#1Ⓡ First Merchants Corporation NASDAQ: FRME INVESTOR UPDATE Fourth Quarter 2023 First Merchants Corporation | 200 E. Jackson St., P.O. Box 792, Muncie, IN 47305 | 765.747.1500#2Forward Looking Statement This presentation contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can often, but not always, be identified by the use of words like "believe", "continue", "pattern", "estimate", "project", "intend", "anticipate", "expect" and similar expressions or future or conditional verbs such as "will", "would", "should", "could", "might", "can", "may", or similar expressions. These forward-looking statements include, but are not limited to, statements relating to First Merchants' goals, intentions and expectations; statements regarding the First Merchants' business plan and growth strategies; statements regarding the asset quality of First Merchants' loan and investment portfolios; and estimates of First Merchants' risks and future costs and benefits. These forward-looking statements are subject to significant risks, assumptions and uncertainties that may cause results to differ materially from those set forth in forward-looking statements, including, among other things: possible changes in economic and business conditions; the existence or exacerbation of general geopolitical instability and uncertainty; the effects of a pandemic or other unforeseeable event; the ability of First Merchants to integrate recent acquisitions and attract new customers; possible changes in monetary and fiscal policies, and laws and regulations; the effects of easing restrictions on participants in the financial services industry; the cost and other effects of legal and administrative cases; possible changes in the credit worthiness of customers and the possible impairment of collectability of loans; fluctuations in market rates of interest; competitive factors in the banking industry; changes in the banking legislation or regulatory requirements of federal and state agencies applicable to bank holding companies and banks like First Merchants' affiliate bank; continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; changes in market, economic, operational, liquidity (including the ability to grow and maintain core deposits and retain large, uninsured deposits), credit and interest rate risks associated with the First Merchants' business; and other risks and factors identified in each of First Merchants' filings with the Securities and Exchange Commission. First Merchants undertakes no obligation to update any forward-looking statement, whether written or oral, relating to the matters discussed in this presentation or press release. In addition, the company's past results of operations do not necessarily indicate its anticipated future results. NON-GAAP FINANCIAL MEASURES These slides contain non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of the registrant's historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet or statement of cash flows (or equivalent statements) of the issuer; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. In this regard, GAAP refers to generally accepted accounting principles in the United States. Pursuant to the requirements of Regulation G, First Merchants Corporation has provided reconciliations within the slides, as necessary, of the non-GAAP financial measure to the most directly comparable GAAP financial measure. First Merchants Corporation Helping you prosper#3Executive Management Team FMB: 26 Yrs Banking: 26 Yrs FMB: 16 Yrs Banking: 36 Yrs FMB: 16 Yrs Banking: 34 Yrs FMB: 8 Yrs Banking: 20 Yrs Mark Hardwick Chief Executive Officer Mark K. Hardwick currently serves as the Chief Executive Officer of First Merchants Corporation and First Merchants Bank. Mark joined First Merchants in November of 1997 as Corporate Controller and was promoted to Chief Financial Officer in April of 2002. In 2016, Mark's title expanded to include Chief Operating Officer, overseeing the leadership responsibilities for finance, operations, technology, risk, legal, and facilities for the corporation. Prior to joining First Merchants Corporation, Mark served as a senior accountant with BKD, LLP in Indianapolis. Mark is a graduate of Ball State University with a Master of Business Administration and Bachelor's degree in Accounting. He is also a certified public accountant and a graduate of the Stonier School of Banking. Mike Stewart President Mike Stewart currently serves as President for First Merchants Corporation and First Merchants Bank overseeing the Commercial, Private Wealth, and Consumer Lines of Business for the Bank. Mike joined the bank in 2008 as Chief Banking Officer. Prior to joining First Merchants, Mike spent 18 years with National City Bank in various commercial sales and credit roles. Mike has a Master of Business Administration from Butler University and a Bachelor's degree in Finance from Millikin University. John Martin Chief Credit Officer John Martin currently serves as Executive Vice President and Chief Credit Officer of First Merchants Corporation overseeing the Commercial, Small Business and Consumer Credit functions, as well as Bank Operations and the Mortgage Line of Business. Prior to joining First Merchants, John spent 18 years with National City Bank in various sales and senior credit roles. John is a graduate of Indiana University where he earned a Bachelor of Arts in Economics. He also holds a Master of Business Administration Finance from Case Western Reserve University. Michele Kawiecki Chief Financial Officer Michele Kawiecki currently serves as Executive Vice President and Chief Financial Officer for First Merchants Corporation and First Merchants Bank. Michele joined First Merchants in 2015 as Director of Finance. Prior to joining First Merchants, Michele spent 12 years with UMB Financial Corporation in Kansas City, Missouri having served as Senior Vice President of Capital Management and Assistant Treasurer; Director of Corporate Development and the Enterprise Project Management Office; and Chief Risk Officer. Prior to UMB, she worked for PriceWaterhouseCoopers LLP as an Audit Manager. Michele earned both a Master of Science in Accounting and an Executive Master of Business Administration from the University of Missouri-Kansas City and a Bachelor's degree in Accounting from Dakota Wesleyan University. First Merchants Corporation Helping you prosper#4First Merchants Corporation (NASDAQ: FRME) Largest financial services holding company headquartered in Central Indiana ILLINOIS MICHIGAN INDIANA 116 Banking Centers First Merchants Corporation Helping you prosper OHIO Financial Highlights as of 12/31/2023 $18.3 Billion Total Assets $12.5 Billion Total Loans $14.8 Billion Total Deposits Forbes 2023 WORLD'S BEST BANKS $7.3 Billion Assets Under Advisement* *Assets Under Management - $3.7 Billion Moody's a3 Baseline Credit Assessment¹ POWERED BY STATISTA BEST EMPLOYERS IN OHIO 2023 CRAIN'S CLEVELAND BUSINESS ★★★ AMERICA'S BEST BANKS 2023 Newsweek Best Company LEADERSHIP YTD ROAA: YTD Return on TCE 2023 TCE/TA: Market Cap Dividend Yield: Price / Tangible Book: Price / LTM EPS: AMERICAN BANKER. Best Banks to Work For Best Company WORK-LIFE BALANCE 2023 Best CEOS for WOMEN 2023 USED WITH PERMISSK 1.23% 16.76% 8.44% $2.2B 3.61% 1.48x 9.9x Forbes 2023 AMERICA'S BEST BANKS ¹Moody's Credit Opinion - First Merchants Corporation, October 25, 2022, baseline Credit Assessment (BCA) reflects a bank's standalone credit strength Best Company CAREER GROWTH 2023 4#5Highlights Fourth Quarter Net Income & EPS¹ ROA (Annualized) $42.0 Million 0.92% ROA $0.71 Per Share 1.33% PTPP ROA² Annualized loan growth of 6.6% on a linked quarter basis, with new/renewed loan yields averaging 8.01% for the quarter Annualized deposit growth of 4.8% on a linked quarter basis Reported EPS of $0.71 compared to $1.19 in 4Q22. Excluding one-time charges, current EPS of $0.87 compared to $1.19 in 4Q22¹,2 Year-to-Date I ■ ■ ■ ■ ■ ■ ■ Net Income & EPS¹ $221.9 Million $3.73 Per Share ROA (Annualized) 1.23% ROA First Merchants Corporation Helping you prosper ROE & ROTCE (Annualized) 7.89% ROE 12.75% ROTCE² ROE & ROTCE (Annualized) 10.43% ROE 16.76% ROTCE² 1.51% PTPP ROA² Loan growth of 5.1% when adjusted for non-relationship, term loan B portfolio loan sale of $116 million in second quarter Deposit growth of 3.1% Improved liquidity position by $585 million; increased cash $300 million and lowered borrowings $285 million Increased tangible common equity by $222 million and tangible common equity ratio from 7.34% to 8.44% Maintained strong credit quality and a robust allowance for credit losses Reported EPS of $3.73 compared to $3.81 in 2022. Excluding PPP income, expenses related to the Level One acquisition, and one-time charges, current EPS of $3.89 compared to $4.20 in 2022¹,2 ¹Net Income and EPS reported on a diluted basis and for common stockholders 2See "Non-GAAP Financial Information" for reconciliation#6Business Strategy Commercial Banking Full Spectrum of Debt Capital and Treasury Service Offerings Located in Prime Growth Markets > Small Business & SBA > Middle Market C&I > Investment Real Estate > Public Finance > Sponsor Finance > Asset Based Lending > Syndications > Treasury Management Services > Merchant Processing Services Mortgage Banking Offering a full suite of mortgage solutions to assist with purchase, construction, renovation, and home finance > Strengthen existing Commercial, Consumer and Private Wealth relationships > Create new household relationships > Support underserved borrowers and neighborhoods > Deliver solutions through a personalized, efficient, and scalable model First Merchants Corporation Helping you prosper Consumer Banking Full Spectrum of Consumer Deposit and Lending Offerings Supported by: > Talented, Customer Service Oriented Banking Center and Call Center Professionals > Competitive Digital Solutions ▪ Deposit and CRM ▪ Online Banking ▪ Mobile Banking > Diverse Locations in Stable Rural and Growth Metro Markets Private Wealth Advisors Comprehensive and coordinated approach to personal wealth management Expertise in: > Investment Management > Private Banking > Fiduciary Estate > Financial Planning Strengthen commercial relationships with personal services for executives/owners and retirement plan services for companies Partner with consumer to offer personal investment advice through First Merchants Investment Services 6#7Business Highlights Northwest Indiana Lake County Rank: 4 Lafayette MSA Rank: 2 Deposits: $3.4B Loans: $2.3B Michigan Monroe MSA Rank: 1. Detroit MSA Rank: 9 Deposits: $2.7B Loans: $2.6B Northeast Indiana Muncie MSA Rank: 1 Ft Wayne MSA Rank: 3 Deposits: $4.4B Loans: $1.9B Indianapolis Indianapolis MSA Rank: 8 Deposits: $3.6B Loans: $4.2B Columbus Columbus MSA Rank: 14 Deposits: $0.7B Loans: $1.5B MSA and County ranking data per FDIC ¹Commercial includes Municipal deposits and Consumer includes Private Wealth and Mortgage First Merchants Corporation Helping you prosper Commercial Consumer Total Loan Growth QTD Total Loan Growth YTD *Adjusted Total Loan Growth YTD I ■ ■ Loan Growth Annualized¹ 4Q23 Balance ($B) Commercial Consumer ■ *During the second quarter, the non-relationship, term loan B portfolio of $116 million was sold with a gain ■ $9.5 $2.9 Strong Commercial growth in the quarter driven through both the middle market, C&I group and the Investment Real Estate team As a result of strong loan closings during the quarter, the total Commercial pipeline softened; still at levels to yield growth in 2024 Consumer growth was attributed to increases in Installment, Private Banking, and Residential Mortgage Total Deposit Growth QTD Total Deposit Growth YTD Deposit Growth Annualized¹ 4Q23 Balance ($B) Growth 8.0% 2.7% 6.6% 4.1% 5.1% $7.4 $6.4 Growth 5.6% 11.1% 4.8% 3.1% Strong deposit growth continued for the quarter and year-to-date The Consumer line of business showed strong growth in both primary account balances and continued growth in money markets and CDs with less than one-year maturities 7#8Fourth Quarter Financial Results 1. Total Assets Total Loans Investments 6. 7. ($M except per share data) 2. 3. 4. Deposits 5. Total Equity 8. 9. 10. Balance Sheet & Asset Quality 25. 26. 27. 28. TCE Ratio Total RBC Ratio ACL / Loans NCOS / Avg Loans NPAS +90PD / Assets Summary Income Statement Net Interest Income Provision for Loan Losses 11. 12. 13. Noninterest Income 14. Noninterest Expense 15. Pre-tax Income 16. Provision for Taxes 17. Net Income 18. Preferred Stock Dividends 19. Net Income Available to Common Stockholders 20. ROAA 21. ROAE 22. ROTCE 23. Net Interest Margin 24. Efficiency Ratio Per Share Earnings per Diluted Share Tangible Book Value per Share Dividend per Share Dividend Payout Ratio 12/31/22 3/31/23 6/30/23 9/30/23 7.34% $17,938.3 $18,178.9 $17,968.4 $17,996.6 $18,309.5 12,013.0 12,250.9 12,297.5 12,302.4 12,505.0 4,263.8 4,057.4 3,891.5 3,713.7 3,811.4 14,382.7 14,703.3 14,581.2 14,646.6 14,821.5 2,034.8 2,122.4 2,145.6 2,092.6 2,247.7 13.08 1.86 0.12 0.28 $149.0 0.0 24.1 89.7 83.4 12.6 70.8 0.5 70.3 1.59% For the Three Months Ended, 14.36 24.21 3.72 48.60 $1.19 21.45 0.32 26.9% 7.75% 13.23 1.82 0.01 0.34 $144.1 0.0 25.0 93.7 75.4 11.3 64.1 0.5 63.6 1.42% 12.21 19.82 3.58 51.72 $1.07 22.93 0.32 29.9% First Merchants Corporation Helping you prosper 7.99% 13.48 1.80 0.06 0.43 $137.9 0.0 26.3 92.6 71.6 10.7 60.9 0.5 60.4 1.34% 11.29 18.04 3.39 52.21 $1.02 23.34 0.34 33.3% 7.69% 13.66 1.67 0.66 0.33 $133.4 2.0 27.8 93.8 65.4 9.0 56.4 0.5 55.9 1.24% 10.38 16.54 3.29 53.91 12/31/23 $0.94 22.43 0.34 36.2% 8.44% 13.67% 1.64 0.10 0.32 $130.1 1.5 26.4 108.1 46.9 4.4 42.5 0.5 42.0 0.92% 7.89 12.75 3.16 63.26 $0.71 25.06 0.34 47.9% Variance % Variance Linked Linked QTR- Quarter Annualized $312.8 202.6 97.6 174.9 155.1 0.75% 0.01 -0.03 -0.56 -0.01 ($3.3) (0.5) (1.4) 14.3 (18.5) (4.6) (13.9) 0.0 (13.9) -0.32% -2.49 -3.79 -0.13 9.35 ($0.23) 2.63 0.00 11.7% 7.0% 6.6% 10.5% 4.8% 29.6% -2.5% -5.0% 15.2% -28.3% -51.1% -24.6% -24.9% ■ ■ ■ ■ M 4Q23 Highlights 63.26% Efficiency Ratio, 55.56% excluding non-core expenses¹ Net interest income, decreased $3.3 million due to higher funding cost and mix change which offset higher earning asset income Pre-Tax, Pre-Provision (PTPP) Earnings totaled $61.1 million PTPP ROA was 1.33% and PTPP ROE was 11.47%¹ TCE Ratio increased 0.75% to 8.44% due to earnings growth and recapture of AOCI Tangible Book Value per share totaled $25.06, an increase of $2.63 from prior quarter ¹See "Non-GAAP Financial Information" for reconciliation 8#9Year-to-Date Financial Results ($M except per share data) Balance Sheet & Asset Quality 1. Total Assets 2. Total Loans 3. Investments 4. Deposits 5. Total Equity 6. TCE Ratio 7. Total RBC Ratio 8. ALLL/ Loans 9. NCOS / Avg Loans 10. NPAS +90PD / Assets Summary Income Statement 11. Net Interest Income 12. Provision for Loan Losses 13. Noninterest Income 14. Noninterest Expense 15. Pre-tax Income 16. Provision for Taxes 17. Net Income 18. Preferred Stock Dividends 19. Net Income Available to Common Stockholders 20. ROAA 21. ROAE 22. ROTCE 23. Net Interest Margin 24. Efficiency Ratio Per Share 25. Earnings per Diluted Share 26. Tangible Book Value per Share 27. Dividend per Share 28. Dividend Payout Ratio 2021 For the Year Ended December 31, $15,453.1 9,253.0 4,524.4 12,732.6 1,912.6 9.01% 13.92 2.11 0.10 0.29 $410.7 0.0 109.3 279.2 240.8 35.3 205.5 0.0 205.5 1.39% 11.01 16.17 3.18 50.94 $3.81 25.21 1.13 29.7% 2022 First Merchants Corporation Helping you prosper $17,938.3 12,013.0 4,263.8 14,382.7 2,034.8 7.34% 13.08 1.86 0.02 0.28 $520.2 16.8 107.9 355.7 255.7 33.6 222.1 1.4 220.7 1.29% 11.19 18.12 3.41 53.20 $3.81 21.45 1.25 32.8% 2023 $18,309.5 12,505.0 3,811.4 14,821.5 2,247.7 8.44% 13.67% 1.64 0.21 0.32 $545.4 3.5 105.6 388.3 259.2 35.4 223.8 1.9 221.9 1.23% 10.43 16.76 3.35 55.17 $3.73 25.06 1.34 35.9% Variance YOY $371.2 492.0 (452.4) 438.7 212.9 1.10% 0.59 -0.22 0.19 0.04 $25.2 (13.3) (2.3) 32.6 3.5 1.8 1.7 0.5 1.2 -0.06% -0.76 -1.36 -0.06 1.97 ($0.08) 3.61 0.09 3.1% % Variance YOY 2.1% 4.1% -10.6% 3.1% 10.5% 4.8% ■ 0.6% ■ ■ -2.2% 9.2% 1.4% 5.4% 0.8% ■ ■ Year-to-Date Highlights 55.17% Efficiency Ratio, 53.31% excluding non-core expenses¹ Net interest income, increased $25.2 million or 4.8% over prior year Pre-Tax, Pre-Provision (PTPP) Earnings totaled $275.4 million PTPP ROA was 1.51% and PTPP ROE was 12.95%¹ TCE Ratio increased 1.10% to 8.44% over prior year Tangible Book Value per share totaled $25.06, an increase of $3.61 over prior year ¹See "Non-GAAP Financial Information" for reconciliation 9#10Investment Portfolio Highlights 4Q23 Investment Portfolio Composition Collateralized Mortgage Obligations 6% U.S. Agencies 12% Mortgage Backed Securities 25% Corporate Obligations $3.8B Total 1% Municipal Bonds 56% Highlights ▪ 4Q23 bond sales of $43 million / $395 million YTD ▪ Effective duration of 6.3 years ▪ Cash flow of $282 million in 2024 /~2.14% yield ▪ AA rated municipal bond portfolio ▪ ~54% of portfolio classified as Held-to-Maturity ▪ Allowance for Credit Losses for Investments of $245,000 First Merchants Corporation Helping you prosper Yield on Investments (%) / Total Investments ($B) 2.66% $4.3 4Q22 2.63% ▪ 4Q 2022 ▪ 1Q 2023 ▪ 2Q 2023 ▪ 3Q 2023 ▪ 4Q 2023 $4.1 1Q23 Investments ($B) 2.56% $3.9 2Q23 2.55% $3.7 $0.1 million gain $1.6 million loss $1.4 million loss $1.7 million loss $2.3 million loss 3Q23 Yield on Investments (%) Realized Gains/Losses 2.56% Investment Portfolio Gains / Losses Unrealized Losses ▪ Net unrealized AFS Loss of $219.7 million ($382.8 M prior Q) ▪ Net unrealized HTM Loss of $314.2 million ($472.6 M prior Q) $3.8 4Q23 10#11Loan Portfolio Highlights Commercial Real Estate Non-Owner Occupied Commercial Real Estate Owner-Occupied 9.3% 5.58% $12.0 19.2% 4Q22 4Q23 Loan Composition 6.00% $12.3 1Q23 Construction Land & Land Development 7.7% $12.5B Total Commercial & Industrial 29.4% Home Equity 4.9% Other Consumer 1.4% Yield on Loans (%) / Total Loans ($B) 6.34% $12.3 2Q23 Total Loans ($B) Agricultural Land & Production 2.1% Public Finance/Other Commercial 7.6% 6.58% $12.3 3Q23 Residential Mortgage 18.4% Yield on Loans (%) First Merchants Corporation Helping you prosper 6.71% $12.5 4Q23 ■ Portfolio composition is ~75% Commercial oriented ▪ Total loan yield increased to 6.71% ▪ New/renewed loan yields averaged 8.01% for the quarter compared to 7.88% in 3Q23 Highlights Other Variable Rates 10% Prime-Based 12% 4Q23 Portfolio by Yield Type Fixed Rate 34% Total loan rate mix as of 4Q23 $8.3 billion variable rate $4.2 billion fixed rate SOFR-Based 44% ● · 11#12Allowance for Credit Losses - Loans 4Q23 Allowance for Credit Losses - Loans 1.86% $223.3 4Q22 1.82% $223.1 1Q23 I Allowance 1.80% $221.1 2Q23 $195,397 ACL - Loans 12/31/2021 1.67% $205.8 3Q23 Allowance to Loans $16,599 Level One - PCD Credit Mark 1.64% $204.9 First Merchants Corporation Helping you prosper $2,674 4Q23 ■ Highlights $1.5 million Q4 provision expense ■ Increase ■ ■ $3.5 million YTD provision expense ▪ $7.3 million provision exp. recorded for ACL - Loans I $3.8 million reserve reduction for unfunded commitments ▪ The reserve for unfunded commitments totals $19.5 million and is recorded in Other Liabilities ▪ The remaining fair value accretion on acquired loans is $23.2 million inclusive of credit and interest rate marks Change in ACL - Loans $13,955 $223,277 Net Charge- Provision Exp. ACL - Loans offs 2022 2022¹ 12/31/2022 Decrease $2.3 million provision exp. recorded for ACL - Loans $0.8 million reserve reduction for unfunded commitments $25,643 $7,300 $204,934 Net Charge- Provision Exp. ACL - Loans offs YTD 2023 12/31/2023 ¹Reflects $14 million for CECL Day 1 non-PCD loans. Total provision expense for 2022 of $16.8 million also includes $2.8 million for Level One's unfunded commitments. 12#13Deposit Portfolio Highlights 4Q23 Deposit Composition Certificates & Time Deposits < $100k 6% Certificates & Time Deposits > $100k 9% Savings Deposits 30% Brokered Certificates of 1 Deposits 1% $14.8B Total 0.92% $14.4 Demand Deposits 54% 4Q22 1.41% $14.7 1Q23 Total Deposits ($B) Cost of Total Deposits (%) / Total Deposits ($B) First Merchants Corporation Helping you prosper 1.99% $14.6 ■ 2Q23 ■ ■ ■ ■ Strong core deposit base 90% core deposits² 17% noninterest bearing 39% yield 5 bps or less Total deposit costs increased to 2.58% 56% cumulative interest-bearing deposit beta, 51% prior quarter Insured 72.1% / Uninsured 27.9% Average deposit account balance of $34,000 ● 2.32% Highlights $14.6 3Q23 Cost of Total Deposits (%) 2.58% $14.8 4Q23 ¹Total brokered deposits of $629 million, which includes brokered CDs of $80 million ²Defined as total deposits less time deposits > $100k 13#14Net Interest Margin 1. Net Interest Income - FTE ($millions) 2. Fair Value Accretion 3. PPP Loan Income -1 4. Adjusted Net Interest Income - FTE¹ 5. Tax Equivalent Yield on Earning Assets 6. Interest Expense/Average Earning Assets 7. Net Interest Margin 8. Fair Value Accretion Effect 9. Impact of PPP Loans 10. Adjusted Net Interest Margin¹ ¹Adjusted for Fair Value Accretion and PPP Loan Income 3.72% $155.3 4Q22 3.58% $150.4 1Q23 $ $ $ 4Q22 First Merchants Corporation Helping you prosper 155.3 $ 2.7 $ 0.1 $ $ 152.5 4.73% 1.01% 3.72% 0.07% 0.00% 3.65% 3.39% $143.7 2Q23 Net Interest Income - FTE ($millions) 1Q23 150.4 $ 2.4 $ $ 148.0 $ 5.06% 1.48% 3.58% 0.06% 0.00% 3.52% 2Q23 143.7 $ 2.0 $ $ 141.7 $ 5.36% 1.97% 3.39% 0.05% 0.00% 3.34% 3.29% $139.3 3Q23 Net Interest Margin 3Q23 139.3 $ 2.0 137.3 5.55% 2.26% 3.29% 0.05% 0.00% 3.24% es es es 3.16% $135.9 4Q23 1 1 T L 4Q23 135.9 1.7 134.2 5.64% 2.48% 3.16% 0.04% 0.00% 3.12% 1 14#15Noninterest Income Highlights 4Q23 Noninterest Income Detail ($M) Service Charges $7.7 25% Gain on Sale of Loans $4.1 13% Card Payment Fees $4.4 14% $26.4M Total Wealth Management $8.2 26% Gain (Loss) on Sale of Securities Other $0.2 1% ($0.2) -1% Other Customer Fees ($2.3) -7% Derivative Hedge Fees $1.1 3% BOLI $3.2 10% Highlights ▪ Customer-related fees totaling $25.7 million for 4Q23, decreased $0.8 million from 3Q23 driven primarily by lower gains on the sales of mortgage loans First Merchants Corporation Helping you prosper Non-customer related fees include a $1.5 million BOLI gain, losses of $2.3 million on sale of $43 million of available-for-sale securities, and $1.0 million write-down of CRA investments Fee Income / Revenue 13.4% $24.1M $2.9 $4.5 $7.1 $2.1 $7.5 Noninterest Income Trends ($M) 4Q22 14.2% $25.0M $2.1 Wealth Management $5.2 $7.4 $2.4 $7.9 1Q23 Gain on Sale of Loans 15.5% $26.3M $3.0 $4.5 $7.8 $3.6 $7.4 2Q23 Service Charges 16.6% $27.8M $2.2 $4.7 $8.0 $5.5 $7.4 3Q23 ■Card Payment Fees 16.3% $26.4M $2.0 $4.4 $7.7 $4.1 $8.2 4Q23 Other 15#16Noninterest Expense Highlights 4Q23 Noninterest Expense Detail Outside Data Processing $5.9 6% Premises & Equipment $15.2 14% $108.1M Total Salary & Benefits $60.9 56% Professional & Other Outside Services $4.0 4% FDIC Expense $7.6 7% Other $9.7 9% Intangible Asset Amortization $2.2 2% Marketing $2.6 2% Highlights ■ Increase in Q4 driven by one-time charges consisting of $4.3 million from the FDIC special assessment, $6.3 million from early retirement and severance costs, and $2.1 million from a lease termination. First Merchants Corporation Helping you prosper Efficiency Ratio 48.60% $89.7M $19.0 $5.6 $12.8 $52.3 Noninterest Expense Trends ($M) 4Q22 Salary & Benefits 51.72% $93.7M $16.7 $6.1 $13.4 $57.5 1Q23 52.21% ■ Premises & Equipment $92.6M $18.3 $6.6 $12.9 $54.8 2Q23 53.91% $93.9M $19.2 $6.6 $12.5 $55.6 3Q23 Outside Data Processing 63.26% 55.56%¹ $108.1M $26.1 $5.9 $15.2 $60.9 4Q23 Other 14Q23 Efficiency Ratio excluding non-core expenses, see "Non-GAAP Financial Information" for reconciliation 16#17Capital Ratios 7.34% 4Q22 10.65% 4Q22 Tangible Common Equity Ratio 7.75% 1Q23 10.82% TCE Ratio 1Q23 7.99% ICET 1 Ratio 2Q23 Common Equity Tier 1 Ratio 11.07% 7.69% 2Q23 3Q23 Target TCE (8.00%) 11.26% 3Q23 Target CET1 Ratio (10.00%) 8.44% 4Q23 11.35% First Merchants Corporation Helping you prosper 4Q23 ▪ TCE Ratio including marks on held-to-maturity securities portfolio is 7.13% CET1 including net unrealized loss in AOCI on available-for-sale securities is 10.30% 13.08% 4Q22 Highlights Total Risk-Based Capital Ratio 13.23% 1Q23 TRBC Ratio 13.48% 2Q23 13.66% 3Q23 Target TRBC Ratio (12.50%) 13.67% 4Q23 17#18Loan Portfolio 1.C&I - Regional Banking 2.C&I - Sponsor Finance 3.CRE Owner Occupied Loan Portfolio Trends ($M) 4.Construction/Land/Land Dev. 5.CRE Non-Owner Occupied 6.Agricultural 7.Public Finance/Other Commercial 8.Total Commercial Loans 9. Residential Mortgage 10. Home Equity 11.Other Consumer 12. Total Resi Mortgage & Consumer 13.Total Loans 4Q22 1Q23 2Q23 3Q23 4Q23 $ 2,827 $ 2,831 $ 2,733 $ 2,662 $ 2,876 612 674 798 829 795 1,244 1,242 961 1,180 950 1,154 1,162 1,022 836 958 2,407 2,375 2,380 2,360 2,401 242 220 230 234 263 933 959 964 967 956 9,262 9,235 9,228 9,411 9,101 2,103 2,195 2,276 2,286 2,304 631 621 614 609 618 178 173 173 179 172 2,912 2,989 3,063 3,074 3,094 $ 12,013 $12,251 $ 12,298 $ 12,302 $ 12,505 First Merchants Corporation Helping you prosper 4Q23 Highlights C&I- Regional Banking up $214 million ▪ CRE NOO (Investment) up $41 million ■ Year End 2023 Highlights Loan growth of $608.6 million or 5.1% ¹ ▪ Balanced commercial loan growth - $426 million ¹ C&I - Regional Banking - $165 million¹ C&I - Sponsor Finance - $183 million Constr/Land/Land Dev. - $122 million ▪ Total Resi Mtg & Cons. - $182 million IL 6.5% OH 14.0% ● ● ¹Adjusted for the sale of non-relationship, term loan B loans of $116 million during the 2nd quarter Geography Other 14.6% MI 20.4% 85.4% of borrowers within four state IN 44.5% Midwest geography 18#19Loan Portfolio Insights Manufacturing Finance & Insurance Other Admin Services Wholesale Trade Retail Trade ■ Professional Service Construction ● C&I 6.4% 5.5% 10.1% 9.8% 8.8% 7.9% 19.9% Top Industries % of C&I loans C&I Includes commercial and industrial, sponsor and owner- occupied real estate loans Transp./Warehouse Specialty Trade Investment CRE 4.6% 4.0% 3.6% ▪ Line utilization 4Q23 41.3% from 40.9% 3Q23 $740 million Shared National Credits: Relationship Strategy: Access to management, additional revenue opportunities Top borrower industries include chemicals, heavy road construction, real estate, manufacturing, outdoor advertising $59.7 million of SBA guaranteed loans Commercial Home Equity / Other Consumer > 96% of $681 million in consumer loans had a credit score exceeding 669 at origination ¹ First Merchants Corporation Helping you prosper C&I- Sponsor Finance $795 million to 86 companies, 53 active sponsors, top 5 borrower industries include manufacturing, packaging services, and comm transportation equipment ▪ Senior Debt/Adj. EBITDA < 3.0X ~ 74% ▪ Total Debt/Adj. EBITDA < 4.0X ~ 78% ■ FCCR > 1.50X ~ 65% ▪ ~4.0% Classified (as % of portfolio) Mortgage & Consumer Construction Finance ▪ $175 million Resi Real Estate Construction ■ $782 million CRE Construction & Land ■ ($M) Multi-Family Industrial Self Storage Office-Medical Office-General % CRE Balance Commit. Constr/Land $453 $772 $93 $110 $66 $70 $27 $27 $25 $8 57.9% 12.0% 8.4% 3.1% 1.1% Residential Mortgage $257 million residential mortgage secured, related to commercial loan relationships ▪ $2.0 billion residential mortgage loans > 90% of $1.8 billion in residential portfolio loans had a credit score at origination exceeding 669² ¹Excludes ~14% of loans where origination data is unavailable 2Excludes ~12% of residential loans where origination data is unavailable 19#20Loan Portfolio Insights (continued) Balance: Commitment: # of loans: % of Total Loans: Average Loan Balance: Top 10 - Avg. Loan Com: Office % Total Loans Total Loans $12.5 Billion Commercial Real Estate (Non-Owner Occupied) ($M) Warehouse / Storage Multi- Family $724.0 $755.3 478 5.8% $1.5 $18.8 Non-Office CRE (NOO), 17.2% Industrial Retail $384.3 $398.9 492 3.1% $0.8 $8.8 Office CRE 2.0% $348.4 $353.6 311 General Office Medical Mixed Government Other 2.8% $1.1 $8.7 Multi Tenant Single Tenant Michigan Indiana Ohio Oklahoma Illinois Other First Merchants Corporation Helping you prosper Office Office (Non-Owner Occupied) ($M) Office Type $253.4 $258.1 217 2.0% Office Tenant Classification $1.2 $10.7 Office Geographic $122.4 $71.4 $19.0 $20.9 $19.7 $151.8 $101.6 $93.4 $65.6 $28.6 $25.0 $23.8 $17.0 Hotel $241.8 $148.7 $255.3 98 1.9% $2.5 $14.4 Total CRE (NOO) $300.2 $2,400.8 $149.2 $323.4 $2,493.8 32 119 1.2% 2.4% $4.6 $2.5 $11.7 $18.0 Other Office Maturities Over 5 yrs. 44.4% <= 1 7.0% Office Maturities $253.4 Million 1747 19.2% $1.4 $23.9 1-3 yrs. 23.7% 3-5 yrs. 24.9% Top 10 loans are 41% of total office with WALTV of ~59% at origination Largest NOO Office $25 million, medical office, 39% LTV ▪ 2nd largest $19 million, 40% owner occupied 20#21Asset Quality Asset Quality Trends ($M) 1. Non-Accrual Loans 2. Other Real Estate 3. 90PD Loans 4. Renegotiated Loans 5. NPAS + 90PD 6. NPAS + 90PD/Loans and ORE 7. Classified Loans 8. Classified Loans/Loans 9. Net Charge-offs (QTD) 10. QTD NCO/Avg. Loans (Annualized) 4Q22 $ 42.3 6.5 1.7 0.2 1Q23 2Q23 3Q23 4Q23 $ 46.6 $ 69.2 $ 53.1 $ 53.6 7.8 7.0 7.7 0.4 6.5 0.1 4.8 First Merchants Corporation Helping you prosper 0.2 $ 50.7 $ 61.4 $ 77.3 $59.7 $ 58.6 0.42% 0.50% 0.63% 0.49% 0.47% $ 215.2 $ 250.5 $ 257.0 $ 232.2 $ 242.8 1.79% 2.04% 2.09% 1.89% 1.94% $ 3.4 $ 0.2 $ 1.9 $ 20.4 $ 3.1 0.12% 0.01% 0.06% 0.66% 0.10% ▪ Stable credit metrics ● Highlights ● NPAS + 90 day past due 47 basis points of Loans and ORE NPAS + 90 day past due declined $1.1 million or 2 bps to 47 basis points of loans and ORE ▪ Consistent portfolio performance despite higher rates Classified Loans mostly unchanged from 1.89% to 1.94% ▪ Modest charge-off Levels Q4 Net Charge-offs of $3.1 million, 10 basis points of average loans (annualized) • 2023 Net Charge-offs of $25.6 million, 21 basis points of average loans 21#22Nonperforming Assets Nonperforming Assets Roll Forward ($M) 1. Beginning Balance NPAs +90PD Non-Accrual 2. Add: New Non-Accruals 3. Less: To Accrual or Payoff 4. Less: To OREO 5. Less: Charge-offs 6. Non-Accrual Loans Change Other Real Estate Owned (ORE) 7. Add: New ORE Properties 8. Less: ORE Sold 9. Less: ORE Losses (write-downs) 10. ORE Change 11. 90PD Change 12. Renegotiated Loans Change 13. NPAS +90PD Change 14. Ending Balance NPAS + 90PD 1Q23 2Q23 3Q23 4Q23 2023 $50.7 $61.4 $77.3 $59.7 $50.7 15.4 33.2 7.5 10.3 66.4 (8.6) (8.3) (2.5) (6.1) (25.5) (0.2) (1.4) (1.6) (1.1) (2.3) (20.9) (3.7)| (28.0) 4.3 22.6 (16.1) 0.5 11.3 1.4 0.2 (0.1) (0.1) (1.4) 1.3 (0.6) (1.1) (0.1) (1.2) (1.7) (6.6) (0.3) 0.1 0.0 1.6 (2.2) (1.1) (1.7) First Merchants Corporation Helping you prosper 5.3 (0.2) 10.7 15.9 (17.6) (1.1) $61.4 $77.3 $59.7 $58.6 $58.6 (1.5) (0.2) 7.9 Highlights 4Q23 Nonperforming Asset Migration: ■ Improvement for the quarter with $1.1 million reduction in NPAs and 90 day past due overall Largest new nonaccrual only $0.7 million • $0.6 million reduction in ORE from property sales ● 2023 YTD Nonperforming Asset Migration: ▪ Stable migration Consistent portfolio performance 22#23Track Record of Shareholder Value 10-Year Total Return (2013-2023) $12.12 215% FRME CAGR 2013-2023: 7.5% Adjusted CAGR¹ 8.7% 2013 Tangible Book Value per Share $13.27 $14.38 $15.83 $16.78 2014 2015 $19.24 191% S&P BMI US Bank TBVPS $21.24 $22.64 $12.17 $13.65 $14.68 $15.85 $16.96 $19.12 $21.94 $24.27 $25.21 $21.45 $25.06 $27.98 $25.42 $24.09 2016 2017 2018 2019 2020 2021 2022 2023 TBVPS Without AFS OCI ¹ ¹Tangible book value per share excluding unrealized gain/loss in available for sale securities. First Merchants Corporation Helping you prosper CAGR 2013-2023: 10.2% $1.41 $1.65 $1.72 $0.18 Earnings per Share CAGR 2013-2023: 22.2% $0.29 $0.41 $1.98 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Dividends per Share 12.69% 12.94% 12.47% $2.12 $0.54 $0.69 $3.22 $3.19 13.26% 13.29% || $0.84 $1.00 18.77% $2.74 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Return on Tangible Common Equity 15.81% $1.04 $3.81 $3.81 $3.73 12.21% $1.13 $1.25 $1.34 16.17% 18.12% 16.76% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 23#24History of Organic and Whole Bank Acquisition Growth Total Assets ($B) Growth Through Acquisition Experienced Acquirer ✓ Expanded in Current High-Growth Markets Extended into Additional High-Growth Markets Added to Franchise with Stable Deposit Gathering Markets 2000 > Decatur Bank & Trust $5.4 2013 $5.8 2014 2002 > Lafayette Bank & Trust $6.8 2015 2001 2003 > Frances > Commerce Slocum Bank National Bank & Trust $7.2 2016 Asset CAGR: 12.9% $9.4 2017 First Merchants Corporation Helping you prosper $9.9 2018 2008 ) Lincoln Bank $12.5 2019 $14.1 2020 $15.5 2021 2013 > Citizens Financial Bank 2012 > Shelby County Bank $17.9 2022 $18.3 2014 > Community Bank 2023 2015 > Cooper State Bank ) Ameriana Bank 2019 > Monroe Bank & Trust 2017 > Arlington Bank > IAB Financial Bank 2022 Level One (Closed April 1, 2022) 24#25Vision for the Future Our Vision: Our Mission: Our Team: Strategic Imperatives: To enhance the financial wellness of the diverse communities we serve. To be the most attentive, knowledgeable, and high-performing bank for our clients, teammates, and shareholders. We are a collection of dynamic colleagues with diverse experiences and perspectives who share a passion for positively impacting lives. We are genuinely committed to attracting and engaging teammates of diverse backgrounds. We believe in the power of inclusion and belonging. ■ ■ ■ ■ Drive engagement through inclusivity, teamwork, performance management, career development, rewards, and work-life balance ■ Produce organic growth across all lines of business and markets through focused, data- driven, industry-leading client acquisition, expansion, and retention activities Continued investment in the digitization of our delivery channels to simplify the client experience Maintain top-quartile financial results supported by industry-leading governance, risk, and compliance practices to ensure long-term sustainability Continue to leverage our core competency in acquisitions to enhance growth, efficiency, and high performance Cultivate a high-quality shareholder base that values our stakeholder-centric business model First Merchants Corporation Helping you prosper 25#26APPENDIX First Merchants Corporation Helping you prosper 26#27Non-GAAP ADJUSTED NET INCOME AND DILUTED EARNINGS PER COMMON SHARE (Dollars in Thousands, Except Per Share Amounts) Net Income Available to Common Stockholders - GAAP Adjustments: PPP loan income Acquisition-related expenses Acquisition-related provision expense Non-core expenses ¹ Tax on adjustments Adjusted Net Income Available to Common Stockholders - NON-GAAP Average Diluted Common Shares Outstanding Diluted Earnings Per Common Share - GAAP Adjustments: PPP loan income Acquisition-related expenses Acquisition-related provision expense Non-core expenses ¹ Tax on adjustments Adjusted Diluted Earnings Per Common Share - NON-GAAP $ $ $ 4Q22 $ 70,292 $ 63,610 $ 60,393 $ 55,898 $ First Merchants Corporation Helping you prosper (109) 413 (75) 70,521 $ 59,384 1.19 $ (0.01) 0.01 1Q23 1.19 $ (25) 6 63,591 $ 59,441 1.07 $ 2Q23 1.07 $ (9) 2 60,386 $ 59,448 1.02 $ 3Q23 1.02 $ (8) 59,503 0.94 $ 4Q23 12,682 2 (3,088) 55,892 $ 51,597 0.94 $ 42,010 (7) 59,556 0.71 $ $ 2021 $ 205,531 $ 220,683 $ 221,911 0.21 (0.05) 0.87 $ (30,900) 53,984 7,577 (7,376) 182,208 $ 243,386 $ 3.81 (0.57) 2022 $ 0.14 3.38 $ (3,207) 16,531 16,755 57,950 3.81 (0.06) 0.28 0.30 $ 2023 (0.13) 4.20 $ (49) 12,682 (3,078) 231,466 59,489 3.73 0.21 (0.05) 3.89 ¹Non-core expenses include one-time charges consisting of $4.3 million from the FDIC special assessment, $6.3 million from early retirement and severance costs, and $2.1 million from a lease termination. 27#28Non-GAAP PRE-TAX, PRE-PROVISION ("PTPP") EARNINGS, AS ADJUSTED (Dollars in Thousands, Except Per Share Amounts) Net Interest Income (GAAP) Other Income (GAAP) Total Revenue Less: Other Expenses (GAAP) Add: Acquisition-Related Expenses (GAAP) Ad Νοι ore Expenses¹ (GAAP) Pre-Tax, Pre-Provision Earnings (non-GAAP) Average Assets (GAAP) Average Equity (GAAP) Average Diluted Common Shares PTPP/Average Assets (PTPP ROA) PTPP/Average Equity (PTPP ROE) PTPP/Average Diluted Common Shares (Dollars in Thousands, Except Per Share Amounts) Net Interest Income (GAAP) Other Income (GAAP) Total Revenue Less: Other Expenses (GAAP) Add: Acquisition-Related Expenses (GAAP) Add: Non-core Expenses ¹ (GAAP) Pre-Tax, Pre-Provision Earnings (non-GAAP) Average Assets (GAAP) Average Equity (GAAP) Average Diluted Common Shares PTPP/Average Assets (PTPP ROA) PTPP/Average Equity (PTPP ROE) PTPP/Average Diluted Common Shares $ $ 148,956 $ 144,119 $ 24,151 173,107 (89,699) 24,997 169,116 (93,720) 413 $ $ $ 4Q22 $ First Merchants Corporation Helping you prosper 1.88% 17.12% 1.41 $ $ 17,834,468 $18,022,195 $18,170,649 $18,152,239 $18,397,200 $ 1,958,041 $ 2,083,125 $ 2,139,877 $ 2,154,232 $2,130,993 59,384 59,441 59,448 59,503 59,556 2021 1Q23 83,821 $ 75,396 $ 71,561 $ 67,371 $ 410,680 $ 109,323 520,003 (279,213) 528 1.63% 12.93% 1.67% 14.48% 1.27 $ 4.47 $ 2022 2Q23 520,203 $ 107,941 628,144 (355,716) 16,531 137,835 $ 133,383 $ 26,319 27,842 164,154 161,225 (92,593) (93,854) 1.68% 14.65% 4.99 $ 1.58% 13.38% $14,830,397 $17,220,002 $18,186,507 $ 1,866,632 $ 1,972,445 $ 2,127,262 53,984 57,950 59,489 1.20 $ 12,682 241,318 $ 288,959 $ 275,414 2023 545,401 105,601 651,002 (388,270) 3Q23 1.51% 12.95% 4.63 1.48% 12.51% 4Q23 1.13 $ 130,064 26,443 156,507 (108,103) 12,682 61,086 1.33% 11.47% 1.03 ¹Non-core expenses include one-time charges consisting of $4.3 million from the FDIC special assessment, $6.3 million from early retirement and severance costs, and $2.1 million from a lease termination. 28#29Non-GAAP EFFICIENCY RATIO (dollars in thousands): EFFICIENCY RATIO (dollars in thousands): Non Interest Expense (GAAP) Less: Intangible Asset Amortization Less: OREO and Foreclosure Expenses Adjusted Non Interest Expense (non-GAAP) Net Interest Income (GAAP) Plus: Fully Taxable Equivalent Adjustment Net Interest Income on a Fully Taxable Equivalent Basis (non-GAAP) Non Interest Income (GAAP) Less: Investment Securities Gains (Losses) Adjusted Non Interest Income (non-GAAP) Adjusted Revenue (non-GAAP) Efficiency Ratio (non-GAAP) Adjusted Non Interest Expense (non-GAAP) Acquisition-related expenses Non-core expenses ¹ 1 Adjusted Non Interest Expense Excluding Non-Core Expenses (non-GAAP) Efficiency Ratio Excluding Non-Core Expenses (non-GAAP) 2021 $ 279,213 $ (5,747) (992) First Merchants Corporation Helping you prosper 272,474 410,680 20,586 431,266 109,323 (5,674) 103,649 534,915 50.94% 272,474 272,474 50.94% 4Q22 89,699 $ (2,303) (197) 87,199 148,956 6,370 155,326 24,150 (57) 24,093 179,419 48.60% 87,199 (413) 86,786 48.37% 2022 355,715 (8,275) (823) 346,617 520,203 24,590 544,793 107,941 (1,194) 106,747 651,540 53.20% 346,617 (16,531) 330,086 50.66% $ 1Q23 93,720 $ (2,197) 18 91,541 144,119 6,321 150,440 24,997 1,571 26,568 177,008 51.72% 91,541 91,541 51.72% 2023 92,593 $ (2,182) (916) 89,495 137,835 5,858 143,693 26,319 1,392 27,711 171,404 52.21% 89,495 89,495 52.21% 3Q23 93,854 $ (2,182) (677) 90,995 133,383 5,911 139,294 27,842 1,650 29,492 168,786 53.91% 90,995 90,995 53.91% 4Q23 108,103 $ (2,182) (1,743) 104,178 130,063 5,853 135,916 26,444 2,317 28,761 164,677 63.26% 104,178 (12,682) 91,496 55.56% 2023 388,270 (8,743) (3,318) 376,209 545,400 23,943 569,343 105,602 6,930 112,532 681,875 55.17% 376,209 (12,682) 363,527 53.31% ¹Non-core expenses include one-time charges consisting of $4.3 million from the FDIC special assessment, $6.3 million from early retirement and severance costs, and $2.1 million from a lease termination. 29#30Non-GAAP CAPITAL RATIOS (dollars in thousands): Total Risk-Based Capital Ratio (dollars in thousands) Total Stockholders' Equity (GAAP) Adjust for Accumulated Other Comprehensive (Income) Loss ¹ Less: Preferred Stock Add: Qualifying Capital Securities Less: Tier 1 Capital Deductions Less: Disallowed Goodwill and Intangible Assets Less: Disallowed Deferred Tax Assets Add: Modified CECL Transition Amount Total Tier 1 Capital (Regulatory) Qualifying Subordinated Debentures Allowance for Loan Losses includible in Tier 2 Capital Total Risk-Based Capital (Regulatory) Net Risk-Weighted Assets (Regulatory) Total Risk-Based Capital Ratio (Regulatory) Common Equity Tier 1 Capital Ratio Total Tier 1 Capital (Regulatory) Less: Qualified Capital Securities Add: Additional Tier 1 Capital Deductions Common Equity Tier 1 Capital (Regulatory) Net Risk-Weighted Assets (Regulatory) Common Equity Tier 1 Capital Ratio (Regulatory) $ $ $ 