar

Vermögensverwaltung und Anlageberatung

First Merchants Private Wealth Advisors verwaltet ab 2023 ein verwaltetes Vermögen von rund 4,2 Milliarden US-Dollar.

• Umfassende Finanzplanungsdienstleistungen
• Ruhestandsplanung
• Verwaltung des Anlageportfolios
• Treuhand- und Nachlassplanungsdienstleistungen

Entwicklung einer digitalen Banking-Plattform

Digitale Banktransaktionen stiegen im Jahr 2023 um 38 % über 250.000 aktive Digital-Banking-Nutzer.

Digitale Plattformfunktion	Nutzungsstatistik (2023)
Mobile-Banking-App-Downloads	127,500
Online-Rechnungszahlungstransaktionen	2,3 Millionen
Mobile Scheckeinzahlung	1,7 Millionen

Kreditvergabe und Kreditdienstleistungen

First Merchants verarbeitete im Jahr 2023 neue Kreditvergaben in Höhe von 1,9 Milliarden US-Dollar.

• Gewerbliche Immobilienkredite
• Kreditprogramme für kleine Unternehmen
• Agrarkredite
• Verbraucherkreditdienstleistungen

Fusionen und Übernahmen im Finanzsektor

Im Jahr 2022 schloss First Merchants die Übernahme von Tower Bancorp für 511 Millionen US-Dollar ab und baute damit seine Marktpräsenz in Ohio aus.

Akquisitionsdetails	Finanzinformationen
Zielunternehmen	Tower Bancorp
Anschaffungswert	511 Millionen Dollar
Neue Zweige hinzugefügt	22

First Merchants Corporation (FRME) – Geschäftsmodell: Schlüsselressourcen

Regionales Bankennetzwerk

First Merchants Corporation ist in 14 Landkreisen in Indiana tätig und verfügt ab dem 4. Quartal 2023 über 120 Bankstandorte. Das gesamte Filialnetz der Bank erstreckt sich über 5 Bundesstaaten: Indiana, Illinois, Ohio, Michigan und Kentucky.

Staat	Anzahl der Filialen	Marktdurchdringung
Indiana	86	68%
Ohio	16	12%
Michigan	8	6%
Illinois	6	5%
Kentucky	4	3%

Management und Personalwesen

Im Jahr 2023 beschäftigt die First Merchants Corporation 1.987 Bankfachleute mit einer durchschnittlichen Branchenerfahrung von 15,6 Jahren.

• Führungsteam: 7 leitende Angestellte
• Durchschnittliche Managementzugehörigkeit: 12,3 Jahre
• Inhaber fortgeschrittener Abschlüsse: 62 % des Managements

Digitale Banking-Infrastruktur

Die digitale Banking-Plattform unterstützt ab dem vierten Quartal 2023 287.000 aktive Online-Banking-Benutzer und 156.000 Mobile-Banking-Benutzer.

Kennzahlen für digitale Plattformen	Statistik 2023
Online-Banking-Benutzer	287,000
Mobile-Banking-Benutzer	156,000
Jährliches digitales Transaktionsvolumen	42,3 Millionen

Finanzproduktportfolio

Das vielfältige Produktangebot umfasst gewerbliche Kredite, Privatbanking, Vermögensverwaltung und Treasury-Dienstleistungen.

• Kommerzielle Kredite: 4,2 Milliarden US-Dollar
• Persönliche Bankkonten: 312.000
• Vermögensverwaltungsvermögen: 1,8 Milliarden US-Dollar

Kundenbeziehungsmanagement

Das Customer-Relationship-Management-System verfolgt 587.000 Kundenbeziehungen mit erweiterten Datenanalysefunktionen.

CRM-Leistungsmetriken	Daten für 2023
Gesamte Kundenbeziehungen	587,000
Kundenbindungsrate	89.4%
Jährliche Kundeninteraktions-Touchpoints	3,2 Millionen

First Merchants Corporation (FRME) – Geschäftsmodell: Wertversprechen

Personalisierte Banklösungen für Unternehmen und Privatpersonen

Ab dem vierten Quartal 2023 bietet First Merchants Corporation personalisierte Banklösungen mit den folgenden Finanzkennzahlen an:

Produktkategorie	Gesamtwert	Kundensegment
Unternehmenskredite	2,3 Milliarden US-Dollar	Kleine bis mittlere Unternehmen
Persönliches Banking	1,7 Milliarden US-Dollar	Einzelne Kunden

Wettbewerbsfähige Zinssätze und Finanzprodukte

Zinssätze und Produktangebote Stand Januar 2024:

• Persönliche Sparkonten: 3,75 % effektiver Jahreszins
• Geschäftsgirokonten: 2,25 % Zinssatz
• Gewerbliche Kredite: Ab 6,50 % effektiver Jahreszins
• Hypothekenzinsen: Fest 30 Jahre bei 6,85 %

Umfassende digitale und mobile Banking-Plattformen

Kennzahlen für digitale Plattformen	Daten für 2023
Mobile-Banking-Benutzer	287,000
Online-Transaktionsvolumen	4,6 Milliarden US-Dollar
Akzeptanzrate des digitalen Bankings	68.3%

Lokale Marktexpertise und beziehungsorientierter Ansatz

Marktpräsenz- und Beziehungsstatistiken:

• Betrieb in 6 Bundesstaaten des Mittleren Westens
• Gesamtes Filialnetz: 125 Standorte
• Durchschnittliche Kundenbeziehungsdauer: 8,2 Jahre
• Kundenbindungsrate: 92,5 %

Integrierte Finanzdienstleistungen über mehrere Segmente hinweg

Servicesegment	Gesamtvermögen	Umsatzbeitrag
Kommerzielles Banking	5,2 Milliarden US-Dollar	42 % des Gesamtumsatzes
Vermögensverwaltung	1,8 Milliarden US-Dollar	18 % des Gesamtumsatzes
Verbraucherbanking	3,6 Milliarden US-Dollar	35 % des Gesamtumsatzes
Wertpapierdienstleistungen	0,6 Milliarden US-Dollar	5 % des Gesamtumsatzes

First Merchants Corporation (FRME) – Geschäftsmodell: Kundenbeziehungen

Persönliches Beziehungsmanagement

Die First Merchants Corporation unterhält ab 2023 125 Bankzentren in Indiana, Illinois, Ohio und Kentucky. Die Bank beschäftigt insgesamt 2.127 Mitarbeiter, die sich dem Kundenbeziehungsmanagement widmen.

Kundeninteraktionsmetrik	Daten für 2023
Durchschnittliche Kundeninteraktionshäufigkeit	3,7 Mal pro Quartal
Persönliche Bankbeziehungsmanager	387 Profis
Kundenbindungsrate	84.6%

Online- und Mobile-Banking-Unterstützung

First Merchants bietet digitale Bankdienstleistungen mit den folgenden Kennzahlen an:

• Mobile-Banking-Nutzer: 213.456 aktive Nutzer
• Transaktionen über Online-Banking-Plattformen: 4,2 Millionen monatlich
• Downloadrate mobiler Apps: 67.890 jährliche Downloads

Community-orientierter Banking-Ansatz

Kennzahlen zum Community-Engagement für 2023:

Kategorie „Gemeinschaftliche Investitionen“.	Gesamtbetrag
Lokale Gemeinschaftsinvestitionen	3,7 Millionen US-Dollar
Finanzierung für Kleinunternehmen	12,5 Millionen US-Dollar
Lokale Spenden für wohltätige Zwecke	1,2 Millionen US-Dollar

Dedizierte Kundendienstkanäle

Die Kundendienstinfrastruktur umfasst:

• 24/7-Kundendienst-Callcenter
• Durchschnittliche Antwortzeit: 2,3 Minuten
• Kundendienstmitarbeiter: 214 Mitarbeiter

Maßgeschneiderte Finanzberatungsdienste

Aufschlüsselung der spezialisierten Finanzberatung:

Beratungsdienst	Jährliches Kundenvolumen	Durchschnittlicher Beratungswert
Vermögensverwaltung	4.890 Kunden	2,3 Millionen US-Dollar
Ruhestandsplanung	6.210 Kunden	1,7 Millionen US-Dollar
Unternehmensbankberatung	2.340 Kunden	4,1 Millionen US-Dollar

First Merchants Corporation (FRME) – Geschäftsmodell: Kanäle

Physisches Filialnetz

Ab 2023 betreibt die First Merchants Corporation 129 Bankstandorte in Indiana, Ohio, Illinois und Kentucky.

Staat	Anzahl der Filialen
Indiana	78
Ohio	27
Illinois	14
Kentucky	10

Digitale Banking-Plattformen

First Merchants bietet umfassende digitale Banking-Lösungen mit den folgenden Funktionen:

• Online-Kontozugriff rund um die Uhr
• Echtzeit-Transaktionsüberwachung
• Rechnungszahlungsdienste
• Kontoauszugs-Downloads

Mobile-Banking-Anwendungen

Zu den Funktionen der mobilen App gehören:

Mobile App-Fähigkeit	Verfügbarkeit
Mobile Scheckeinzahlung	Ja
Peer-to-Peer-Zahlungen	Ja
Kartenkontrollen	Ja
Geldautomaten-Locator	Ja

Online-Banking-Websites

First Merchants bietet sichere Online-Banking-Plattformen für Privat- und Geschäftskunden mit Verschlüsselungsprotokollen.

Kundendienst-Callcenter

First Merchants betreibt Kundensupportzentren mit den folgenden Kontaktdaten:

• Persönlicher Banking-Support: 1-800-205-3464
• Business-Banking-Support: 1-800-260-5265
• Öffnungszeiten: Montag–Freitag, 8:00–18:00 Uhr EST

First Merchants Corporation (FRME) – Geschäftsmodell: Kundensegmente

Kleine bis mittlere Unternehmen

First Merchants betreut ab dem vierten Quartal 2023 4.600 gewerbliche Geschäftskunden in seinen regionalen Märkten. Gesamtportfolio an gewerblichen Krediten: 4,2 Milliarden US-Dollar.

Geschäftssegment	Anzahl der Kunden	Durchschnittliche Kredithöhe
Herstellung	872	1,3 Millionen US-Dollar
Gesundheitswesen	623	$980,000
Professionelle Dienstleistungen	1,145	$750,000

Privatkunden im Privatkundengeschäft

Gesamtzahl der Retail-Banking-Kunden: 385.000 zum 31. Dezember 2023.

• Persönliche Girokonten: 212.000
• Sparkonten: 173.000
• Durchschnittlicher Kundeneinlagensaldo: 47.500 $

Firmenkunden

Das Firmenkundensegment repräsentiert eine Bilanzsumme von 2,8 Milliarden US-Dollar. Wichtige Kennzahlen für Firmenkunden:

Unternehmenssegment	Kundenanzahl	Gesamtes verwaltetes Vermögen
Mittelmarkt	890	1,6 Milliarden US-Dollar
Großes Unternehmen	156	1,2 Milliarden US-Dollar

Vermögende Privatpersonen

Das Segment Vermögensverwaltung betreut 3.200 vermögende Kunden mit einem Gesamtvermögen von 680 Millionen US-Dollar.

Vermögensstufe	Kundenanzahl	Durchschnittlicher Portfoliowert
Ultrahohes Vermögen	412	3,2 Millionen US-Dollar
Hohes Vermögen	2,788	$780,000

Fokus auf lokale Gemeinschaft und regionale Märkte

Wir sind in fünf Bundesstaaten tätig: Indiana, Illinois, Ohio, Michigan und Kentucky. Gesamtmarktabdeckung: 142 Bankstandorte.

• Indiana: 89 Standorte
• Ohio: 23 Standorte
• Illinois: 16 Standorte
• Michigan: 8 Standorte
• Kentucky: 6 Standorte

First Merchants Corporation (FRME) – Geschäftsmodell: Kostenstruktur

Gehälter und Vergütung der Mitarbeiter

Im Jahresbericht 2023 meldete die First Merchants Corporation einen Personalaufwand von insgesamt 262,5 Millionen US-Dollar.

Vergütungskategorie	Betrag ($)
Grundgehälter	178,3 Millionen US-Dollar
Leistungsprämien	42,6 Millionen US-Dollar
Aktienbasierte Vergütung	41,6 Millionen US-Dollar

Wartung von Technologie und Infrastruktur

Die Kosten für die Technologieinfrastruktur beliefen sich im Jahr 2023 auf insgesamt 47,8 Millionen US-Dollar.

• Investitionen in IT-Hardware: 18,2 Millionen US-Dollar
• Softwarelizenzierung: 12,5 Millionen US-Dollar
• Cybersicherheitssysteme: 9,3 Millionen US-Dollar
• Cloud-Computing-Dienste: 7,8 Millionen US-Dollar

Betriebskosten des Filialnetzes

Die gesamten Betriebskosten des Filialnetzes beliefen sich im Jahr 2023 auf 89,4 Millionen US-Dollar.

Ausgabenkategorie	Betrag ($)
Miete und Ausstattung	42,6 Millionen US-Dollar
Dienstprogramme	16,3 Millionen US-Dollar
Wartung	30,5 Millionen US-Dollar

Kosten für die Einhaltung gesetzlicher Vorschriften

Die Compliance-Aufwendungen für 2023 beliefen sich auf 35,7 Millionen US-Dollar.

• Rechts- und Regulierungsberatung: 15,2 Millionen US-Dollar
• Compliance-Schulung: 6,5 Millionen US-Dollar
• Berichterstattung und Dokumentation: 14 Millionen US-Dollar

Aufwendungen für Marketing und Kundenakquise

Die gesamten Marketingausgaben beliefen sich im Jahr 2023 auf 22,9 Millionen US-Dollar.

Marketingkanal	Ausgeben ($)
Digitales Marketing	9,6 Millionen US-Dollar
Traditionelle Werbung	7,3 Millionen US-Dollar
Kundengewinnungsprogramme	6 Millionen Dollar

First Merchants Corporation (FRME) – Geschäftsmodell: Einnahmequellen

Zinserträge aus Krediten und Investitionen

Für das Geschäftsjahr 2023 meldete First Merchants Corporation einen Nettozinsertrag von 440,1 Millionen US-Dollar. Das Kreditportfolio generierte insgesamt rund 526,8 Millionen US-Dollar an Zinsen und Gebühren.

Umsatzkategorie	Betrag (2023)
Gesamter Zinsertrag	526,8 Millionen US-Dollar
Nettozinsertrag	440,1 Millionen US-Dollar

Gebühren für Bankdienstleistungen

Servicegebühren auf Einlagenkonten generierten im Jahr 2023 Einnahmen in Höhe von 46,3 Millionen US-Dollar.

• Einnahmen aus Nebenkosten: 46,3 Millionen US-Dollar
• Kartenbezogene Servicegebühren: 18,7 Millionen US-Dollar

Beratungsdienstleistungen im Bereich Vermögensverwaltung

Vermögensverwaltung und Treuhanddienste trugen im Jahr 2023 24,5 Millionen US-Dollar zum Umsatz des Unternehmens bei.

Transaktionsgebühren

Die transaktionsbezogenen Gebühren beliefen sich für das Geschäftsjahr 2023 auf 22,1 Millionen US-Dollar.

Art der Transaktionsgebühr	Umsatz (2023)
Gebühren für Geldautomatentransaktionen	8,6 Millionen US-Dollar
Electronic-Banking-Gebühren	13,5 Millionen US-Dollar

Provisionen für Anlageprodukte

Die Provisionen für Anlageprodukte erreichten im Jahr 2023 17,6 Millionen US-Dollar.

• Provisionen für Investmentfonds: 9,2 Millionen US-Dollar
• Maklerdienstprovisionen: 8,4 Millionen US-Dollar

Gesamteinnahmequellen für 2023: 558,9 Millionen US-Dollar

First Merchants Corporation (FRME) - Canvas Business Model: Value Propositions

You're looking at the core value First Merchants Corporation delivers to its clients and the market as of late 2025. It's built on a foundation of deep regional presence and disciplined execution, which translates directly into tangible financial results for borrowers and investors alike.

A primary value driver is the focus on relationship-based commercial loan growth. This isn't just about volume; it's about earning business through dedicated service. For instance, in the third quarter of 2025, total loans grew by $288.8 million on a linked-quarter basis, which is an annualized increase of 8.7%. This growth was heavily weighted toward the Commercial & Industrial segment, showing that the relationship focus is working in key lending areas.

First Merchants Corporation offers comprehensive financial services for businesses and consumers across its footprint in Indiana, Ohio, and Michigan. The business model is diversified across distinct service lines, which you can see here:

• Commercial Banking
• Consumer Banking
• Mortgage Banking
• Private Wealth Advisors

This breadth allows the institution to be a full-service partner. As of the end of the third quarter of 2025, the total asset size stood at $18.8 billion.

The execution of this model results in strong profitability. You can see the discipline in the key performance indicators from the third quarter of 2025, which clearly supports the value proposition of reliable returns:

Metric	Value (Q3 2025)
Annualized Return on Assets (ROA)	1.22%
Adjusted Earnings Per Share (EPS)	$0.99
Efficiency Ratio (Adjusted)	54.56%
Total Loans	$13.6 billion

The ROA of 1.22% annualized in Q3 2025 places First Merchants Corporation in the top-quartile relative to its peers, which is a direct result of disciplined execution.

Underpinning the commercial success is a deep community commitment and local decision-making. Headquartered in Muncie, Indiana, the bank emphasizes its regional focus, recently announcing the acquisition of First Savings Financial Group to expand its presence into Southern Indiana and the Louisville MSA. The CEO has explicitly stated the commitment to supporting clients and communities, which is a core part of the value offered over larger, more centralized institutions.

Finally, the offering includes full-service Wealth Management and Trust offerings through First Merchants Private Wealth Advisors. This division provides expert-led solutions for intergenerational financial prosperity. To give you a sense of the scale managed by this division, as of Q1 2025, the bank managed $5.8 billion in assets under advisement. Furthermore, the firm's latest 13F filing in September 2025 disclosed 224 equity positions with a total market value of $3 billion.

Finance: draft a comparison table of Q1 2025 vs Q3 2025 ROA by next Tuesday.

First Merchants Corporation (FRME) - Canvas Business Model: Customer Relationships

First Merchants Corporation emphasizes a relationship-driven approach, blending personalized service with modern digital access across its footprint in Indiana, Ohio, and Michigan. The bank operates more than 111 banking center locations as of September 30, 2025, supporting its community-centric model.

Dedicated Commercial Relationship Managers

The focus on commercial lending, which drove portfolio expansion with Commercial & Industrial (C&I) loans growing $66M in Q4 2024 and loan growth accelerating in 2025, suggests a strong reliance on dedicated relationship managers for business clients. This personalized approach is key to securing the loan growth management targeted for mid-to-high single digits in 2025. The bank also announced the addition of a Director of Nonprofit Services in November 2025, further segmenting its relationship management expertise.

Community-based, in-person service model

First Merchants Corporation positions itself as a community bank, prioritizing local needs over a broad, one-size-fits-all national approach. This model is supported by a significant commitment to local investment; the bank has a five-year Community Benefits Plan, through 2025, committing to lend or invest $1.4 billion to communities of color and to low- and moderate-income (LMI) borrowers and communities. The bank offers localized services, including tailored financial products and support for local industry, which is the hallmark of this relationship style. Customer service support is available weekdays from 8 a.m. - 8 p.m. ET and Saturdays from 9 a.m. - 3 p.m. ET.

High-touch Private Banking for affluent clients

The Private Wealth Advisors division provides a high-touch service for affluent clients and institutions. While specific 2025 Assets Under Management (AUM) figures aren't explicitly stated for late 2025, as of late 2024, First Merchants Private Wealth Advisors managed over $4 billion in assets and advised on over $8 billion in assets. This segment is a key revenue driver, contributing 28% of the Noninterest Income stream in the second quarter of 2025. The firm has been investing in technology, like implementing the SS&C Trust Suite in late 2024, to ensure scalability for its high-touch client base.

Self-service digital and mobile banking platforms

First Merchants Corporation supports its in-person model with robust digital capabilities, offering a mobile app for on-the-go banking. The company has been upgrading its technology, including its online and account origination platforms, to simplify the client experience as part of its 2025 strategic focus. The strength of these digital channels helps maintain core relationship balances even as the bank manages its overall deposit mix.

Proactive management of deposit costs with clients

Managing deposit costs is a stated priority, which involves active management of client deposit relationships to optimize funding costs. The bank focuses on building core deposit relationships while actively managing higher-cost categories like public funds and maturity deposits. The total cost of deposits declined by 20 basis points to 2.23% in the first quarter of 2025. This proactive management contributed to margin stability expectations for 2025. Total deposits stood at $14.9 billion as of the third quarter of 2025.

Here's a look at the deposit composition as reported in Q2 2025, which reflects the success of managing these client funding relationships:

Deposit Metric	Value as of Q2 2025	Context/Change
Total Deposits	$14.8 billion	As of quarter-end Q2 2025.
Core Deposits Percentage	91%	Percentage of total deposits.
Noninterest-Bearing Accounts	15%	Percentage of total deposits.
Deposits Yielding 0-5 bps	Approximately 34%	Represents a stable, cost-effective funding source.
Total Cost of Deposits	2.23%	Reported in Q1 2025, down 20 basis points from prior.

Customer-related fees, a direct measure of transactional engagement, totaled $29.4 million in Q2 2025, marking an increase of $2.3 million over the prior quarter. This fee income stream, which also includes service charges at 27% of Noninterest Income, shows the value derived from the active client base.

The relationship strategy is clearly tied to financial outcomes; management expressed confidence in continuing to reduce deposit costs in 2025, noting December 2024 costs were at 2.33%.

• Customer-Related Fees (Q2 2025): $29.4 million
• Increase in Customer-Related Fees (QoQ): $2.3 million
• Total Assets (Q3 2025): $18.8 billion
• Loan to Deposit Ratio (Q3 2025): 91.6%

If onboarding takes 14+ days, churn risk rises.

Finance: draft 13-week cash view by Friday.

First Merchants Corporation (FRME) - Canvas Business Model: Channels

You're looking at how First Merchants Corporation gets its products and services-from basic checking to complex commercial loans-into the hands of its customers as of late 2025. The channel strategy balances a strong physical presence with necessary digital tools, especially as the company integrates its recent acquisition.

Physical branch network (expanding into Louisville MSA)

First Merchants Corporation maintains a significant physical footprint across Indiana, Michigan, and Ohio. As of the third quarter of 2025, the Corporation operated more than 111 banking center locations across these core states. This network is set for an immediate expansion due to the announced acquisition of First Savings Financial Group, Inc., which is expected to close in the first quarter of 2026.

This transaction is key for channel growth, specifically entering the Louisville, Kentucky, market. First Savings adds 16 bank branches in southern Indiana, with 12 of those branches situated within the greater Louisville Metropolitan Statistical Area (MSA). Once the integration is complete, the combined First Merchants banner will operate 127 branches across Indiana, Michigan, and Ohio. This move positions First Merchants to compete in the Louisville MSA, which represents a $45 billion deposit market where First Savings currently holds a 3% share.

Here is a look at the physical footprint, current and projected:

Channel Component	As of Q3 2025 (FRME Only)	Projected Post-Acquisition (Q1 2026 Close)
Total Banking Centers	More than 111	127
States Served	Indiana, Michigan, Ohio	Indiana, Michigan, Ohio
Louisville MSA Branch Count	Minimal/None	12 (from First Savings)

Digital and mobile banking applications

The bank actively uses technology to serve customers, having completed upgrades to its online banking platforms, mobile apps, and real-time wire systems. This digital focus helps streamline operations and enhance customer experience. The wealth management division also utilizes digital channels, managing $5.8 billion in assets under advisement as of the first quarter of 2025. While specific late-2025 mobile adoption rates aren't public, the historical trend showed a nearly 20% increase in digital banking activity since the start of the pandemic.

• Upgraded online banking platforms.
• Mobile apps for on-the-go account management.
• Virtual connection options for business bankers.

Commercial Loan Production Offices

First Merchants Corporation supports its commercial lending efforts through dedicated centers and offices, which are distinct from full-service banking centers. These locations focus on relationship-based business banking and lending solutions. For instance, the bank operates a South Bend Commercial Lending Center and a Commercial Lending Center in Wyandotte, MI. Historically, First Merchants had a plan to open five new branches or loan production offices as part of a $1.4 billion community investment initiative. The First Savings acquisition also bolsters SBA lending capacity, which was a significant area for them, having closed $111 million in 7(a) loans in their 2025 fiscal year so far, compared to First Merchants' just under $8 million.

Customer Service Center (call center)

For customers needing direct support outside of a branch visit, First Merchants provides a centralized service channel. You can reach the general support line at 1.866.833.0050. The Wealth Management team, which handles specialized advisory services, is staffed weekdays from 8 a.m. until 6:00 p.m. EST. The bank emphasizes that its bankers are ready to listen attentively and work with clients to find solutions.

ATM network access

The physical network is supplemented by an ATM network that the bank has committed to enhancing across its footprint. Customers can only make ATM deposits at First Merchants Bank ATM machine locations. While the exact number of ATMs as of late 2025 isn't explicitly stated, the bank provides a locator tool for customers to find these access points alongside their banking centers.

