Welcome to the
First Merchants family!
Becoming Partners In
Community Banking
iAB Financial Bank Employee Packet
We’re growing!
Welcome iAB Financial Bank to the First Merchants Family!
February 17, 2017
Fellow iAB Financial Bank Employees:
We are excited to announce that iAB Financial Bank is planning to join First Merchants Bank, and would like to
personally introduce you to our banking family.
The boards of First Merchants Corporation and Independent Alliance Banks, Inc., have approved an agreement to
merge our two companies. Pending finalization, iAB will join the First Merchants team.
We believe you’ll find First Merchants to be a natural extension of iAB; we’re already neighbors. First Merchants
complements your footprint with long-standing locations and market presence in North Manchester, Wabash and
Decatur. Our companies share a commitment to personal service, long-term customer relationships, community
involvement and Midwestern values.
Founded in 1893 and headquartered in Muncie, Indiana, First Merchants Corporation is a $7.2 billion organization. We
operate as First Merchants Bank, Lafayette Bank & Trust, and First Merchants Private Wealth Advisors. As the largest
financial services holding company headquartered in Central Indiana, our “whole bank” delivery model creates a
competitive advantage. We deliver high levels of responsiveness and knowledge through all of our lines of business
while leveraging high-quality administration and expertise.
We’re convinced our planned partnership will prove to be mutually beneficial to our shareholders, communities, and
customers, as well as you, our team members. Looking forward, the combined strength of our companies will allow us
to offer a wider array of services, more access and a better overall banking experience.
As one company, we will also be better positioned to provide opportunities for talented team members like you. First
Merchants respects and values people as our competitive advantage, offering a comprehensive benefit package, family-
friendly work environment, and a variety of learning and development opportunities. Like iAB, we encourage volunteer
efforts with paid time off Community Days as part of our First Merchants Serves program.
We’re sure you have questions about First Merchants and what this news means to you and your customers, and hope
some of your questions will be answered in the enclosed materials or online at www.firstmerchants.com. We are still in
the early stages of the process, but will continue to share information and timelines for integration, name changes, and
platform changes as they become available. As we prepare to combine our banks, rest assured that we will remain true
to the principles both our companies were founded on: local decisions, customer focus, and community involvement.
We’re proud of our intent to continue our journey and commitment to community banking as new partners, and we look
forward to welcoming you to the family.
Sincerely,
Michael C. Rechin Michael C. Marhenke
First Merchants Bank iAB Financial Bank
President and CEO President and CEO
ADDITIONAL INFORMATION
Forward 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 the expected
timing and benefits of the proposed merger (the “Merger”) between First Merchants Corporation (“First Merchants”)
and Independent Alliance Banks, Inc., including future financial and operating results, cost savings, enhanced
revenues, and accretion/dilution to reported earnings that may be realized from the Merger, as well as other
statements of expectations regarding the Merger, and other statements of 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, whether with respect to the Merger or otherwise. 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: the risk that the businesses of First Merchants and
Independent Alliance Banks, Inc. will not be integrated successfully or such integration may be more difficult, time-
consuming or costly than expected; expected revenue synergies and cost savings from the Merger may not be fully
realized or realized within the expected time frame; revenues following the Merger may be lower than expected;
customer and employee relationships and business operations may be disrupted by the Merger; the ability to obtain
required governmental and shareholder approvals, and the ability to complete the Merger on the expected
timeframe; possible changes in economic and business conditions; the existence or exacerbation of general
geopolitical instability and uncertainty; 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, 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. Neither First Merchants nor Independent Alliance Banks, Inc. undertake any
obligation to update any forward-looking statement, whether written or oral, relating to the matters discussed in this
presentation or press release. In addition, First Merchants’ and Independent Alliance Banks, Inc.’s past results of
operations do not necessarily indicate either of their anticipated future results, whether the Merger is effectuated or
not.
iAB Financial Bank/First Merchants Bank Partnership
Employee Questions
Q: What happens to my benefits?
A: Nothing changes with the announcement. Continue to use your current insurance card(s) and process claims as
normal. When iAB Financial Bank employees transition over to First Merchants’ benefits, employees will participate in
benefit enrollment meetings and will have plenty of advance notice of all changes. After the legal close and on the date
that is selected as the “transition date”, all employees (full time and part time) will become eligible for First Merchants’
401k plan. Details will be forthcoming over the next several months explaining that transition process.
Q: What does “legal close” mean?
A: On the closing date, which we anticipate will be some time in the third quarter of 2017, iAB Financial Bank will
officially merge with and into First Merchants Bank.
Rev. 2017 Page 1
Health Insurance
Two High Deductible Health Plans
Preventive care is covered at 100%
Prescription Drug Coverage
Flexible Spending Accounts
Three options to elect
Healthcare FSA
Limited Healthcare FSA
Dependent Care FSA
Dental Insurance
Preventive services covered at 100% with no
deductible
Vision Insurance
Wellness Incentives
Two ways to save
#1 – Non-tobacco use
#2 – Annual Physical/Wellness Coaching
No deductible
One annual eye examination
Contact lenses or eyeglass lenses every 12
months and frames every 24 months
Additional Insurance Coverage
Two additional voluntary employee paid
insurance products are provided if the
employee elects to enroll
Accident insurance
Must be covered by a High Deductible
Health Plan
Account is portable
FIRST MERCHANTS BANK
EMPLOYEE BENEFITS SUMMARY
First Merchants benefits strategy is designed to attract, retain, and motivate the best talent by
providing highly valued healthcare, wellness, financial and work/life balance benefits. Our
benefits strategy is to meet the needs of our employees and their families differing needs and
lifestyles. All eligibility requirements stated in the benefits plans will utilize your hire date at iAB
as the vesting date.
KEEPING EMPLOYEES & FAMILIES HEALTHY
Eligibility: The following benefits are offered to all employees working 30 or more hours a week and are
effective on the 61st day of employment.
NOTE: Spouses with medical coverage through their employer are not eligible for health insurance,
however, may enroll in dental and vision coverage as long as the employee is enrolled in the coverage.
Health Savings Account Critical Illness Insurance
PROTECTING LIFE & INCOME
Accidental Death and Dismemberment
Accidental death benefit is provided by First
Merchants
Equal to two times annual base salary
(maximum of $200,000)
Voluntary Life
Available for self, spouse or dependent.
Group Term Life Insurance
Bank paid for full-time employees
Equal to two times annual base salary
(maximum benefit $200,000)
Dependent Group Term Life Insurance
Available for spouse and dependent children
If enrolled as a new employee, no evidence of
insurability is required.
Short-Term Disability
Full time employees eligible on the 61st day
of employment; part-time employees working
30 hours or more are eligible on 181st day of
employment
Two coverage options available
Long-Term Disability
Bank paid for full time employees
Benefit level is 60% of monthly base pay and
is offset by Social Security benefits
1.800.205.3464 | www.firstmerchants.com
Rev. 2017 Page 2
PREPARING FOR THE FUTURE
Retirement Income & Savings Plan 401(k)
All employees who are at least 18 years of
age are eligible to participate immediately
upon hire
Plan allows employees to save from 1% to
75% of compensation (pre-tax or after-tax
Roth)
Company match of 100% of the first 3% of
employee contribution; plus 50% of the next
3% of employee contribution
Employees vest 20% of the employer match
each year, with 100% vesting at 5 years.
Participants may request a loan from their
401(k) account
Employee Stock Purchase Plan
All employees are eligible to participate in the
Employee Stock Purchase Plan after 90 days
of service prior to a quarterly entry date
A maximum fair market value of $25,000 in
stock can be purchased with an after-tax
deduction during a calendar year
The purchase price each quarter will be 85%
of the average fair market value of the stock
during the quarter (15% purchase price
discount). The price cannot be less than 85%
of the lesser of the fair market value at the
beginning or end of the quarter
WORK LIFE BALANCE
Vacation
Vacation schedule for employees hired within a calendar year.
Date of
Employment
PT < 20
Eligible
After 3
Months
PT 20 – 24
Eligible
After 3
Months
PT 25 – 29
Eligible
After 3
Months
PT 30 – 34
Eligible
After 3
Months
Non-
Officers
Eligible
After 3
Months
Officers &
AVP
Eligible
immediately
VP &
Above
Eligible
immediately
Jan to March None 24 hours 29 hours 34 hours 40 hours 15 days 20 days
April to Jun None 18 hours 22 hours 26 hours 30 hours 11 days 15 days
July to Aug None 12 hours 15 hours 17 hours 20 hours 8 days 10 days
Sept to Nov None None None None None 4 days 5 days
Dec None None None None None None None
Vacation schedule for subsequent years of employment beginning on January 1.
Years of Service
PT<20
PT 20 -24
PT 25-29
PT 30 – 34
Non-
Officer
Officer &
AVP
VP & Above
Up to 1 through 4 years None 58 hours 70 hours 82 hours 96 hours 17 days 22 days
5 through 9 years None 72 hours 87 hours 102 hours 120 hours 20 days 22 days
10 through 14 years None 96 hours 116 hours 136 hours 160 hours 22 days 22 days
15 or more years None 106 hours 128 hours 150 hours 176 hours 22 days 22 days
Parental Leave
Full time employees with one (1) year of
service may be paid for up to ten (10)
business days or eighty (80) hours following
the birth or adoption of a child
Bank Holidays
10 paid holidays
Bereavement Time
Time is given to assist employees during
difficult time dependent upon the relation
1.800.205.3464 | www.firstmerchants.com
Rev. 2017 Page 3
Sick Leave
Full and part time eligible after three months
of service
During each subsequent year of service on
January 1, full time employees receive 64
hours and part-time employees who regularly
work more than 20 hours a week, sick leave
will be prorated
Sick time rolls over and accumulates
Educational Assistance
Full and part time employees after six months
of service
Undergraduate or graduate courses taken at
an accredited institution
Full time employees receive 75% tuition and
50% book reimbursement provided the
employee receives a grade of C or better
BANKING SERVICES DISCOUNTS
Checking Account
Savings Account
Employee Loans
Travelers Checks
Cashier’s Checks
Personal Money Orders
Safe Deposit Boxes
1.800.205.3464 | www.firstmerchants.com
iAB Financial Bank/First Merchants Bank Partnership
KEY MESSAGES
Subject to approval by Independent Alliance Banks, Inc. shareholders and banking regulators, we plan to
join First Merchants Bank. With this combination, the company would have over $8.3 billion in assets,
providing financial strength and the ability to continue our mission of being a high performing, customer-
centric company. The planned combination of iAB Financial Bank and First Merchants Bank represents an
alliance between two well respected and like-minded companies.
Partnered with iAB Financial Bank, First Merchants Bank provides a perfect complement and natural extension
linking Allen, Huntington, Marshall and Wells counties to our existing markets in Decatur, North Manchester
and Wabash.
Like iAB, First Merchants shares expertise and commitment to agri-business banking. Our blended resources
and continued focus on this specialty area provides us with the unique opportunity to strengthen our foothold in
the marketplace.
iAB Financial Bank will become one of six regions within First Merchants Bank, providing robust growth
opportunities in the Fort Wayne and surrounding areas.
The combination of iAB Financial Bank and First Merchants Bank provides an excellent opportunity, as we
strive to grow profitably and efficiently, in what has become a very competitive and highly regulated industry.
First Merchants Corporation is currently a $7.2 billion financial services holding company, the largest
headquartered in Central Indiana. Looking forward, our bank would be over $8.3 billion in total assets, giving
us the ability to leverage costs and expenses (economies of scale), for items such as health insurance, IT,
internal processing, regulatory and compliance management, etc.
We share a vision of providing relationship banking, while striving to become the highest performing bank in
every market we serve. The core values of both companies share a commitment to local decision making,
personal service, long-term relationships and community involvement.
First Merchants has a solid balance sheet, with a history of strong earnings, and most importantly, has been
serving and providing trusted advice to local communities, just like ours, for over 120 years.
For customers, this combination would support broader access to diverse product and service offerings to
include enhanced commercial lending limits.
We intend to finalize the combination of iAB Financial Bank and First Merchants Bank in the fourth quarter
of 2017 pending the necessary approvals.
The boards of both companies have already signed an agreement to merge.
Next, we plan to get approval from regulators and the shareholders of Independent Alliance Bank, Inc.
We look forward to finalizing the combination once final approvals are obtained.
FOR COMMON CUSTOMER QUESTIONS AND THEIR ANSWERS, SEE THE FOLLOWING PAGES.
iAB Financial Bank/First Merchants Bank Partnership
Who is First Merchants?
First Merchants is the largest financial services company headquartered in Central Indiana, with over 100
locations in 27 Indiana, two Ohio, and two Illinois counties.
Our community banking history dates back to 1893, giving us over 120 years of experience.
We provide customers with financial services delivered locally by bankers who are known and trusted in their
communities. We take pride in building deep, lifelong relationships where customers can bank with their
neighbors and friends.
The First Merchants family includes First Merchants Bank, Lafayette Bank & Trust, and First Merchants Private
Wealth Advisors.
Will you be keeping all iAB Financial Bank banking centers?
It is early in the process, and many decisions, including locations will be made as more information becomes
available.
Looking forward, iAB Financial Bank customers would be able to conduct business at even more banking
centers. Our combined bank will provide service through over 115 locations throughout 31 counties in Indiana,
as well as two counties in both Illinois and Ohio.
Will my account number/debit card/service charge change?
Possibly. As we prepare to finalize our partnership, we’ll be evaluating accounts and planning to integrate our
systems. We pledge to communicate any necessary changes to you in a clear and timely manner.
For now, it’s business as usual, and you may do your banking as you’ve always done, using your existing
account numbers, logins, etc.
Will the name of my bank change?
As part of our planned partnership, iAB Financial Bank will proudly be taking the First Merchants Bank name,
but the people who serve you would not change.
We believe that banking is personal, and pledge to continue to provide the same personal service and advice
you’re accustomed to, coming from the same great people you know and trust. The community banking
principles iAB Financial Bank stands for are alive and well.
First Merchants Bank promises “The Strength of Big, The Service of Small.” By taking on a new name, we will
be better able to deliver the strength our larger company offers, while keeping our promise to support your
ability to deliver personal service, every day.
iAB Financial Bank/First Merchants Bank Partnership
Why is this happening/Why First Merchants?
Over the next few days, you may read headlines that say "First Merchants Acquires iAB Financial Bank" or
"iAB Financial Bank Sells to First Merchants.” While those headlines are technically correct, they don't
properly convey the real spirit of the transaction. iAB Financial Bank and First Merchants believe this to be the
best time to join together because there is a great opportunity to combine our strengths. First Merchants is the
right strategic partner whose vision and passion for serving its communities is closely aligned with what iAB
Financial Bank has been delivering since 2005, and during 70 years as Grabill Bank and MarkleBank.
First Merchants’ strong capital position allows for larger commercial and small business credits, spurring
additional economic and community development opportunities, all while preserving a customer-centric
approach. Additionally, iAB Financial Bank clients will benefit from enhanced product and service offerings, the
convenience of a larger banking center and ATM network and significantly enhanced commercial banking
lending limits.
First Merchants Bank | P.O. Box 792, Muncie, IN 47308 | 1.800.205.3464
Lafayette Bank & Trust | A Division of First Merchants Bank | P.O. Box 1130, Lafayette, IN 47902 | 1.800.755.2491
First Merchants Private Wealth Advisors | A Division of First Merchants Bank | P.O. Box 792, Muncie, IN 47308 | 1.866.238.0082
www.firstmerchants.com
About First Merchants
With over 100 banking locations throughout 27 Indiana counties as well as two
in both Illinois and Ohio, we provide our customers with broad financial services
delivered locally by bankers who are known and trusted in their communities.
First Merchants Corporation is the 105th largest financial services company
in the country, as well as the largest financial services holding company
headquartered in Central Indiana. For 120 years, our focus has been and
remains on building deep, lifelong relationships.
Our family includes:
First Merchants Bank
Serves Adams, Brown, Delaware, Fayette, Hamilton, Hancock,
Hendricks, Henry, Jay, Johnson, Lake, Madison, Marion,
Miami, Morgan, Porter, Randolph, Shelby, Union, Wabash,
and Wayne counties in Indiana, Cook and DuPage counties in
Illinois, and Butler and Franklin Counties in Ohio.
Lafayette Bank & Trust,
A Division of First Merchants Bank
Serves Tippecanoe, Carroll, Jasper, White, Montgomery, and
Clinton counties
First Merchants Private Wealth Advisors,
A Division of First Merchants Bank
One of the largest trust companies in the state of Indiana;
provides a full complement of trust and investment services
CORPORATE HEADQUARTERS
First Merchants Corporation
200 East Jackson Street
Muncie, Indiana 47305
765.747.1500
Stock Symbol: NASDAQ: FRME
The Strength
of Big,
The Service
of Small,
since 1893.
Trust products are not bank deposits and are not FDIC insured.
CORP-SHEET-ABOUT-0516
First Merchants Corporation has a rich history that dates back to
1893, when the bank was Merchants National Bank of
Muncie. Through many years of acquisitions, mergers
and charter consolidations, First Merchants Bank was
established.
First Merchants Corporation has continually increased
its capital strength through steady growth, sound
financial management and a commitment of personal
service to our customers. Since our modest beginnings
over a century ago, personal, reliable and professional customer service was exhibited when
daily entries in hand written journals were made. Today with significant improvements in our
processes, via advancements in technology, the Corporation’s commitment to personalized
customer service is just as important as it was the first day we opened our doors for business.
Service and strength continue to be our theme for growth since our first president, Hardin Roads,
started on his quest. It is our people that make this
quest of growth a reality.
Our commitment to shareholders is to continue
to evolve a culture that values
employees while emphasizing high
performance results. We want and
need our employees to strive for success because they have an
ownership in the company. We want and need our employees to
view their time spent here as a career rather than a job. We believe
strongly in hiring the right attitude first and training for skills.
Our consolidated structure supports our delivery commitment and
expands the scope of our lending capabilities, allowing us to deliver
strength and service... every day.
www.firstmerchants.com
First Merchants History
First Merchants Bank | P.O. Box 792, Muncie, IN 47308 | 1.800.205.3464
Lafayette Bank & Trust | A Division of First Merchants Bank | P.O. Box 1130, Lafayette, IN 47902 | 1.800.755.2491
First Merchants Private Wealth Advisors | A Division of First Merchants Bank | P.O. Box 792, Muncie, IN 47308 | 1.866.238.0082 CORP-SHEET-HISTORY-0316
1893
• Merchants
National Bank
1988
• Pendleton
Banking
Company
1991
• First
United
Bank
1996
• Union
County
National
Bank
• The
Randolph
County
Bank
1999
• First
National
Bank of
Portland
• Anderson
Community Bank
2001
• Frances
Slocum
Bank &
Trust
2002
• Lafayette
Bank &
Trust
2000
• Decatur
Bank &
Trust
2003
• Commerce
National
Bank
2008
• Lincoln
Bank
2012
• Shelby
County
Bank
2013
• Citizens
Financial
Bank
2015
• Cooper
State Bank
• Ameriana
Bank
2014
• Community
Bank
1 Limited service center
Serving Indiana, Illinois and Ohio
Banking center ATM
Our Banking Locations
For the most up-to-date listings of locations and hours, please visit us online at www.firstmerchants.com/locations.
www.firstmerchants.com
ALBANY
937 W. Walnut St.
765.789.4426
ALEXANDRIA
1202 N. Park Ave.
765.724.2800
ANDERSON
33 W. 10th St.
765.622.9773
1801 N. Scatterfield Road
765.640.4973
1526 E. 53rd St.
765.648.4950
ATTICA
Super Test
301 S. Brady St.
AVON
7648 E. U.S. Highway 36
317.272.0467
BROOKSTON
103 N. Prairie St.
765.563.6400
BROWNSBURG
975 E. Main St.
317.852.3134
CARMEL
1 E. Carmel Drive
Suite 100
317.844.5675
10210 N. Michigan Road
317.554.8260
CICERO
1100 S. Peru St.
317.984.8800
CONNERSVILLE
832 N. Central Ave.
765.827.0811
CRAWFORDSVILLE
134 S. Washington St.
765.362.0200
CROWN POINT
155 N. Main St.
219.228.2275
DALEVILLE
14500 W. Davis Drive
765.378.7077
Heartland Business Center
9301 S. Innovation Drive
DECATUR
520 N. 13th St.
260.724.2157
Adams Memorial Hospital
1100 Mercer Ave.
Campus Center,
Woodcrest of Decatur
1300 Mercer Ave. 1
260.724.2157
DEMOTTE
437 N. Halleck St.
219.987.5812
DYER
Woudeland Professional
Center
1100 Joliet St.
219.322.5314
EAST CHICAGO
4740 Indianapolis Blvd.
219.228.2272
2121 E. Columbus Drive
219.228.2269
East Chicago Marina
3301 Aldis St.
EATON
107 E. Harris St.
765.396.3311
Eaton Pantry
17000 N. State Road 3
FISHERS
11521 Olio Road
317.863.3177
11991 Fishers Crossing
Drive
317.813.3323
FLORA
805 E. Columbia St.
574.967.4318
FRANKFORT
60 S. Main St.
765.654.8533
FRANKLIN
2259 N. Morton St.
317.346.7474
Johnson Memorial
Hospital
1125 W. Jefferson St.
INDIANA
164
65
65
69
74
74
80
39
39
55
55
55
57
57
57
57
64
64
70
70
72
74
74
80
88
88
90
74
70
70
71
71
71
75
75
75
75
77
77
80
90
80
76
70
70
71
71
71
75
75
75
75
77
77
80
90
80
76
164
65
65
69
74
74
80
39
39
55
55
55
57
57
57
57
64
64
70
70
72
74
74
80
88
88
90
74
I n d i a n a
I l l i n o i s
O h i o
O h i o
I n d i a n a
I l l i n o i s
Munster
Lafayette
Lafayette
Munster
Darien
Carmel
Noblesville
Alexandria
Muncie
Muncie
Chicago
IndianapolisSpringfiel d
Columbus
Fort Wa yne
ColumbusIndianapolis
Springfiel d
We’re Growing!
Current First Merchants Locations
iAB Financial Bank Locations
Arlington Bank Locations
First Merchants Bank | P.O. Box 792, Muncie, IN 47308 | 1.800.205.3464
Lafayette Bank & Trust | A Division of First Merchants Bank | P.O. Box 1130, Lafayette, IN 47902 | 1.800.755.2491
First Merchants Private Wealth Advisors | A Division of First Merchants Bank | P.O. Box 792, Muncie, IN 47308 | 1.866.238.0082 CORP-SHEET-LOCATIONS-0816-EP
GREENFIELD
1810 N. State St.
317.462.4463
GREENWOOD
1250 N. Emerson Ave.
317.881.1414
1275 U.S. Highway 31 N.
317.884.1045
901 S. State Road 135
317.882.4790
Village Crossing Kroger
11 Declaration Drive
HAMMOND
5311 Hohman Ave.
219.933.0432
HIGHLAND
3853 45th St.
219.924.6650
Homestead Plaza
8149 Kennedy Ave.
INDIANAPOLIS
10333 N. Meridian St.2
5915 N. College Ave.
317.287.0470
INGALLS
227 N. Swain St.
KNIGHTSTOWN
22 N. Jefferson St.
765.345.5131
LAFAYETTE
250 Main St.
765.423.7100
3901 State Road 26 E.
765.423.7167
2862 Old U.S. Highway 231 S.
765.423.7166
2504 Teal Road
765.423.7164
2200 Elmwood Ave.
765.423.7163
2513 Maple Point Drive
765.423.3821
1803 Veterans Memorial
Parkway S., Suite J
765.423.3841
Super Test
1803 E. 350 S.
Super Test
1309 Sagamore Parkway S.
LAPEL
1011 N. Main St.
765.534.3181
LIBERTY
107 W. Union St.
765.458.5131
MERRILLVILLE
6101 Harrison St.
219.513.5291
803 W. 57th Ave.
MIDDLETOWN
790 W. Mill St.
765.354.2291
MONTICELLO
116 E. Washington St.
574.583.4666
Super Test
301 W. Broadway St.
Walmart
1088 W. Broadway St.
574.583.3078
MOORESVILLE
1010 N. Samuel Moore
Parkway
317.834.4100
MORGANTOWN
180 W. Washington St.
812.597.4425
MORRISTOWN
488 W. Main St.
765.763.6552
MUNCIE
101 S. Country Club Road
765.747.1332
2101 S. Madison St.
765.747.1541
200 E. Jackson St.
765.747.1500
1628 W. McGalliard Road
765.747.1552
801 S. Tillotson Ave.
765.747.1335
1701 W. University Ave.
765.747.1592
Westminster Village
5801 W. Bethel Ave.1
765.378.8760
MUNSTER
707 Ridge Road
219.836.5500
1720 45th Ave.
219.924.1720
NASHVILLE
189 Commercial St.
812.988.1200
NEW CASTLE
2118 Bundy Ave.
765.529.2230
NEW PALESTINE
7435 W. U.S. Highway 52
317.861.9400
NOBLESVILLE
830 Logan St.
317.773.0800
400 Noble Creek Drive
317.776.7676
1007 S. 10th St.5
317.776.7680
201 N. 10th St.5
317.776.7686
651 Westfield Road
317.776.7735
NORTH MANCHESTER
901 State Road 114 W.
260.982.7504
PENDLETON
3055 W. U.S. Highway 36
765.778.9793
100 E. State St.
765.778.2132
PERU
990 W. Main St.
765.472.4363
PLAINFIELD
1121 E. Main St.
317.837.3640
PORTLAND
112 W. Main St. 3
260.726.7158
Main Street Market
218 W. Lincoln St.
260.726.7158
REMINGTON
101 E. Division St.
219.261.2161
RENSSELAER
200 W. Washington St.4
219.866.7121
St. Joseph’s College
Halleck Student Center
910 W. Schaefer Circle
REYNOLDS
105 E. 2nd St.
219.984.5471
RICHMOND
2206 Chester Blvd.
765.935.4505
SCHERERVILLE
7650 Harvest Drive
219.864.0947
SHELBYVILLE
29 E. Washington St.
317.398.9721
2350 Marketplace Blvd.
317.642.5110
ST. JOHN
11100 W. 109th Ave.
219.513.5420
TRAFALGAR
110 N. State Road 135
317.878.4111
UNION CITY
450 W. Chestnut St.
765.964.3702
UPLAND
Taylor University
236 W. Reade Ave.
VALPARAISO
855 Thornapple Way
219.465.1602
WABASH
1250 N. Cass St.
260.563.4116
189 W. Market St.
260.563.4116
WEST LAFAYETTE
2329 N. Salisbury St.
765.423.7162
Purdue University
Cary Quadrangle
1016 W. Stadium Ave.
Purdue University
Hillenbran Dining Court
1301 Third St.
JB Battlefield
5851 State Road 43 N.
WESTFIELD
3333 E. State Road 32
317.867.7740
WINCHESTER
122 W. Washington St.
765.584.2501
YORKTOWN
1501 N. Nebo Road
765.747.4910
BOLINGBROOK
Holiday Inn
205 Remington Blvd.
DARIEN
8301 S. Cass Ave.
630.203.1653
FLOSSMOOR
Flossmoor Commons
3301 Vollmer Road
708.263.6415
HARVEY
135 E. 154th St.
708.263.6414
HEGEWISCH, CHICAGO
13323 S. Baltimore Ave.
773.646.1000
PALOS HEIGHTS
7101 W. 127th St.
708.263.6418
SOUTH HOLLAND
601 E. 162nd St.
708.263.6416
TINLEY PARK
7231 171st St.
708.614.2315
Hilton Garden Inn
18335 LaGrange Road
Country Inn & Suites
18315 LaGrange Road
Holiday Inn
18451 Convention Center
Drive
Convention Center
18451 Convention Center
Drive
COLUMBUS
3650 Olentangy River
Road
614.583.2200
1616 E. Dublin Granville
Road
614.408.0410
3245 N. High St.
614.408.0470
5090 N. High St.
614.408.0480
1669 W. 5th Ave.
614.408.0250
DUBLIN
5811 Sawmill Road
614.408.0274
OXFORD
4 N. College Ave.
513.524.8301
REYNOLDSBURG
6950 E. Main St.
614.408.0375
ILLINOIS
OHIO
1
Limited service center; 2 ATM and
business banking only. No cash on
premises. 3Drive up & ATM located at
115 W. Main St. 4 ATM 1 block NW of
banking center. 5 Drive up only, no lobby.
The Strength of Big
First Merchants Corporation is the largest
financial services company headquartered in
Central Indiana with over 100 locations in
27 Indiana counties as well as two counties
in both Illinois and Ohio. We provide our
customers with broad financial services,
delivered locally by bankers who are known
and trusted in their communities.
First Merchants Bank has been providing
the best of what community banking can
offer since 1893.
With over $2.0 billion in assets, First
Merchants Private Wealth Advisors is one of
the largest trust organizations in the State of
Indiana offering a full array of trust services
to businesses, individuals and non-profit
organizations.
First Merchants Bank | P.O. Box 792, Muncie, IN 47308 | 1.800.205.3464
Lafayette Bank & Trust | A Division of First Merchants Bank | P.O. Box 1130, Lafayette, IN 47902 | 1.800.755.2491
First Merchants Private Wealth Advisors | A Division of First Merchants Bank | P.O. Box 792, Muncie, IN 47308 | 1.866.238.0082
www.firstmerchants.com
CORP-SHEET-STRENGTH-0217-temp
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I n d i a n a
I l l i n o i s
O h i o
O h i o
I n d i a n a
I l l i n o i s
Munster
Fort W ayne
Lafayette
Lafayette
Munster
Darien
Carmel
Noblesville
Alexandria
Muncie
Muncie
Chicago
IndianapolisSpringfiel d
Columbus
ColumbusIndianapolis
Springfiel d
The Service of Small
The balance that makes First Merchants unique is
our unwavering commitment to the communities
we service. With a legacy of over 120 years, we
believe that to be a true community bank, we must
be an active partner in the community. Partnership
to us means more than writing a check for a
donation or showing up for a photo opportunity.
Partnership is doing. Painting and cleaning a
child care facility, feeding the hungry, building
Habitat homes, doing what it takes to make our
communities better places to work and live.
Through our First Merchants Serves program, we
offer each and every First Merchants employee
the opportunity to volunteer in their community
and receive full pay one day per year. Not
surprisingly, a large percentage of our employees
give back far more than one day annually.
We believe the strength of our communities is
fundamentally beneficial for all of us. It’s part of
our legacy, and the right thing to do.