4Q21 $ 1,912,571 (55,113) (125) 46,606 $ 11,369,907 $ 13.92% (564,002) (239) 34,542 1,374,240 $ 65,000 143,241 1,582,481 $ 1,374,240 $ (46,606) 1,327,634 $ 11,369,907 $ 11.68% 4Q22 First Merchants Corporation Helping you prosper 2,034,770 239,151 (25,125) 25,000 (738,206) (337) 23,028 1,558,281 $ 143,103 180,870 1,882,254 $ 14,392,671 $ 13.08% 1,558,281 (25,000) $ 1,533,281 $ 1Q23 2,122,448 198,914 (25,125) 25,000 (736,429) (351) 11,514 1,595,971 $ 143,118 182,308 1,921,397 $ 14,524,959 $ 13.23% 1,595,971 $ (25,000) 1,570,971 $ 14,392,671 $ 14,524,959 $ 10.65% 10.82% 2Q23 2,145,565 217,964 (25,125) 25,000 (734,666) (258) 11,514 1,639,994 $ 143,132 183,106 1,966,232 $ 14,590,561 $ 13.48% 1,639,994 $ (25,000) 1,614,994 $ 14,590,561 $ 11.07% 3Q23 2,092,644 307,270 (25,125) 25,000 (732,903) (192) 11,514 1,678,208 $ 143,147 184,046 2,005,401 $ 14,683,329 $ 13.66% 1,678,208 $ (25,000) 1,653,208 $ 14,683,329 $ 11.26% 4Q23 2,247,713 175,970 (25,125) 25,000 (731,315) (131) 11,514 1,703,626 132,174 185,324 2,021,124 14,787,474 13.67% 1,703,626 (25,000) 1,678,626 14,787,474 11.35% ¹ Includes net unrealized gains or losses on securities available for sale, net gains or losses on cash flow hedges, and amounts resulting from the application of the applicable accounting guidance for defined benefit and other postretirement plans. 30#31Non-GAAP TANGIBLE COMMON EQUITY RATIO (dollars in thousands): Tangible Common Equity Ratio (dollars in thousands) Total Stockholders' Equity (GAAP) Less: Preferred Stock Less: Intangible Assets Tangible Common Equity (non-GAAP) Total Assets (GAAP) Less: Intangible Assets Tangible Assets (non-GAAP) Tangible Common Equity Ratio (non-GAAP) TANGIBLE COMMON EQUITY PER SHARE (dollars in thousands): Tangible Common Equity Per Share Total Stockholders' Equity (GAAP) Less: Preferred Stock Less: Intangible Assets Tax Benefit Tangible Common Equity, Net of Tax (non-GAAP) Common Shares Outstanding Tangible Common Equity per Share (non-GAAP) Tangible Common Equity Per Share Total Stockholders' Equity (GAAP) Less: Preferred Stock Less: Intangible Assets Tax Benefit Tangible Common Equity, Net of Tax (non-GAAP) Common Shares Outstanding Tangible Common Equity per Share (non-GAAP) $ $ 4Q21 4Q13 9.01% 4Q20 $ 1,912,571 $ 2,034,770 $ 2,122,448 $ 2,145,565 $ 2,092,644 $2,247,713 (25,125) (125) (570,860) (25,125) (25,125) (25,125) (747,844) (745,647) (743,465) (25,125) (739,101) (741,283) $ 1,341,586 $ 1,261,801 $ 1,351,676 $ 1,376,975 $ 1,326,236 $ 1,483,487 $ 15,453,149 $17,938,306 $18,178,908 $17,968,412 $17,996,648 $18,309,479 (570,860) (747,844) (745,647) (743,465) (741,283) (739,101) $14,882,289 $17,190,462 $17,433,261 $17,224,947 $17,255,365 $17,570,378 35,921,761 $ 12.17 $ 4Q22 4Q14 First Merchants Corporation Helping you prosper 7.34% 4Q21 1Q23 4Q15 7.75% 4Q22 2Q23 4Q16 7.99% 1Q23 3Q23 4Q17 634,923 $ 726,827 $ 850,509 $ 901,657 $1,303,463 $1,408,260 $1,786,437 (125) (125) (125) (125) (125) (125) (125) (202,767) (218,755) (259,764) (258,866) (476,503) (469,784) 4,973 6,085 6,278 5,930 6,788 5,017 437,004 $ 514,032 $596,898 $ 648,596 $ 833,623 $ 943,368 $1,214,688 (578,881) 7,257 7.69% 37,669,948 40,664,258 40,912,697 49,158,238 49,349,800 55,368,482 13.65 $ 14.68 $ 15.85 $ 16.96 $ 19.12 $ 21.94 2Q23 4Q23 4Q18 8.44% 3Q23 4Q19 4Q23 $1,875,645 $ 1,912,571 (125) (125) (572,893) (570,860) 5,989 4,875 $1,346,461 $ 1,308,616 53,922,359 53,410,411 59,170,583 59,257,051 59,297,148 59,398,022 59,424,122 $ 24.27 $ 25.21 $ 21.45 $ 22.93 $ 23.34 $ 22.43 $ 25.06 $2,034,770 $2,122,448 $2,145,565 $2,092,644 $2,247,713 (25,125) (25,125) (25,125) (25,125) (25,125) (747,844) (745,647) (743,465) (741,283) (739,101) 7,702 7,231 6,760 6,290 5,819 $1,269,503 $1,358,907 $1,383,735 $1,332,526 $1,489,306 31#32Non-GAAP RETURN ON TANGIBLE COMMON EQUITY (dollars in thousands): Return on Tangible Common Equity Total Average Stockholders' Equity (GAAP) Less: Average Preferred Stock Less: Average Intangible Assets, Net of Tax Average Tangible Common Equity, Net of Tax (non-GAAP) Net Income Available to Common Stockholders (GAAP) Plus: Intangible Asset Amortization, Net of Tax Tangible Net Income (non-GAAP) Return on Tangible Common Equity (non-GAAP) Return on Tangible Common Equity Total Average Stockholders' Equity (GAAP) Less: Average Preferred Stock Less: Average Intangible Assets, Net of Tax Average Tangible Common Equity, Net of Tax (non-GAAP) Net Income Available to Common Stockholders (GAAP) Plus: Intangible Asset Amortization, Net of Tax Tangible Net Income (non-GAAP) Return on Tangible Common Equity (non-GAAP) 2013 12.69% $ 42,150 $ 60,162 $ 65,384 892 1,395 1,720 $ 43,042 $ 61,557 $ 67,104 12.47% 2021 (567,512) $1,298,995 2014 $ 205,531 $ 4,540 $ 210,071 $ $ 675,295 $ 753,724 $ 884,664 $1,110,524 $1,343,861 $1,569,615 $1,825,135 (125) (125) (125) (125) (125) (125) $ 540,255 (47,537) (153,519) (199,354) $ 339,199 $ 475,816 (125) (215,281) (254,332) (360,005) (467,421) (499,622) (569,377) $ 538,318 $630,207 $ 750,394 $ 876,315 $1,069,868 $1,255,633 96,070 $ 159,139 $164,460 $ 148,600 3,670 5,307 4,736 4,730 99,740 $ 164,446 $ 169,196 $ 153,330 16.17% First Merchants Corporation Helping you prosper 12.94% 2015 4Q22 24.21% 2022 2016 18.12% $ 81,051 $ 2,542 $ 83,593 $ 13.26% 1Q23 2017 19.82% 13.29% 2Q23 2018 18.04% 18.77% $1,866,632 $1,958,041 $1,972,445 $2,083,125 $2,139,877 $2,154,232 $2,130,993 $2,127,262 (125) (25,125) (18,875) (25,125) (25,125) (25,125) (25,125) (25,125) (741,632) (699,803) (739,190) (737,489) (735,787) (734,007) (736,601) $1,191,284 $1,253,767 $1,318,810 $1,377,263 $1,393,320 $1,371,861 $1,365,536 70,292 $ 220,683 $ 63,610 $ 60,393 $ 55,898 $ 42,010 $ 221,911 1,819 6,537 1,734 1,724 1,724 1,724 6,906 72,111 $ 227,220 65,344 $ 62,117 $ 57,622 $ 43,734 $ 228,817 3Q23 2019 16.54% 15.81% 4Q23 2020 12.75% 12.21% 2023 16.76% 32