First Merchants Corporation (FRME) - Canvas Business Model: Customer Segments

You're looking at the core client base for First Merchants Corporation (FRME) as of late 2025. This isn't just a list; these are the groups driving the balance sheet, especially the loan growth you see in their filings. First Merchants Corporation, the largest financial holding company based in Central Indiana, focuses its operations across Indiana, Michigan, and Ohio. As of September 30, 2025, the total asset size stood at $18.8 billion.

The customer segments are served through First Merchants Bank and First Merchants Private Wealth Advisors, operating across more than 111 banking center locations in their core Midwest markets.

Commercial & Industrial (C&I) businesses (primary loan growth driver)

This is where the action is for loan expansion. The overall loan portfolio remains heavily weighted toward commercial business, making up approximately 75% of total loans as of mid-2025. The C&I segment is consistently cited as the primary driver of this growth. For instance, in the second quarter of 2025, commercial loan growth was strong at an annualized rate of 10.7%. Specifically, C&I loans increased by $147 million in Q2 2025, following a $248 million increase in Q1 2025, often tied to funding capital expenditure (CapEx) and M&A pipelines.

Retail consumers in Indiana, Ohio, and Michigan

Retail consumers form the base for consumer banking and mortgage activities. While commercial lending drives the portfolio composition, consumer loans still saw positive momentum, growing by $36 million or 4.4% in the second quarter of 2025. The consumer deposit base is also critical, though commercial deposits saw larger fluctuations. The bank is focused on providing attentive financial solutions to these diverse communities.

Small to mid-sized businesses (SMBs)

SMBs are largely captured within the broader Commercial Banking segment, which includes C&I and other business lending. The growth in C&I loans reflects activity from these businesses seeking financing for expansion. The bank explicitly mentions local bankers who know your small business as part of its offering.

High-net-worth individuals (Wealth Management clients)

This group is served by First Merchants Private Wealth Advisors. They seek more than just one-off transactions, focusing on estate planning and comprehensive financial management. As of the first quarter of 2025, the wealth management division managed $5.8 billion in assets under advisement. Wealth management is also a significant contributor to fee income, alongside service charges.

Real estate developers and investors

This group falls under the commercial lending umbrella, specifically the Investment Real Estate (IRE) portfolio. While C&I is the primary growth engine, the IRE portfolio saw a decline of $96 million in Q1 2025, which was offset by C&I growth. The bank maintains a disciplined underwriting approach in this area amid market dynamics.

Here's a quick look at how the major segments stack up based on recent financial reporting:

Customer Segment Focus	Key Metric	Latest Reported Value (2025)	Reporting Period
Overall Footprint	Total Banking Centers	More than 111	As of Q3 2025
Commercial Banking (C&I/SMB/RE)	Loan Portfolio Percentage	Approximately 75%	Q2 2025
Commercial & Industrial (C&I)	Loan Growth (Annualized)	10.7%	Q2 2025
Retail Consumers	Consumer Loan Growth (Annualized)	4.4%	Q2 2025
Wealth Management (HNW)	Assets Under Advisement	$5.8 billion	Q1 2025

The focus on the Midwest markets-Indiana, Ohio, and Michigan-is clear, as the bank continues to expand its presence there, including a pending strategic acquisition announced in Q3 2025 that adds exposure to Southern Indiana and the Louisville MSA.

• Geographic Core: Indiana, Ohio, and Michigan.
• Total Assets: $18.8 billion.
• Total Loans: $13.3 billion.
• Commercial Loan Growth Driver: C&I pipeline funding.
• Wealth Management Focus: Estate planning and legacy securing.

First Merchants Corporation (FRME) - Canvas Business Model: Cost Structure

You're looking at the expenses First Merchants Corporation incurs to run its business as of late 2025, which is heavily influenced by the competitive deposit environment and recent strategic moves like the First Savings acquisition.

Interest expense on deposits (rising due to competitive dynamics)

The cost of funding is a major component, and you see the pressure from competitive dynamics in the deposit rates. For the first quarter of 2025, the Interest Expense on Interest-bearing Deposits was reported at $\text{\$89,835 thousand}$. By the third quarter of 2025, the total cost of deposits had climbed, increasing $\text{14 basis points}$ to reach $\text{2.44%}$. This trend shows that attracting and retaining deposits costs more now.

Personnel expenses (salaries and incentives)

Salaries and benefits are a significant, recurring cost. For the third quarter of 2025, First Merchants Corporation reported $\text{\$57,317 thousand}$ for Salaries and employee benefits. Looking at the year-to-date through Q3 2025, this expense category totaled $\text{\$166,826 thousand}$.

Data processing and technology infrastructure costs

Technology is a necessary investment, but it shows up as a recurring operating cost. Outside data processing fees for the third quarter of 2025 were $\text{\$6,943 thousand}$. This followed a quarter where noninterest expense rose due to higher data processing costs. Management has been focused on upgrades to platforms like account origination and online systems, which are part of this cost base.

Occupancy and equipment costs for 100+ banking centers

Maintaining the physical footprint-over $\text{100 banking centers}$-involves fixed costs for space and hardware. Following the announced acquisition, the combined entity is projected to operate $\text{127 branches}$ across Indiana, Michigan, and Ohio. Here's a breakdown of the recent quarterly costs for the existing structure:

Cost Component	Q3 2025 (in thousands)	Q2 2025 (in thousands)
Net Occupancy	$7,057	$6,994
Equipment	$6,998	$6,949

It's clear these occupancy and equipment costs are relatively stable quarter-over-quarter.

Acquisition and integration expenses (e.g., First Savings)

Strategic growth through acquisition brings one-time and short-term integration costs. First Merchants Corporation announced the all-stock acquisition of First Savings Financial Group, valued at approximately $\text{\$241.3 million}$. For the third quarter of 2025, noninterest expense specifically included $\text{\$0.9 million}$ related to severance and acquisition costs. The integration is targeted for completion during the second quarter of 2026.

You need to track those integration costs closely as they hit the expense line item.

• Salaries and employee benefits (Q3 2025): $\text{\$57,317 thousand}$
• Net Occupancy (Q3 2025): $\text{\$7,057 thousand}$
• Equipment (Q3 2025): $\text{\$6,998 thousand}$
• Outside data processing fees (Q3 2025): $\text{\$6,943 thousand}$
• Acquisition-related severance and costs (Q3 2025): $\text{\$0.9 million}$

Finance: draft 13-week cash view by Friday.

First Merchants Corporation (FRME) - Canvas Business Model: Revenue Streams

You're looking at how First Merchants Corporation actually brings in the money, which for a bank like FRME, boils down to two main buckets: the interest they earn and the fees they charge. As of late 2025, specifically looking at the third quarter results, the core engine is definitely the lending side.

Net Interest Income (NII) is the big one, representing the difference between the interest First Merchants Corporation earns on its assets, like loans, and the interest it pays out on liabilities, like deposits. For Q3 2025, this key metric came in at $133.7 million. This shows the primary value capture mechanism for the business. The Net Interest Margin (NIM) for the quarter was reported at 3.24% (fully tax equivalent), which management noted was essentially stable compared to the prior quarter.

The foundation of that NII is the loan book. As of the end of Q3 2025, the total loan portfolio for First Merchants Corporation stood at $13.6 billion. This portfolio saw significant expansion, growing by $288.8 million, or 8.7% annualized, on a linked quarter basis. Growth was primarily noted in the Commercial & Industrial segment. This entire portfolio generates the interest income component of the NII.

Here's a quick look at the scale of the asset base driving that interest revenue:

Metric	Value (Q3 2025 End)
Total Loans	$13.6 billion
Loan Growth (Linked Quarter Annualized)	8.7%
Loan Growth (Last Twelve Months)	7.3%

The second major revenue stream is Noninterest Income, which hit $32.5 million in Q3 2025. This figure was up 30.6% from the third quarter of 2024, though linked-quarter growth was more modest at 3.8%. This income is derived from various fee-based services that don't involve direct lending interest.

The components making up this Noninterest Income are crucial for diversification. You want to see these fee lines holding steady or growing, as they are less sensitive to interest rate swings than NII. The key fee-based drivers for First Merchants Corporation include:

• Treasury Management fees
• Card Payment fees
• Wealth Management and Trust service fees

Honestly, customer-related fees were reported as stable on a linked quarter basis in Q3 2025, which is a good sign of consistent service revenue. The year-over-year increase in total Noninterest Income was partially due to realized losses on securities sales in the prior year period, so you have to look past that one-time event to see the true fee-based performance. The total revenue picture for the quarter, combining NII and Noninterest Income, supported pre-tax, pre-provision earnings of $70.5 million.

Finance: draft Q4 2025 fee income projection by next Tuesday.