First Merchants Bank | P.O. Box 792, Muncie, IN 47308 | 1.800.205.3464
Lafayette Bank & Trust | A Division of First Merchants Bank | P.O. Box 1130, Lafayette, IN 47902 | 1.800.755.2491
First Merchants Private Wealth Advisors | A Division of First Merchants Bank | P.O. Box 792, Muncie, IN 47308 | 1.866.238.0082
www.firstmerchants.com
CORP-SHEET-SERVICE-0217
First Merchants Bank | P.O. Box 792, Muncie, IN 47308 | 1.800.205.3464
Lafayette Bank & Trust | A Division of First Merchants Bank | P.O. Box 1130, Lafayette, IN 47902 | 1.800.755.2491
First Merchants Private Wealth Advisors | A Division of First Merchants Bank | P.O. Box 1467, Muncie, IN 47308 | 1.866.238.0082
Fourth Quarter 2016 Earnings
First Merchants Corporation (NASDAQ -
FRME) reported record 4th quarter 2016
net income of $22.3 million, compared to
$14.2 million during the 4th quarter of 2015.
Earnings per share for the period totaled a
record $.55 per share, an increase of $.18
per share, or 48.6 percent, over the same
period in 2015.
Year-to-date net income totaled a record
$81.1 million, compared to $65.4 million
during the same period in 2015. Earnings
per share for the full year of 2016 totaled a
record $1.98 per share, an increase of $.26
per share, or 15.1 percent over the same
period in 2015.
Michael C. Rechin, President and Chief
Executive Officer, stated, “First Merchants’
2016 results included record performance
throughout nearly every category of the
balance sheet and income statement
which resulted in successful achievement
of our year’s high performance targets.
Crisp execution, the economic and interest
rate outlook, combined with our recently
announced Columbus, Ohio expansion,
position us to deliver sustained value
through 2017 and beyond.”
First Merchants Corporation Fact Sheet
February 7, 2017
First Merchants Corporation Announces Record Fourth Quarter 2016 Results.
www.firstmerchants.com
Total Risk-Based
Capital Ratio 14.21% 10%
Tier 1 Risk-Based
Capital Ratio 12.02% 6%
Leverage Ratio 10.54% 5%
TCE/TCA 9.24% N/A
2016 4Q
FMC
“Well-
Capitalized”
Requirements
Capital Position
Analyst Comments
D A Davidson – January 2017
Buy
4Q16 EPS of $0.55 was up 7.8% from
3Q16 EPS of $0.51 and up 48.6% from the
comparable year ago period. The linked
quarter improvement in earnings was
attributable to higher spread income (+1.7%)
and significantly lower noninterest expenses
(-4.9%). We are raising our 2017 and 2018
EPS estimates to $2.12 and $2.38 from $2.11
and $2.35, respectively, to account for the
accretive impact of the acquisition.
Keefe, Bruyette & Woods – January 2017
Outperform
FRME finished off a successful 2016 by
posting a strong 4th quarter result, beating
expectations by $0.04/sh. Lower expenses
and continued strong loan growth were
the driving forces behind this quarter’s
performance. We expect positive operating
trends to continue, leading us to raise our
2017/2018 estimates, as well as our price
target to $41. We reiterate our Outperform
rating on the shares.
FIG – January 2017
Market Perform
We are maintaining our “Market Perform”
rating and bumping our Price Target to $40
(+$1) which reflects about 16x our 2018 EPS
plus credit for excess capital and ~250% of
2017 tangible book value. We continue to
believe a peer like multiple or slightly better
is justified given the company’s healthy
profitability, solid/consistent growth trends,
and strong credit quality and asset sensitivity.
2016 FOURTH QUARTER STATISTICS
Asset Size $7.2 billion
Deposits $5.6 billion
Loans $5.1 billion
Private Wealth $2 billion
Customers 199,246
Banking Centers 106
ATMs 124
NASDAQ Symbol FRME
• Retail Banking
• Mortgage Banking
• Business Banking
• Commercial Banking (Middle
Market, Agriculture, Healthcare
Services, Real Estate)
• Cash Management Services
• Private Wealth Advisors
(Investment Management, Trust,
Retirement, Private Banking and
Brokerage)
CORP-SHEET-FACT-4Q16
At a Glance
As Central Indiana’s largest community
banking company, we deliver superior
service with presence close to the
customer in 27 Indiana, two Ohio and
two Illinois counties for:
4th Quarter Highlights
• Net Interest Margin Stays Strong at 3.90%
• 1.26% Return on Average Assets
• Efficiency Ratio of 52.18%
Full-Year Highlights
• Record Net Income of $81.1 Million, a 24%
Increase over 2015
• Earnings Per Share of $1.98, a 15.1%
Increase over 2015; Highest in Company’s
History
• Total Assets of $7.2 Billion; Grew by 6.7%
over 2015
• $446 Million of Organic Loan Growth for
the Year Reflects a 9.5% Growth Rate
Michael C. Rechin is President and Chief Executive Officer of First Merchants Corporation,
a $7.2 billion financial holding company headquartered in Muncie, Indiana, with banking
operations in Indiana, Illinois and Ohio. The Corporation also operates First Merchants Private
Wealth Advisors.
Rechin joined First Merchants in 2005 as Chief Operating Officer. He was promoted in April
2007 to President and Chief Executive Officer. Prior to joining First Merchants Corporation,
Mike was Executive Vice President of Corporate Banking for National City Bank, managing its
Indiana operations. Mike began his banking career with National City in Cleveland, Ohio, where
he grew up and relocated to Indianapolis in 1995. During his tenure with National City, Mike had
responsibility for all commercial banking activities.
Mike is a graduate of Miami University of Ohio with a bachelor’s degree in English and an
MBA in finance.
As an active leader in the central Indiana community, Mike is a director of the Indiana State Chamber of Commerce, Lynx Capital Corporation,
The Center for the Performing Arts, Sheehan Family Foundation, and OneZone. He previously served as a director of the United Way of
Central Indiana, The Arts Council of Indianapolis and Junior Achievement of Indianapolis.
Mike is an avid golfer and an all-around sports fan focusing primarily on Indiana and Cleveland teams. Mike and his wife, Debbie, have
three children and reside in Carmel, Indiana.
Mike Rechin
President and Chief Executive Officer
765.213.3488 | mrechin@firstmerchants.com
www.firstmerchants.com
BIO-SHEET-RECHIN-0117
Mark K. Hardwick is Executive Vice President, Chief Financial Officer and Chief Operating
Officer of First Merchants Corporation, a $7.2 billion financial holding company headquartered
in Muncie, Indiana, which operates in Indiana, Ohio and Illinois.
Hardwick joined First Merchants in November of 1997 as Corporate Controller and was
promoted to CFO in April of 2002. In June of 2007, Hardwick also assumed all leadership
responsibilities related to Operations, Technology and Risk Management for the Corporation.
Prior to joining First Merchants Corporation, Hardwick served as a senior accountant with
BKD, LLP in Indianapolis.
Hardwick is a graduate of Ball State University with a Bachelor’s degree in Accounting and a
Master’s in Business Administration. He is also a Certified Public Accountant and a graduate of
the Stonier School of Banking.
As a leader in the central Indiana community, Hardwick serves as a member of the Board of
Meridian Services, Union Chapel Ministries, Cardinal Properties, Inc., The Miller College of Business Advisory Board and a member of the
Finance Committee of The Community Foundation of Muncie and Delaware County.
Hardwick is a member of the Ball State University Athletic Hall of Fame and a Distinguished Alumni of the Ball State University Miller
College of Business. He was also the recipient of the Indianapolis Business Journal’s “CFO of the Year” in 2012.
Mark and his wife, Cathy, live in Yorktown, Indiana, and have two children, Halie and Bryce.
Mark Hardwick
Executive Vice President, Chief Financial Officer and Chief Operating Officer
765.751.1857 | mhardwick@firstmerchants.com
www.firstmerchants.com
BIO-SHEET-HardwickMark-0117
Mike is Executive Vice President and Chief Banking Officer for First Merchants Corporation, a
$7.2 billion financial holding company headquartered in Muncie, Indiana, which has operations
throughout Indiana, central Ohio and Illinois. The Corporation also operates First Merchants
Private Wealth Advisors.
Stewart has a bachelor’s degree in Finance from Millikin University in Decatur, IL, and an MBA
from Butler University in Indianapolis, IN. His current community support includes Director and
past Chairman of Bosma Industries, Director of Westminster Neighborhood Services, Director
of Park Tudor Planned Giving and past Director for Junior Achievement of Central Indiana,
Inc., past Chairman of the Seton Society (a St Vincent Hospital Foundation Organization) and an
alumnus of the Diversity Leadership Group of Greater Indianapolis. He also served two years
on the Board of Directors of Ballet Internationale and was Co-Chair of National City’s Central
Indiana United Way Campaign.
Stewart joined First Merchants in 2008 as Chief Banking Officer. Prior to joining First Merchants, Stewart spent eighteen years with
National City Bank, most recently as Executive Vice President of the Corporate Bank and Chief Credit Officer of the Indiana Bank.
Stewart and his wife, Barb, have one son.
Mike Stewart
Executive Vice President and Chief Banking Officer
765.213.3434 | mstewart@firstmerchants.com
www.firstmerchants.com
BIO-SHEET-StewartMike-0217
John is Executive Vice President and Corporate Chief Credit Officer for First Merchants
Corporation, a $7.2 billion financial holding company headquartered in Muncie, Indiana, which
has operations in Indiana, Illinois and Ohio. The Corporation also operates First Merchants
Private Wealth Advisors.
John’s career with First Merchants began in 2007 as First Vice President and Senior Manager of
Lending Processes. He was promoted to Deputy Chief Credit Officer in 2008, to Corporate Chief
Credit Officer in 2009, and Executive Vice President in 2013. Prior to joining First Merchants,
John was Senior Vice President and Credit Officer at National City Bank covering a multi-state
portfolio.
John is a graduate of Indiana University with a Bachelor’s degree in economics and holds a
Masters of Business Administration from Case Western University, Weatherhead School of Management. Martin and his wife have two
children and reside in Westfield, Indiana.
John Martin
Executive Vice President and Corporate Chief Credit Officer
765.378.8534 | jmartin@firstmerchants.com
www.firstmerchants.com
BIO-SHEET-MartinJohn-0217