NOTE 15 REGULATORY CAPITAL continued Actual and required capital amounts and ratios are listed below. (1) as defined by regulatory agencies NOTE 16 EMPLOYEE BENEFIT PLANS The Corporation's defined-benefit pension plans cover substantially all of the Corporation's employees. The benefits are based primarily on years of service and employees' pay near retirement. Contributions are intended to provide not only for benefits attributed to service-to-date, but also for those expected to be earned in the future. 48 2003 2002 ----------------------------------------------------------------------------------------------------------------------------------- REQUIRED FOR REQUIRED FOR ACTUAL ADEQUATE CAPITAL (1) ACTUAL ADEQUATE CAPITAL (1) AMOUNT RATIO AMOUNT RATIO AMOUNT RATIO AMOUNT RATIO =================================================================================================================================== December 31 Total Capital (1)(to risk-weighted assets) Consolidated ...................... $266,488 11.60% $183,793 8.00% $224,967 11.17% $161,087 8.00% First Merchants ................... 67,425 11.08 48,667 8.00 69,424 11.69 47,493 8.00 Madison ........................... 21,682 10.71 16,198 8.00 21,040 11.45 14,706 8.00 First United ...................... 6,679 10.95 4,882 8.00 7,429 12.97 4,581 8.00 Randolph County ................... 8,023 11.20 5,731 8.00 7,616 11.27 5,407 8.00 Union County ...................... 15,679 11.37 11,032 8.00 16,636 12.35 10,778 8.00 First National .................... 10,643 12.25 6,951 8.00 10,211 11.37 7,182 8.00 Decatur ........................... 11,273 11.84 7,616 8.00 11,462 11.77 7,789 8.00 Frances Slocum .................... 18,173 15.19 9,571 8.00 16,259 11.68 11,132 8.00 Lafayette ......................... 70,401 11.32 49,765 8.00 67,912 11.00 49,387 8.00 Commerce National ................. 36,698 12.31 23,851 8.00 Tier I Capital (1)(to risk-weighted assets) Consolidated ...................... $215,995 9.40% $ 91,896 4.00% $202,550 10.06% $ 80,543 4.00% First Merchants ................... 59,858 9.84 24,334 4.00 63,776 10.74 23,746 4.00 Madison ........................... 19,473 9.62 8,099 4.00 18,978 10.32 7,353 4.00 First United ...................... 5,985 9.81 2,441 4.00 6,713 11.72 2,290 4.00 Randolph County ................... 7,160 10.00 2,865 4.00 6,771 10.02 2,703 4.00 Union County ...................... 14,067 10.20 5,516 4.00 15,202 11.28 5,389 4.00 First National .................... 9,750 11.22 3,476 4.00 9,324 10.39 3,591 4.00 Decatur ........................... 10,268 10.79 3,808 4.00 10,242 10.52 3,895 4.00 Frances Slocum..................... 16,669 13.93 4,785 4.00 14,510 10.43 5,566 4.00 Lafayette ......................... 64,982 10.45 24,883 4.00 61,111 9.90 24,694 4.00 Commerce National ................. 27,472 9.21 11,926 4.00 Tier I Capital (1) (to average assets) Consolidated ...................... $215,995 7.38% $117,110 4.00% $202,550 7.92% $102,309 4.00% First Merchants ................... 59,858 7.37 32,475 4.00 63,776 8.14 31,327 4.00 Madison ........................... 19,473 8.07 9,658 4.00 18,978 8.47 8,959 4.00 First United ...................... 5,985 6.99 3,426 4.00 6,713 8.32 3,226 4.00 Randolph County ................... 7,160 7.89 3,632 4.00 6,771 7.64 3,546 4.00 Union County ...................... 14,067 7.30 7,709 4.00 15,202 7.38 8,239 4.00 First National .................... 9,750 8.53 4,571 4.00 9,324 8.20 4,547 4.00 Decatur ........................... 10,268 7.61 5,400 4.00 10,242 7.66 5,350 4.00 Frances Slocum..................... 16,669 10.52 6,341 4.00 14,510 8.37 6,933 4.00 Lafayette ......................... 64,982 8.02 32,397 4.00 61,111 7.93 30,813 4.00 Commerce National ................. 27,472 7.78 14,133 4.00 (table dollar amounts in thousands, except share data) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS